Using a formal systems diagramming approach, analyze Bayonne's organizational performance and develop a robust effect-cause-effect tree diagram using the 5-Whys tool, as done previously in the course.
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Diagramexample.docxBayonne Packing 1
Bayonne Packing 3
Figure 1: Bayonne Packing Casual Loop Diagram
Figure 2: Bayonne Packaging 5-Why analysis
Cost – production cost exceeding revenue and inadequate inventory management
Why?
Why?
Why?
Why?
Why?
Problem: Bayonne Packaging’s First Loss in 2 decades
Quality – products do not meet customer needs and need to be sent back.
Company focused on reducing operating cost and had unbalanced strategic process flow
Business Diversification - wanted to maintain its core business and diversify its business simultaneously
Delivery – persistently late or incorrect deliveries
Low Customer Satisfaction & Retention Rate
Figure 3: Bayonne Packaging Cause-effect-cause Diagram
Figure 3: Bayonne Packaging Cause-effect-cause Diagram
Loss of Revenue
Increased Cost
Poor Maintenance
Delivery Delays
Customer Dissatisfaction and Poor Customer Retention
Decreased Quality
