Operations Management
Introduction (“The purpose of this paper is to….. by ……with recommendations……”) The purpose of this paper is to raise productivity and profitability at the Portland Plant by improving upon performance objectives with recommendations on forecasting methods, process layout, appropriate technology, production approach, inventory approach, and a quality approach with tools to manage, measure, and assess quality.
Analysis
Operations Strategy and Performance TIMELINE: After being informed by HP of a curling problem with ink-jet paper in 1996, Portland Plant began formulating a new coating for their ink-jet papers. From then until Spring 1998 they were able to curb the curling issues. However in 1997 production speed issues occurred which resulted in a loss of roughly $1 million. Rexam Graphics bought the Portland Plant from James River Corporation in early 1998. Production issues weren't resolved in May 1998; 64 jumbo rolls were considered waste due to overproduction. Nearly a month later in June 1998, the plant was presented with the new Viper contract by HP, but in order to land the contract, James River Corp. was going to have to take a hard look at Portland Plants operations management. The initial information provided about Portland Plant demonstrates that the plant's people and culture lack integrity. The Portland Plant culture is summed up in one sentence: as long as paper is being made within the specific requirements, then everything is fine. The culture at the plant could be described as semi-committed, undisciplined, lackadaisical, and unmotivated. It seems as though the people who work for the organization only care that they are making a product within the specifications and guidelines given. At the Portland Plant, it is clear that their value and work ethic are not the best. The Quality Manager admits that their department was only there to inspect product but not necessarily take action to correct quality issues (Slack, 2007).
Analysis
Operations Strategy and Performance TIMELINE: After being informed by HP of a curling problem with ink-jet paper in 1996, Portland Plant began formulating a new coating for their ink-jet papers. From then until Spring 1998 they were able to curb the curling issues. However in 1997 production speed issues occurred which resulted in a loss of roughly $1 million. Rexam Graphics bought the Portland Plant from James River Corporation in early 1998. Production issues weren't resolved in May 1998; 64 jumbo rolls were considered waste due to overproduction. Nearly a month later in June 1998, the plant was presented with the new Viper contract by HP, but in order to land the contract, James River Corp. was going to have to take a hard look at Portland Plants operations management. The initial information provided about Portland Plant demonstrates that the plant's people and culture lack integrity. The Portland Plant culture is summed up in one sentence: as long as paper is being made within the specific requirements, then everything is fine. The culture at the plant could be described as semi-committed, undisciplined, lackadaisical, and unmotivated. It seems as though the people who work for the organization only care that they are making a product within the specifications and guidelines given. At the Portland Plant, it is clear that their value and work ethic are not the best. The Quality Manager admits that their department was only there to inspect product but not necessarily take action to correct quality issues (Slack, 2007).
References: Core Competencies. (2010, December 13). In Bain & Company. Retrieved September 15, 2011, from http://www.bain.com/publications/articles/management-tools-2011-core- competencies.aspx How Paper is Made (1998). In Pulp and Fiber Products. Retrieved September 17, 2011, from http://www.forestprod.org/cdromdemo/pf/pf8.html papermaking. (2011). In Encyclopædia Britannica. Retrieved September 10, 2011, from http://www.britannica.com/EBchecked/topic/1357055/papermaking Slack, N. (2007). Turnaround At the Portland Plant. Warwick College Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management (6th ed., pp. 168-230). Essex, England: Pearson. The Office Supply Supermarket. (Producer). (May 19, 2010). From Tree to Paper; How Paper is Made [Online video]. UK: SupermarketOnlineUK. Retrieved September 11, 2011, from http://www.youtube.com/watch?v=jGH7kQ30SKo