Bayonne Packaging, Inc.
Why were delivery, cost, and quality all tanking last October?
Delivery, cost and quality were all tanking last October due to problems fulfilling Bayonne’s operations strategy. It became apparent that packaging processes running at full capacity don’t have sufficient flexibility or leeway to accommodate variability in customer orders. Shifts in variability such as in types of orders, partial orders, and completion time led to increased variability of delivery time. Enough latitude must be given so that work flow processes can readjust and keep up pace. The variability of delivery time, order type, and order time has increased without any changes to the process. Another cause may be attributed to the absence of clear workflow processes due to an inconsistent ERP system. Often individual departments did what they needed to do to keep production flowing. Departments such as Quality Control, Sales Management, Composition, Sheeting, Printing, & Die-Cut, Fold & Glue, as well as Scheduling were forced to operate independently from each other. As a result, there became evident ineffective communication displayed between parties, departments, and customers. The lack of communication influenced department managers to make their own decisions without considering the consequences to those affected down the line of succession. There is also a widespread lack of communication about waiting times for each department which has resulted with giving Bayonne Packaging a poor track record of meeting delivery deadlines in the marketplace. In addition, Bayonne Packaging lacked an efficient method of determining priority order amongst its departmental processes. Delivery, cost, and quality suffered with a lack of constant workflow data, which rendered the company’s information systems to provide incorrect assumptions. Overall, the pressure of meeting delivery deadlines and insufficient maintenance caused these various problems.
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