D3 Saab Case

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SAAB AUTOMOBILE ENGINE ASSEMBLY DEPEARTMENT

EXECUTIVE SUMMARY

Background
The gasoline engine plant division of Saab Scania has got 350 employees and has a capacity of producing 36 engines/hour and 480 engines/10 days. This accounts to 86,400 engines in a year, whereas the total capacity of the plant is 110,000 engines per year i.e. nearly 80% of the total capacity is being used and the rest 20 % could be accounted as the cushion for meeting the peak demand. So the main issue the organization is presently facing is not with the productivity but with employing young people especially those below 30 years of age and high school graduates in to assembly line jobs. The statistics quoted in the case mentions that only 4 % of the high school graduates preferred assembly line jobs. It is also mentioned in the case about the unavailability of Swedish workers and their inefficiency when compared to foreign workers. By quoting the researchers findings it could be doubted that the group assembly at Saab Scania has only limited appeal, and it doesn’t attract young people and is suitable for the most work oriented, responsible and highly motivated individuals.

Objectives
* The workers to be motivated.
* To attract the young people in to assembly line jobs.
* Reduce the absenteeism, inefficiency and stress which all are the currently seen phenomena in workers in assembly line jobs.

Specification of decision
* The same work group rotation and work group design to be extended to other departments also. * All the new recruits except for the highly technical skilled jobs should be rotated with the four departments. * If possible the above mentioned policy ie the interdepartmental swapping of the current employees can also be worked out. * The extension of this work group design to all other assembly departments could be seen after analyzing the effectiveness of the above mentioned recommendations. Reasons for Decision

The work groups design...
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