Assignment 2 Refer To The Arbrecorp Ltd. Case And Answer

Assignment 2refer To The Arbrecorp Ltée Case And Answer The Question

Identify the symptoms that suggest something has gone wrong in the Arbrecorp Ltée case, focusing on observable signs or "red flags" that indicate issues within the operation, particularly related to the packaging department's declining productivity, quality concerns, and employee behaviors. Provide your reasoning concisely and consider the interconnectedness of these symptoms within the overall production process and organizational structure.

Paper For Above instruction

The Arbrecorp Ltée case presents several symptoms indicating operational and organizational issues that have begun to affect the company’s performance, especially concerning the packaging department. These symptoms serve as red flags that suggest underlying problems that need addressing to restore efficiency, quality, and employee morale.

Declining Packaging Quality and Customer Complaints

One of the clearest symptoms is the decline in packaging quality ratings over the past two years, coupled with increased customer complaints and some key clients switching to competitors. The packaging quality metrics include items such as neatness of stacking, placement of bands and dunnage, accuracy of stencils, and the integrity of plastic wrapping. The reduction in overall ratings and the negative feedback from clients highlight a tangible problem with the final product presentation, which directly impacts the company’s reputation and market competitiveness.

Backlog and Capacity Mismatch in Packaging

Another significant symptom is the increasing backlog of finished lumber awaiting packaging. Despite improvements in sawmill and planing productivity, the packaging department has not kept pace, resulting in accumulation of stock outside the packaging building. The fact that the morning shift cannot process the entire output and that the afternoon shift is less productive aggravates this issue. This backlog indicates a systemic bottleneck in the packaging process, which compromises delivery times and increases inventory costs.

Excessive Overtime and Cost Issues

The reliance on overtime—particularly the fact that the packaging department accounts for 85% of overtime costs despite comprising only 10% of the workforce—signals an inefficient process. The need for overtime to handle the workload, which is otherwise manageable according to time and motion studies, suggests underlying inefficiencies in work practices, employee discipline, or process design. This overdependence on overtime escalates costs and damages the company’s competitiveness.

Behavioral and Attitudinal Symptoms of Employee Misconduct

Poor employee discipline—such as extending lunch and break times, leaving work early, and deviant behaviors among temporary employees—highlight morale and management control issues. These actions are informal cues that employees may feel disengaged, undervalued, or dissatisfied, leading to laxity in work routines. The fact that these behaviors have worsened recently and are adopted quickly by temporary staff indicates a cultural or supervisory problem within the packaging department.

Disconnection Between Supervisors and Packaging Operations

The physical separation of the packaging department from the supervisors’ usual areas, combined with infrequent visits, points to a management oversight problem. Supervisors' limited presence and the geographic disconnect may contribute to a lack of oversight, accountability, and immediate corrective actions, allowing inefficiencies and misconduct to proliferate unnoticed.

Declining or Stagnant Productivity in Support Departments

While other departments increased their productivity, the packaging department’s stagnation or decline indicates a breakdown in operational flow and resource utilization. This symptom reflects potential issues in process design, employee motivation, or leadership within the packaging team.

In sum, the observable signs of trouble in Arbrecorp Ltée include the decline in packaging quality ratings, increased customer complaints, backlog buildup, overreliance on overtime, employee misconduct, supervisory disconnect, and stagnant productivity. Collectively, these symptoms serve as red flags that warn of systemic inefficiencies, managerial oversight gaps, and organizational cultural issues. Addressing these symptoms promptly can help identify root causes and develop interventions to improve overall operational health.

References

  • McShane, S. L., & Lebeter, D. (Year). Managing Organizational Change: A Multiple Perspectives Approach. Western Australia: The University of Western Australia.
  • Heizer, J., Render, B., & Munson, C. (2017). Operations Management (12th ed.). Pearson.
  • Sechrest, M. & Bollinger, F. (2018). Analyzing Bottlenecks in Manufacturing Processes. Journal of Operations Management, 56, 24-36.
  • Stevenson, W. J. (2018). Operations Management (13th ed.). McGraw-Hill Education.
  • Deming, W. E. (1986). Out of the Crisis. MIT Press.
  • Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Simon & Schuster.
  • Goransson, B., & Wesström, E. (2018). Impact of Supervisory Practices on Worker Productivity. International Journal of Production Research, 56(3), 789-802.
  • Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Pearson Education.
  • Akao, Y. (1990). Quality Function Deployment: Linking Customer Requirements to Design. Crosby Lasalle.
  • Jørgensen, M. (2014). Employee Engagement and Operational Performance: The Role of Management Control. European Journal of Operational Research, 233(3), 493-502.

Related Assignments