Substitute for Strategy
You won't be able to replace the true activity of operation strategy which is reconciliation between market requirement and operational capability with any of that strategy decision since they are only part of strategy, not the strategy itself.
Out of the crisis & The future
In spite of trauma, the plant’s management team faced Christmas of 2000, with increasing satisfaction
In December it made an operational profit for the first time for over two years
April 2001, HP formally gave the heavyweight ink-jet paper contract to Preston
Both 2001 and 2002 were profitable years for the Preston plant. By the end of 2002 the plant had also captured the majority of HP Canadian business
The Curl Problem
In late 1998 HP informed the plant about paper curling in low humidity
No complaint from HP customer but HP want it fixed.
In October 1999, a team at the plant made recommendations for a revised and improved coating formulation
There is a loss of $2 million in 1999.
In October 1999, Tom Branton was appointed as Managing Director
By January 2000 the process was producing acceptably
Curl Paper
Slip Out Of Control
In the spring 2000, productivity, scrap and rework levels continued to be poor
The operations management team increased the speed of the line and made a number of changes to raise productivity
Two significant event in spring 2000:
1) HP asked the plant to supply a new ink-jet platform (Vector project)
2) The plant was acquired by Rendall
There were occasional complaints about quality levels
Complaint
The Crisis
Tom set about the task of bringing the plant back under control
They decided to go back to the conditions in January, when the curl team’s recommendations had been implemented
Something positive was happening and morale on the shop floor was buoyant
Yet, in September 2000 the plant learned that it would not get the Vector project because of the recent quality problem
Crisis
Convincing the rest of the world
Quality
Establishing full statistical process control (SPC)
Get costs down
By december of 2000 there were 40 percent fewer people in the plant than two months earllier
Work on new products
Several new ideas were investigated. The most important of these became known as ‘Greenwrap’, a product, aimed at the Japanese market
Convince People
What Preston Do
3. Third – Work On New Products
Several new ideas were investigated; including some that were only possible because of the plant’s enhanced capability. The most important of these became known as
‘Green wrap’, a product, aimed particularly at the Japanese market.
Producing a protective wrap that was recyclable, an effective barrier against moisture, and could keep the newsprint free of welts and buckles was technically difficult.