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Slide #
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Narration
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Slide 1
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Tammy: Welcome to Contemporary Business.
This week I will be meeting with Greg Thompson, a Corporate Trainer from Walters Aeroworks. We will be discussing ways he can keep his current workforce motivated and focused while the company considers expansion plans.
I will also be meeting with Ian Adams, who is the Production Manager to look at the current manufacturing facility to address one of the alternatives regarding expanding the current production facility.
We are outside of Greg’s office so let’s see what Greg has for us in regards to training.
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Slide 2
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Tammy: Good morning, Greg! Thank you for taking the time to speak with me today regarding your training role in the organization.
Greg: Tammy, thanks for stopping by to work with me today on how to address our training needs at Walters Aeroworks.
Tammy: So what are the issues facing Walters Aeroworks right now?
Greg: We have always provided opportunities for our people to be empowered to make decisions that impact their individual departments, but because of the uncertainty on what the expansion plans are for the company, we are beginning to see the signs of internal conflict that are usually not found here.
Tammy: Are you seeing cognitive, affective or both kinds of conflict?
Greg: Let me start with affective conflict, which is a disagreement that focuses on individuals or personal issues. We are seeing some of this because people are concerned about their jobs and roles based on where the company is going. Some people think that if we build an additional production facility elsewhere, they either may be asked to move to assist with the startup of that facility, or their roles may be expanded here. If they are asked to move, that means making a decision about moving to a new state or country, and uprooting the family, which is a major life changing decision.
Tammy: Aren’t these people excited about a new challenge?
Greg: Most of the people here would welcome the challenge if they know what the decision is moving forward with the company. Everyone in the company knows that you are here, so they are very curious about what you are going to say about the company’s expansion.
Tammy: So, the major issue right now is the uncertainty that is going to happen. What is the other kind of conflict that we have not addressed yet?
Greg: The second kind of conflict is cognitive conflict, which occurs when there is disagreement that focuses on problems and issues related to differences of opinion. Everyone has their opinion on what the company should do, and this has started many arguments. We need your recommendations sooner than later to help get everyone focused on their jobs again.
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Slide 3
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Tammy: So, how can you get people refocused?
Greg: We are using many different ways to communicate and to motivate everyone within the organization while the final decisions are made. For example, we have weekly company meetings to address the latest information that we can share about the company’s plans. We also have been doing team-building exercises within each department to target building relationships and capacities of each departmental team to work together more effectively.
We also have employee suggestion boxes posted in the hallways throughout the building to allow everyone to have input on activities within the company. The suggestion box contents are reviewed every week to make sure that any issues requiring management attention are addressed immediately. We get back to the employee that raised the issue, and if it is a more widespread impact, then we also communicate this information to the department that is impacted. We have a very close knit organization here, so we do not want to let things get out of hand and lose valuable employees as a result of the uncertainty.
Tammy: Have you done any training to address the conflicts?
Greg: We have been doing training with the management team to help in this area as well. As you know, part of a manager’s job is to help keep the team motivated, so we have been doing group role playing to help the managers identify how to deal with the conflicts, and support their employees. Once the training is completed, we ask that the managers go back to their individual organizations and implement what they have learned in their training. All of this helps to keep our employees motivated, continues to provide empowerment opportunities and most importantly of all, keeps communications open.
Tammy: That sounds like a good start. Once the decision is made about expansion, will you have to make changes to any of the company’s existing training?
Greg: Based on the final decision, I will do some refresher training for everyone on communicating in the organization, motivation, and the continued importance of communications. I may also have to modify the new employee training if we decide that we are going beyond our current facility and starting up elsewhere.
Tammy: That is good to hear that you are already considering the implications. Would you have time to go with me to meet with Ian Adams about the production facility that you have here?
Greg: Certainly! We can talk on the way.
Tammy: Excellent! Then let’s go down the hall and talk with Ian. Please lead the way.
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Slide 4
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Greg: As we walk down to the production floor, we are walking past the offices for marketing, finance and accounting. I don't think you have met with anyone from these departments yet but you will be meeting with them in the next few weeks.
We are now outside the production area where the designers for all of our products work. We employ three product designers here that work with customers regarding the use and fit of parts that we currently manufacture. Keep in mind that they have given us a lot of ideas for new products to consider. This is one of the reasons that the whole idea started about expanding our company. These customers like what we have provided in the past, and look forward to see what else we can offer them for their aircraft. Some of our customers actually are changing which planes they are building based on what parts they can get from us! That is pretty amazing, don’t you think?
Tammy: Wow! You have very loyal customers!
Greg: That we do! That is why we are so anxious to move forward with our expansion plans. That would also mean that I would have to develop new training if we bring in new equipment or technology that we are not currently using. So not only do I handle the management training, but I also do the job specific training as well.
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Slide 5
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Greg: Here we are! Hey Ian!
Ian: Greg! Good to see you! This must be Tammy.
Greg: That is correct! Tammy Partridge, may I introduce Ian Adams, our Production Manager here at Walters Aeroworks.
Tammy: Ian, nice to meet you!
Ian: Welcome to my part of the business! Let me show you around the production floor.
Greg: Hey guys, I’m going to leave you two be. Tammy, it was great meeting with you. I’ll catch up with you both later.
Ian: Ok Greg, see you later!
Tammy: Thanks Greg!
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Slide 6
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Tammy: I took a very small tour with Bill Wright on my first day but we only got to see about ten percent of the production facility.
Ian, what is your experience and background in airplane building?
Ian: My master’s degree is in aeronautical engineering, and I also have a private pilot’s license. Like many of the other people that work here, I like to work on my own plane that I am building in my spare time.
Tammy: I see. Do you use any of the parts that are manufactured here?
