CASE 1: ALLEN MANUFACTURING CORPORATION
Allen Manufacturing was founded in 1966 by Frank Allen, who personally
managed the company until his death in 1972. He was succeeded by his sons
Steve, who became the president of the corporation, and Walter, who assumed
the position of general manager.
The company manufactures exothermic products for use in steel production,
such as fiber mold liners, superimposed consumable hot tops, and exothermic
side boards. The manufacturing plant consists of mixing operations, where raw
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materials are blended in electrically powered ribbon mixers, and molding operations,
where the mixture is placed into dies and formed as per mold design
of the customer. Following the molding operation, the product is transported to
the curing area by means of a gasoline-powered forklift and placed into the
furnace for a period of four to six hours at 400 degrees Fahrenheit. The product
is cooled and transported to the packing area to be packed and shipped.
Production Department
The production department is under the supervision of David Blake, production
superintendent. He joined the company in 1964 as a laborer and, subsequently,
worked his way through the ranks.
David Blake’s assistant is John Donovan, who was hired in 1970 as an assistant
quality control manager. He was appointed as David’s assistant in 1972
because of his abilities in administrative procedures. Currently, John handles all
the administrative duties, while David supervises production.
The third in command in production is Donald Nelson, who is the general
foreman. His job is to schedule production on a day-to-day basis and to follow
it through.
Maintenance Department
The maintenance department is headed by James Seibert, maintenance superintendent.
James has been with the company since its inception and is a close
personal friend of David Blake. It is James’s duty to order replacement parts
and perform necessary repairs of company equipment.
James’s assistant, Joe Kelly, directly assigns and supervises the maintenance
duties. The maintenance department usually receives assignments for maintenance
by means of work orders written by one of the production foremen and
approved by John Donovan.
Incident 1
Don Nelson approached Jim Seibert with, “Our furnaces are in desperate need
of repair. They are inconsistent. The ware is constantly being overbaked in
certain sections and not baked enough in others.”
Jim Seibert’s reply was, “We are constantly repairing the furnaces, but with
the parts and equipment available we are not able to repair them to your satisfaction.
I have been told that funds are not available for the purchase of these
parts.”
Incident 2
Don Nelson again approached Jim Seibert. “How are we expected to meet
our orders if we cannot get our ware to the furnace? Two of our forklifts are
out of order; and the remaining two, which are in use, are unsafe to operate.”
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Jim Seibert replied, “You can’t expect miracles from my men. They are underpaid
and overworked as it is. You will have to get by with the two lifts you
are now operating until we get the opportunity to repair the ones in the shop.”
When Don Nelson passed this information to his supervisor, David Blake, he
was told, “I feel that under the circumstances maintenance is doing the best they
can. Just give them time.”
Dissatisfied with David Blake’s answer, Don Nelson decided to take the situation
into his own hands and to write a memo to Walter Allen.
To: Walter Allen
From: Donald Nelson
Subject: Unsatisfactory condition of equipment
I feel a problem has arisen in the plant that you should be aware of. We are finding great
difficulty in meeting our orders. Our furnaces are not working properly and our forklifts
are in deplorable condition. Every time I approach Jim Seibert on the subject I get a
poor excuse instead of action.
Upon receipt of the memo, Walter Allen called a meeting with David Blake,
John Donovan, Jim Seibert, Don Nelson, and Joe Kelly. All participants at the
meeting were free to discuss their respective problems. The results of this meeting
were as follows:
1. Jim Seibert was given more freedom in purchasing parts and equipment.
2. It was suggested that Don Nelson submit his orders and complaints to maintenance
in the form of written work orders, so that his views would not be put off or overlooked.
3. Through the work order process, David Blake and John Donovan would be made
aware of the problems that Don Nelson was experiencing.