Busm 5110 - in Class "team Collaboration"

BUSM 5110 - in class "team collaboration" case analysis  - 10 marks

John is Yard and Shipping Supervisor for a Modular/Manufactured home company in Saskatoon, Saskatchewan. The company in business for over 25 years has a good reputation but does not have a formal quality control/assurance program. John has been the yard supervisor for 4 years and prior to that he worked a variety of jobs in the assembly plant. In his position he is responsible for the supervision of the storage yard where finished homes are held prior to shipping. In addition he supervises 2 yard crews. The first crew installs appliances and does touch ups or minor finishing in the yard not completed in the plant. This work could on occasion include installing doors, windows or flooring which was not installed in the plant due to a shortage of material or manpower on the assembly line. The second crew prepares the homes for final shipping, loads homes on a trailer and arranges actual delivery to retail sales agents across Western Canada.

Demand for the company’s homes has steadily increased in recent years and management has been anxious to increase production.  To that end the company introduced a new bonus program where all employees would receive a small gift if weekly production exceeded 26 homes. Gifts included company promotional items like caps, shirts or lunch vouchers. If monthly production met or exceeded 110 homes each employee, supervisor or manager would receive a bonus that month of up to $350 dollars. Individual bonuses were calculated by a formula which considered actual wages or salary earned during the month. In this way it was thought absenteeism would also be reduced and he company would be a more exciting and fun place to work.

After 3 months production targets were actually exceeded. Management was pleased. Employees, supervisors and managers were happy to receive the small gifts and looked forward to the extra cash each month. In fact the union had asked management if the company would match the bonus if payment was directed to the employee’s RRSP.  

In the 4th month John noticed that the number of finished homes in the yard was increasing. Homes were usually in the yard for 3 to 5 days prior to shipping. It was now common for homes to be in the yard over a week. Touch ups and finishing work had increased to the point he had to put on an afternoon shift. In addition he was getting calls and complaints from retail agents over delays in shipping and quality problems such as cracked plaster, missing trim and water leaks. He had also recently attended a meeting with the accountants who were alarmed that warranty claims were on the rise. He was asked to step up his vigilance and not overlook any quality issues prior to shipping. He was also criticized for having to put on an afternoon shift. Senior management has asked John for a report by the first of next week to resolve all issues.