Ian: I certainly do! I am a walking advertisement for the company, and I do what I can to talk about our products every chance I get.
Tammy: Can you please explain the layout of your production facility here?
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Slide 7
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Ian: When we first started the production facility here, we had to consider the four different types of layouts: product, fixed-position, customer-oriented and process. Let me go through each of these layouts and explain our rationale for our decisions involving our manufacturing facility.
Click the icons you see on the screen to explore these layouts in depth.
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7-1
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The first layout type is a product layout, also known as an assembly line, where production equipment is set up along a product flow line, and the work in process moves along this assembly line past all of the workstations. This type of layout efficiently produces a large number of the same product, but it is not as flexible if there are a lot of product variations.
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Slide 7-2
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Ian: The next type of layout is the fixed-position layout that places the product in one spot, and workers, materials, and equipment come to it, instead of the other way around. This approach works for production of very large, bulky, heavy or fragile products that are not easily moved around.
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Slide 7-3
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Ian: We also considered the customer –oriented layout that considers how to arrange facilities to enhance the interaction between customers and services, but since we do not have customers come into our facility, this approach is not appropriate.
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Slide 7-4
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Ian: Lastly, we decided on a modified version of the process layout. This is where machinery and equipment are grouped according to their functions. The work-in-process moves around the plant to reach different workstations to accomplish the building of the product. A typical machine shop generally has separate departments where machines are grouped by functions such as grinding, drilling, pressing and lathing. This layout generally uses general-purpose equipment that can be less costly to purchase and maintain than specialized equipment.
Tammy: You said that you have modified this process layout, so what makes your approach different?
Ian: We have a combination of the machinery that I just mentioned, but we also use computer driven technology to aid our machinists when they are doing high precision work to create the parts. We also do not do large quantities at a time, so that is another difference from the standard process layout.
Tammy: Thanks for telling me about the different types of facility layouts. Now can we look at what you have here on your production floor?
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Slide 8
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Ian: Yes, we can. On our left is the shipping and receiving department where all of the raw materials that are needed as inputs to our production process come into our facility. We also ship our completed products from the same loading dock.
Tammy: I am watching what is happening on the floor right now and I see a lot of traffic going back and forth through the actual production area to move raw materials and finished products. Would this be changed if this production area was expanded to support more product lines in the future?
Ian: That is something that I had not thought about, but it certainly would be a consideration if we would expand our current production area. The layout now has the finished products coming back through the production area to get back to the loading dock. It might make more sense to set up a new shipping department dock at the other end of the building, closer to where we finish production.
Tammy: Let’s keep that in mind as we walk through the production floor. What happens in the area directly in front of us?
Ian: This is where we keep our inventory of raw materials and finished aircraft components.
Tammy: Why are your raw materials in the same area as finished goods? Does that mean that if you are filling a customer order that only has parts that are already available that the person filling the order has to come to the production floor to get the parts?
Ian: Hmm, never thought of it from that perspective, but you are correct!
Tammy: It seems to me that you would want to separate your raw materials from the finished components and actually keep the finished products in a separate location where the customer’s order can be filled, packed and ready for shipping outside of the production floor. That would mean setting up a new area on the production floor, correct?
Ian: Yes, and we would have to look at these regardless if we expand here or not. Now that I think about it, we have some extra space further down in the building that we could look for a separate storage and packing room that would be closer to the new loading dock area that we had just discussed. I think that is certainly doable!
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Slide 9
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Tammy: Good! Now let’s look at the area where you do the actual manufacturing of all of your parts, and can you please tell me how did you decided on the layout here?
Ian: When we first started the company, we only had one product line, so we set the manufacturing area up for that range of products as a modified process layout. As we have expanded to more product lines, we have just added a new process area with each one.
Tammy: Does this mean that you may be duplicating equipment and manufacturing processes?
Ian: At the time, it seemed like a good idea, but we have been experiencing the fact that we seem to have a lot of the same machines and computer driven technology in multiple areas, which increases our expenses. As a result of this, we do have some employees that are idle when their particular product line is not being replenished.
I will have to investigate how our production costs could be reduced if we group all of the equipment together, and we probably could even eliminate some equipment and maintenance costs as a result of this consolidation.
Tammy: Would you be able to do this consolidation within the same space that you currently have, or would you have to expand the building itself, particularly if you implement the idea we just had about the separate stockroom?
Ian: , If we are talking about bringing in additional product lines, I would have to redesign the production floor to see if it would all fit.
Tammy: Would you be able to give me an estimate of what it would take to modify the existing production space for the changes that we talked about today?
Ian: I should be able to draw it up and estimate the construction costs for the new stockroom and loading dock, as well as the modification of where we do the actual production now. I will have it ready for you early next week.
Tammy: There is one more question that I neglected to ask. Where is your quality control done?
Ian: Currently, that is done by the loading dock, but based on what we just discussed, I will look at readdressing where it is located. It may make better sense to move it just inside the stockroom area where the quality inspection could be done before we put the completed parts into our inventory.
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Slide 10
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Tammy: Your production facility is one of the most crucial areas for the entire company, and it has a definite impact on the costs for any of the expansion alternatives that are being considered. I really appreciate the time we spent together today exploring possibilities.
Ian: It was my pleasure, and I look forward to speaking with you again if you have any other questions. We can chat again once I have my estimates done, and by that time, you may have also narrowed down the number of alternatives that you would be recommending.
Tammy: Thank you Ian! I’ll talk to you later.
Oh and before I forget, I wanted to remind you to take part in the weekly threaded discussion we have available for the students. So far the feedback and ideas have been excellent and we are all learning a great deal from one another.
Until next time, take care.
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bus508_week_6_scenario-attachment.docx
