Turnaround at the Preston Plant

In: Business and Management

Submitted By anna14212
Words 909
Pages 4
Intro
• Seemed to not inspect quality that well
• Preston plant was located Preston, Vancouver
• The headquarters was in Massachusetts
• The company coated papers for ink jet printers, majority of output
• After coating the conversion department cut the coated rolls to the final size and packed the sheets in small cartons
The curl problem
• Hewlett – Packard, main customer, had problems with paper curling under low humidity o Reasonable Demanding, don’t trust you if they are testing your product, can be an incentive
• Next 7-8 months they tried to fix the problem
• They actually solved the problem in January 2000
• Then made revisions for a new improved coating formula
• They were also making a loss of $2 million for the year
Slipping out of control
• Spring 2000, productivity, scrap and re-work levels = poor
• Because of this the company increased the speed of the line and made a lot of changes to raise productivity o No discipline, concept of control o Only worried that product was shipped within specification
• Hewlett – Packard (their main customer) analyzed the report, saw that they can make the product but they were wondering for future two ore three generation products
• 2000 had 2 significant events o Hewlwtt = Packard asked plant to bid to supply a new ink – jet platform, known as vector, would secure healthy order for several yeasrs o The plant was acquired by Rendall
• Hewlett – Packard attitude bewildered the management team o They saw that they were making rolls and rolls of paper within specification
• Hewlett – Packard saw that they were out of control by showing, the control chart, they needed this Vector deal
The crisis
• Go back to positions that prevailed in January, the state before productivity pressure had caused the process to be adjusted
• Worked on ways of implementing unambiguous shut down rules o Talked…...

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