How serious is Titeflex's situation as Jon Simpson takes over as the company's president?
The situation with Titeflex is concerning, but with the proper turnaround plan, Titeflex as an enterprise has the variables that are needed for a sustainable path going forward. The financial position of the company and the brand recognition for high quality are two variables that Titeflex can build on with an equal focus being put on the internal operations as well to be successful.
Did TI make a good decision in picking Jon Simpson to head Titeflex?
Jon has strengths in the area of operations, which is important when considering the immediate changes will be within that discipline. However, Jon’s approach with dealing with labor unions is not an effective approach and complicating the situation is the new management team that Jon is now reporting to. In both instances, Jon has yet to build a rapport or relationship with either group, which is essential to Jon managing effectively. When weighing the pros and cons of Mr. Simpson, I believe that it was not a good decision to hire him for general manager.
What, if anything, can he do to turn around Titeflex? How should Simpson deal with various internal groups, including workers, the union, Ralph Galarneau, and middle management?
First and foremost, Jon needs to create a turnaround plan, which should begin with immediate action within the operations and focus on process improvements to achieve operational excellence. Jon should begin with a production review and start by tackling the low hanging fruit. Simple steps such as general housekeeping and production flow are a good start followed by production metrics that can be measured and shared with the workforce. The implementation of processes such as TQM, JIT, and lean manufacturing should also be next step objectives to reduce lead times, reduce costs, and retain market share. Constant communication on the goals and objectives should also be a top priority...
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