Module 2 Case Treetop Forest Products
Identification (20%) Facts, assumptions and problem identification
Building-grade lumber industry is competitive and product being sold is not differential; only differentiation is due to product packaging and presentation.
Product packaging is biggest factor when buyers are making a purchasing decision between buying from Treetop or competitors.
Over the last 2 years, Treetop has declined in ratings for package of lumber products as a result lost customers to competitors .
Treetop has six departments: boom, sawmill, planer, packaging, shipping, and maintenance.
All other departments have a supervisor; however, packaging department does not have one designated supervisor. Possible solution is to convert one of the workers to supervisor, or dedicate a supervisor 100% of the time to packaging
To solve the issue supervisor from sawmill and planer deparments cover the shifts.
Due to distance between sawmill and planing divisions, the supervisors are unable given full attention to the operations of the packaging division. (assumption)
Distance cause the supervisor to visit the departments not as often as they should.
Productivity in 3 divisions remained constant, Sawmill and planing division productivity increased; however, productivity decreased in packaging department and caused the following:
Stockpile up
Risk of damaged stock increased the inventory cost
Cost Competitiveness suffered due to management placing additional employees from other divisions to solve the backlog issue faced by packaging department.
Packaging department run two shifts - morning and afternoon
Productivity level of afternoon shifts is less than morning shift employees
Reason behind the decreased in productivity level in the department is due to following:
Employees takes extended lunch and coffee breaks
Leave few min early, specially afternoon shift
Reallocation of temporary employees from different productive departments also follow the same practise after being in the packaging
Building-grade lumber industry is competitive and product being sold is not differential; only differentiation is due to product packaging and presentation.
Product packaging is biggest factor when buyers are making a purchasing decision between buying from Treetop or competitors.
Over the last 2 years, Treetop has declined in ratings for package of lumber products as a result lost customers to competitors .
Treetop has six departments: boom, sawmill, planer, packaging, shipping, and maintenance.
All other departments have a supervisor; however, packaging department does not have one designated supervisor. Possible solution is to convert one of the workers to supervisor, or dedicate a supervisor 100% of the time to packaging
To solve the issue supervisor from sawmill and planer deparments cover the shifts.
Due to distance between sawmill and planing divisions, the supervisors are unable given full attention to the operations of the packaging division. (assumption)
Distance cause the supervisor to visit the departments not as often as they should.
Productivity in 3 divisions remained constant, Sawmill and planing division productivity increased; however, productivity decreased in packaging department and caused the following:
Stockpile up
Risk of damaged stock increased the inventory cost
Cost Competitiveness suffered due to management placing additional employees from other divisions to solve the backlog issue faced by packaging department.
Packaging department run two shifts - morning and afternoon
Productivity level of afternoon shifts is less than morning shift employees
Reason behind the decreased in productivity level in the department is due to following:
Employees takes extended lunch and coffee breaks
Leave few min early, specially afternoon shift
Reallocation of temporary employees from different productive departments also follow the same practise after being in the packaging