Rubatex Corporation

Rubatex Corporation, which manufactures meritless and foam for a variety of products, is having lots of problems, in particular at their Bedford plant. Although the sales spend a penny increased, the net profits have striked. American Industrial Partners (API), who purchased Rubatex, is demanding aggressive action to be taken to reduce the losses incurred. The oeuvreing conditions at the Bedford plant be abysmal. The plant is hot, dirty and not air-conditioned. The equipment is old and outdated. The work in the mill ara is physical in nature and requires the treatment of very high temperature galosh stock. Furthermore, workers are having a join of 40 minutes break every eight bit shift. Workers are also worried from the chemical dust that they are exposed to from the mixing compound will cause them health problems. Moreover, the labor- counselling relationships are not good. In an attempt to increase productiveness at the Bedford plant, the direction of Rubatex decided to increase the amount of rubber made in a single batch and decrease the baking fourth dimension from 30 minutes to 15 minutes. The managements target was to increase productivity by increase the output ( sunbaked rubber) and reducing the input (time for rubber to be baked).

Yet, the management did not take into consideration the maximum amount of rubber that a batch can hold or the temperature and the time requirements for proper baking. The management failed to study the negative impact this had on the efficiency of the labor force and on the quality of the baked rubber .Ultimately, there was a 33 % increase in baked rubber, however, the percent of usable rubber that can be sold has decreased dramatically. In another attempt to crop the problem, the management has decided to engineer a turnaround. The delegation was to boost sales by 30%, oblige workers to work overtime, and reduce the health care benefits to retirees to save costs. This resulted in a nine-month strike. The company failed to build good... If you want to get a honorable essay, order it on our website: Orderessay

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