Analyze and Describe the Issues Faced by Malescowski and the Company and the Reasons for These Issues.
Jim Malescowski is the president of the Wisconsin Specialty Products Division of Lamprey, Inc. He has been tasked by the company’s Chief Executive Officer, Jack Ripon, to determine what the operational cost of moving the company’s plants located in Oconomo, Wisconsin to Mexico. High labor costs are a significant reason the plant is no longer cost effective to operate. The union employees in Oconomo average $16 per hour while the average wage paid to Mexican workers average approximately $1.60 an hour.
Labor costs are high due to the plant’s work force being unionized. Added to that many of the plants employees are third generation employees. The plant’s employees tell stories of their parents and grandparents working in the same plant. The Lamprey plant is the last of the original manufacturing plants operating in Oconomo opening in 1923. The other plants are all newer and have managed to overtake the Lamprey facility in product price. Price aside, the fact that the plant is also beginning to be overtaken in product quality is a determining factor.
The union has been unwilling to accept lower wages. Plans were discussed concerning changing the plant to a cell manufacturing approach, which would entail cross-training the employees so they would be able to perform three different jobs. The union bosses were not willing to accept the new plan.
Finally Malescowski has many friends among the Oconomo employees. He dreads the thought of dismissing the entire plant, where there is little chance of finding employment in the local area. Malescowski has to determine whether moving production to another plant save the company any money?
Describe a Strategy for Changing Things that Would Help Resolve the Situation at Hand. A strategy for changing things that would help resolve the situation in the Oconomo plant would entail the...