J E A N S T H E R A P Y — LE V I ’ S F A C TO R Y W O R K E R S A R E A S S I G N E D TO T E AMS , A N D MO R A L E TA K E S A H I TDeskripsi lengkap...
International Human Resource ManagementFull description
Executive Summary
This case study analyzes the Levi Strauss and Company’s production and operations management. Levi Strauss & Co is an American Jeans and Casual Wear manufacturer. The company is founded y Levi Strauss on !"#$. As of no% it runs four rands %hich are Levi’s 'oc(ers 'enizen and Levi Strauss & Co. According to their company %esite their rands are among the most celerated names in the history of apparel. They are recognized for their )uality originality and integrity.
With
the analysis of the operations management of the company it is oserved that they are (een in protecting the environment. *n their layout and process design they pioneer in practices that reduce the use of energy %ater chemicals and other materials in the apparel activity. The company also implements its o%n Code of Conduct to ensure having a good performance of its suppliers. *n order to achieve good )uality of the products the company has estalished research and development facilities. The human resource department of the company also gives competitive salary to its employees ho%ever some prolems occurs in the %or(place since the company is using team approach that leads into une+pected array of prolems in the company. The prolems oserved in the production and operation management are, first no good )uality control is estalished and second - prolems
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arise in the human resource area of the company. This analyses ho% to address these prolems and ho% they are to e implemented.
Description of the Production and Operations Management
Layout and Process Design
The process of Levi Strauss & Co. egins %ith outsourcing of ra% materials from a different suppliers. arication process is done once the ra% materials are in hand. The production company has its o%n uni)ue process and specialized e)uipment. /o%ever the laor force in the company is very necessary. Specialized tas(s li(e se%ing and putting of uttons need attention %hich can e coming from the %or(ers. Semi0finished products are delivered to the %ashing process. The %ashing process of the products is sustantial part of the process since it is used as part of the )uality control of the products. When the %ashing process if finished the products %ill to cleaning ironing tagging total inspection and pac(aging and e ready to distriution.
After the
distriution process customers no% uy the Levi’s products. 1ne part of the lifecycle of products of Levi’s is the recycling process %hich the consumers have the vital role. 2sed 3eans can e recycled to ma(e another ne% one %hich %ill lessen the consumption of cotton.
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Sometime in 45!$ Levi Strauss & Co. introduced their Wellthread initiative %hich implements sustainale design and production process that enefits consumers apparel and the environment. Such initiative %ill have design that complements %ith duraility anticipates rise of clothing recycling modifies consumer ehavior through design and also tightening up the manufacturing process of the company.
The company uses more efficient more sustainale practices from the environment to the closets of the consumers. Lo%0impact production crop preservation %ater and energy savings are uilt into every part of their production process.
Planning and Control Mechanism
The Levi Strauss & Company generated a Code of Conduct 6anagement Systems 7uideoo( that is used for improving Code of Conduct performance. *t is a tool in order to provide a tool that %ould guide the suppliers.
This management system is used for
incorporating code of conduct goals and priorities into routine operations. 7iven this code of conduct the company can compel its suppliers to demonstrate sound code of conduct management and are prepared to delist those that fail to do so.
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Quality
With regards to ensuring the )uality of the products of the company Levi’s has estalished a pioneering research and development facility called the 8ure(a *nnovation La. The facility has tools necessary to enale the product technical and design teams to leapfrog the competition. The 8ure(a consists of $5 employees %ho are dedicated to hands0on testing and developing prototypes. With the help of this 9&' facility the )uality of the company’s product %ill e possile to achieve.
Human esource
Levi’s /uman 9esource starts %ith recruitment using the Levi’s /uman resource 9ecruitment and Selection :rocess. *t includes personal intervie% %hich is a tool to loo( into the selected candidate’s communication and movement s(ills. After the selection process and %hen an applicant is selected for a 3o there %ill e a training program called Training and Coaching for aout si+ ;<= months. Such program involves trainings %hich %ill enhance the technical and personal s(ill of the trainees to carry out their specific 3os. Training development also includes language training fashion trends pic( up training product training and enhancement of s(ills on ho% to launch the designs in the mar(et. The /uman resource of Levis is focused on attracting developing and retaining the top talent in the 4
industry y uilding a culture of o%nership high0performance and pride.
The company also offers a total compensation pac(age that includes a competitive salary and a %ide array of enefits. Levis also has estalished a foundation %hich enefits its employees. The 9ed ta foundation is created as a financial safety net for the employees. The funding is coming from the employees and retirees %orld%ide descendants of Levi Strauss and other company shareholders. 'onations coming from private individuals are also considered y the foundation.
*n !>>4 the company directed its 2.S. plants to aandon the old piece%or( system under %hich a %or(er repeatedly perform a single specialized tas( and %as paid according to the amount of %or( he or she completed. 2nder the ne% system there are groupings that are composed of !5 to $# %or(ers %ho %ill share the tas(s and e paid according to the total numer of clothing the team accomplished. The company figured that this %ould cut do%n on the monotony of the old system and enale stitchers to do different to do different tas(s thus avoiding repetitive0stress in3uries.
