Bayonne Packaging, Inc Case Solution

Quality of the product has been under Bayonne’s consideration. These defects in quality are a major reason for losing customer satisfaction. These defects are resulting in increasing rejections of orders. Quality was deteriorating because of problems in application of glue. To make sure that quality is superior and customer satisfaction is priority Bayonne is taking all necessary steps to provide superior quality to customers.

Rejections from customers are increasing its cost and also impacting on the delivery time. Bayonne is facing a bad reputation for its strong promotional campaign of being on time. This is hurting Bayonne?s reputation badly. As a result, of Rand fired pervious VP operations to ensure on time delivery. Rand told to hit at least two of three targets i.e. quality, delivery and cost. These concerns show us the, current competitive, priorities of Bayonne.

2. How do you explain Bayonne's performance problems?

Bayonne performance is decreasing because of its internal conflicts, lack of management and poor communication. These problems cumulated and resulted in bigger problems like, deteriorating quality, missing on the delivery dates and increasing costs. As a result of these problems, there is general dissatisfaction about quality and delivery time of Bayonne. These concerns are causing an increase in rejection rate and back firing of its promotional campaign. These issues started to arose with the discrepancies in application of glue, either glue was over applied, giving a bad look, or it was missing completely, causing packaging to pop up. Many a times finishing was not appropriate with finishing components missing. These orders obviously are taken back and worked upon again. That arose problem of scheduling, where late orders are to be fulfilled first and then scheduling is done for other orders. Same is the problem, with glue and fold departments, where it’s getting late orders from the composition department, and they have to leave orders in the schedule to work on late orders. These hustles cause performance o get affected.

Overall there is a lack of communication within departments, for example, it’s almost never revealed if the sales are going to be late. Bayonne has set standards, but these standards are not followed properly. Ganging is done time and again the schedules are not worked upon, rather machine's ganging and scheduling in interrupted by the rush orders. Rand’s unnecessary interruption in scheduling is also a causation of problem. In other words, there is an overall hustle, no proper planning and, resulting, no smooth operations. Because of that, there is a decrease in quality, increase in cost and late in delivery.

3. What size of orders would you route to the Royal/Queen work center, and what to the Staude work center?

According to Gomes, fold and glue department is facing problems of breaking orders time and again. Sudden and hustling of orders is increasing at an alarming rate, while, it takes long to switch machines and meet orders. Addition to that, the switching and synchronizing glue swiftly to belts and swords are hard. When done swiftly and dirty, these belts and swords work slowly. Setting up royal international and queen international is hard and time consuming. According to figures provided, the total setup hours for royal / queen international are 155 and these machines are suited for orders having runs of 60,000 or more. These machines have highest standard times because of their complexity.