Treadway Tire Analysis
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Problem Statement: As a result of high turnover and low morale, the Lima operation is challenged to maintain operating within a controlled and commercially viable environment.
Overview: After conducting extensive research into the personnel and productivity issues, our consulting team from OBE, Inc has identified several key issues facing the Lima Treadway operation, which if not rectified, continue to result in significant losses and unrealized potential gains for the firm. In 2007, nearly 50% turnover existed in foreman positions, a critical role in maintain operating standards and ensuring daily profitable production.
The subsequent recruiting costs, strained union relationship with line employees, and lack of control, in conjunction with the continually rising costs of raw materials have substantially hindered Limas productivity and profitability. The dissatisfaction and poor morale has become infectious, and is acknowledged by plant senior leadership, including plant manager Brandon Bellingham, as “a serious problem.”
Analysis: After analyzing the current state of affairs for the Lima site, the below issues have been identified as core problems facing the site:
Unclear scope and definition of foreman role
Foremen roles encompass range of responsibilities varying from labor relations, recommendations for disciplinary action, technical analysis, mechanical and engineering support, financial analysis and projections, processing improvements, administrative tasks including hourly salary authorizations, ensuring staff coverage, and maintaining legally compliant work environment.
Foreman population is not currently able to successfully execute each of these areas as they are either untrained, or unable to effectively juggle such non-related functions during their daily operating day.
Lack of structured L&D (learning and development) program on site
In several exit interviews foreman mentioned lack of training yet enhanced responsibilities. Common theme of being unsupported or untrained was regularly mentioned. As a result, foremen population unable to cope with responsibilities.
Lack of succession planning and support for daily operation
Rigid chain of command structure resulting in foremen population serving as initial point of escalation and expected resolvers for line issues, as well as being relied upon for strategy, root cause analysis, and managerial oversight. These are inherently contradictory functions and foremen population is unable to complete them simultaneously. As a result, plant manager Bellingham has noted “Foremen feel isolated.”
Action Plan: In order to address the above stated issues currently hindering plant operations, OBE was able to determine the following in order to remedy current situation:
Creation of “Team Leader” role
The “Team Leader” role will be filled by high performing line operators that show foreman potential. This role will serve as the initial point of escalation for all line issues and issues requiring immediate technical resolution.
This alleviates the burden of routine daily line resolution issues, lessens the rigidity of the current hierarchy, provides leverage to the foremen population, elevates the authority of the foremen role, and allows for foremen to delegate administrative functions