Fabritek Corporation: Written Case Analysis Case Synopsis The following analysis is presented for HBS Case on Fabritek Corporation where Mr. Stewart Baker, the automotive produts manager is faed with issues of !uality ontrol and on"time delivery of pilgrim order. #fter one of the millers from the team assigned to $ilgrim $i lgrim ontrat has an aident and takes leave from work, at the prodution floor he is replaed by #rthur Moreno, one of the best millers available in fatory by Frank %eere, the milling department foreman. Frank, soon reali&es that there is mismath between the remuneration Moreno was able to get from his previous assignment on shifting to the urrent 'ob, as an individual(s performane in getting more work done was linked to him getting premium pay. There was also a onflit with ompeting ob'etives as $ilgrim team originally had a good ohesiveness and Moreno was used to working on his own that resulted in ompeting ob'etives. This inoherene ultimately lead to rework and delay in delivery of parts to $ilgrim Corporation.
Process Design Fabritek(s engineering department knowing the onstraints of the e!uipment availability designed the manufaturing line with ) milling, one drilling and one grinding mahines. Human resoure was planned suh that one material"inspetor will be sreening the astings before they go are setup for manufaturing and help in the setting up proess whereas the seond material"inspetor would be responsible for !uality ontrol at the end of manufaturing proess. *ne operator was assigned to ) milling mahines and an another operator handled the drilling and grinding operations. # shemati of the proess is given below+
pg.
Problem Identification Fabritek Corporation problems are identified based on different areas of the ompany. The list and table e-plain these problems+ . CorporateCompany /evel 0. $rodution 1. H2 ). 23% .Areas of Problems.
.Problems.
.Causes.
Corporate
4eneral Strategies
The $resident stressed only four key elements of the ompany5s strategy for meeting ob'etives.
$rodution
. 6nonsistent labor fore.
. #fter getting in to an aident, the ompany had no real replaement.
0. 7eak labor"labor ommuniation.
0. Moreno and Clarke showed ommuniation gaps, also Moreno, and other workers.
Human 2esoures
. /ak of Training and %evelopment.
. /abor fore found it hard to work and understand the mahining proesses
0. 8nstrutured $ayments
re!uired for $ilgrim5s $ro'et whih was unlike there usual work for produing
for workers.
manufaturing produts for other 1. /ak of H2 involvement
ompanies.
towards motivating 0. The employees5 salaries were based on
workfore.
the !uantity of the produts and not on the !uality. 1. Moreno5s started to ause problems for the prodution beause he wasn5t getting paid enough on this new 'ob, unlike 90: last week he only got 9;).) on $ilgrim5s pro'et, due to whih he raised the output to <;=.
pg. 0
23%
. 8se of general"purpose mahinery.
. 4eneral purpose milling mahines was used to make $ilgrim5s parts.
0. Mahinery was with missing parts.
0.6n pratie, levers of the milling mahines were missing and ad'ustments were made by wrenhes.
The problems identified in the above table inlude problems from all over the ompany, they inlude ma'or problems to be retified as soon as possible to suessfully omplete the $ilgrim5s pro'et and other problems are towards a long"term plan. The ma'or problem are in the prodution are where a pile of 'obs are reated at 4rinding and %rilling stations due to <;= e-tra output by Moreno5s Milling Station.
Calculations to Eplain !oot Cause of Problem Below table is e-trated from >-hibit 0 of the ase problem and it indiates prodution times in minutes for ?? piees per day,
#s provided in the te-t, Total Cyle Time @ Mahine Time A >-ternal Time. Total Cyle Time for all Milling Cuts are alulated by adding all t he Total Cyle Times+ Total Cyle Time@ 1.:) A 0.<) A 1.1? A .;0: @ .:) min.
Similarly, Total Mahine Time@ 0.-ternal Time@ ?.) A ?.;)) A ?. A ?.-ternal Time. #s Total Mahine Time an be taken as onstant due to the fat that mahine time is altered either with replaement of mahinery or newer tehnology in the
pg. 1
proesses only Total >-ternal Time an be hanged by the effiieny of the workers. #s the standard prodution effiieny ahieved at Fabritek was 11=, this would differ the Total Cyle time by the fator given byD .:) E??=A11= @ .; min. This time would be taken if the worker were ompleting the 'ob without sarifiing !uality of the produt. However, if we alulate the same fator based on <;= rate of effiieny this would turn out to be <.1;min., whih is lesser than the Total Mahine Time .1: min as alulated above. This Total Cyle Time annot be ahieved unless one of the Milling Cuts are skipped or remains inomplete.
!ecommendations Based on the information given in the ase, we an establish that 1 defetive parts re!uire ? min to be re"grind. This auses an e-tra shift ost for the re"grinding and delaying of delivery. #s Mahine Time annot be altered, the only variable time an be >-ternal Time, but that too to a ertain e-tent. Furthermore, Mahinery annot be hanged as it would re!uire $lanning, /ayout %esigning and other time taking proesses. The problems identified at Fabritek an be resolved based on two riteria+ ".
S#ort $erm Problem Sol%ing
-
To inentive Moreno more beause if Moreno is replaed, the new worker would take time to learn the methods and their delivery shedule is tight and would not allow them any dela ys.
-
The ompany should provide Moreno e-tra work or shifts to ompensate his lowered weekly pay.
-
Moreno should be plaed at 4rinding and %rilling end so that his input is based on the output of Clarke. >ither this might leave Moreno with idle time, whih ould be resolved by providing him e-tra work, or e-tra shifts in the ompany ould ompensate that.
&.
'ong $erm Problem Sol%ing
-
Changes in Salary $oliy" The Salary $oliy should be more foused on Guality of $roduts rather than Guantity of *utput.
-
Changes in Motivation of >mployees" H2 should fous more on engaging employees together to redue ommuniation gaps between them.
-
4eneri $oliies should be avoid and ompany speifi poliies should be made and applied.
-
Fabritek should invest more on /earning and %evelopment of employees and bridge the gap between their skill levels to make all the labor onsistent.
pg. )