Pro!lems "ound in Production and Operation Description
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#$ Poor %uality control and human resource dilemma
!. 8vidence of :rolem *n the analysis of the :roduction and 1peration description of Levi Strauss & Co. it is evident that its )uality control for the finished product is )uite lac(ing. *ndeed the company ma(es sure that the )uality of the products %ill e met ut the procedures intended to ensure that a finished product adhered to the set of criteria is lac(ing. Another prolem %ith the company is the concept on having teams in the %or(place even though the laor union agreed to the idea. The employees noticed that their pay from the company %as shrin(ing %hen the ?team0idea@ %as started. With the production facilities that are operated y %or(ers that perform specific tas(s there %ill e an ine)uality regarding the speed on ho% the %or(ers their tas(s. 4. 8ffects of the :rolem 6any customers of Levi Strauss & Co. are having complaints regarding the )uality of the products that they uy at the company. *f this prolem %ill continue it could give the company ma3or dra%ac(s to them. ad reputation can affect the sales of the company and soon it %ill have sno%all effect to different units of the company. *n relation %ith the prolem of the employees of the company its effect %ill generally e ac)uainted on 6
the services that they %ill provide. *f the issue %ill not e resolved there %ill e a tendency that these employees %ill reel to the company and %ill not do their 3o properly. &$
Decline of Sales of the Company
!. 8vidence of the :rolem According to loomerg the sales of Levi Strauss & Company for the recent years have een plummeting. This is due to the gro%ing sports%ear trend that affects the sales of 3eans. 6any people no% are more health conscious and that %ill e the time %here different rands of sports%ear can gra the chance in introducing their products to the mar(et. 1ne reason that supports the decline of sales of the company is that the idea of %earing 3eans can e a great savings to a consumers. Since 3eans are %ear and tear apparel it means that consumers %ill not uy a ne% one as long as they can still %ear their 3eans. Such ehavior of consumers %ill have an impact to the sales of the company. 4. 8ffect of the :rolem When sales of a company declines it can greatly affect different areas of the company. With the gro%ing tension et%een the %or(ers and employers of the company an additional prolem li(e %ill more li(ely to aggravate. *f the mar(et of denim 3eans %ill fall there %ill e a 7
tendency to cut its %or(force in order to uphold its lo%0 cost production %hile striving in getting ac( it sales.
Strategic #lternative for Solving Pro!lems
'$ (mprovement of Quality Control on the Company A. enefits of alternative ! 8nhancement of the )uality control of the company %ill
detect error at the inspection level of the production process %hich can also reduce the cost during inspection time. *t could also lead to more uniform )uality of production. A good )uality control can re3ect numer of re3ects and saves the cost of having materials. *t can detect the ottlenec(s and troule spots in the production process. . Costs of alternative ! *f the company %ants to improve its )uality control then costs in implementing such improvements %ill e definitely incurred.
The company could entail as high
as !# to 45 percent of sales revenue and sometimes as high as B5 percent of total operations. 1nce the improvement of )uality control %ill e successful appraisal and prevention costs %ill also e incurred. )$ Performance of Method analysis and *or+ Measurement ,echni%ues A. enefits of alternative 4
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With the help of administering %or( measurement techni)ues the company can plan on %hat are the steps in improving its manpo%er resources. *t can help to estimate the numer and type of employees %ho are re)uired to do the 3o. Wor( measurement can also e used for production planning and scheduling cost reduction and control and can e a asis for inventing incentive schemes for employees. This can encourage the employees to %or( fast and efficiently. Along %ith %or( measurement the company must also have method analysis in order for them to study %hat %ill e the underlying effects on ho% the employees %ill ehave depending on the nature of their %or(. . Costs of alternative 4
6ethod analysis and %or( measurement techni)ues need the consultation of e+perts that are ale to analyze and interpret the outcome of the study. /iring such professionals su3ects the company in ac)uiring additional e+penses.
The implementation of the outcome
of the study %ill also ma(e the company to urden the e+penses.
Selection of strategic alternative and implementation
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A. The selected strategy for this case are to improve the )uality control of the company as %ell as implementing method analysis and %or( re)uirements. . *t is recommended that oth strategies must e implemented ecause it directly effects the status of the revenue of the company. 8mployees must e given importance ecause they are one of the contriutors in achieving the strategic development of Levi Strauss and Company.
/o%ever it %ill not e enough if the prolems
regarding the %or(force of the company is the only one solved. /aving a strong and efficient %or(force %ill not determine the success of a company. *mprovement of )uality control can address the impending decline of sales of the company. uality of a product is the read and utter of Levi Strauss and Company thus )uality control %ill not e neglected.
#ction Plan
*n setting up a good )uality control is to select the proper procedures to implement li(e choosing the statistical criteria or control rules and the numer of control measurements. *f the right procedure is identified it must e properly implemented. The company can use a )uantitative planning process that can e implemented %ith graphic tools. After these procedures a etter
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)uality control strategy is formulated that %ill minimize cost %hile ma+imizing )uality of the products manufactured y the company. *t is also recommended that for improvement of the )uality control the company can employ a three0stage design in %hich the first stage provides high error detection second stage - lo% false detection and third stage - prescries that length of the analytical run.
With concern to the strategy needed to address the prolem on the dissatisfaction of the %or(force on the company it can hire consulting firms and analysts to have method analysis and %or( measurement techni)ues. The outcome of the study %ill e the guide of the company on ho% they %ill address the certain prolem.
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eferences
oo(s
D. Slac( S. Chamers 9. Johnston 1perations 6anagement 45!5
Journals
Levi Strauss & Company Annual 9eport 45!$
Levi Strauss & Company Code of Conduct 6anagement Systems 455#
9. T. Eing Jr. ?Jeans Therapy@ The Wall Street Journal, 6ay 45 !>>" p. A!.