Case Study - ArbreCorp Ltee

I. \\/hat symptom(s) 1n this case suggest that something has gone

\Vrong?
T'lte syn1pton1s that exist in t11is c-.ase co suggest that son1et11ing had gone \Vrong include:

Bottleneck in packaging

Over the pasc nvo years, the sa\v111illing a11d pla11ning depa11111ent have greatly increased
their productivity level. Ho,vever, the productivity level of the packaging departntent has
decreased. T his culn1i1lllted to the

con.~iderably

large backlog of finished products

stockpiled out~ide the packaging building.

Jncrc.asc in produc1io11 cost

According ArbreCorp's n1anagen1ent, they had co add extra overtinte hours before and
after the shifts, as \\ell as a Saturday shift in order for the packaging deparo11ent co be

able to process all of the backlog. By doing this, 1\rbreCorp had to pay the workers one
and a half to tv.o tin1es for their overtin1e, tJ1us increasing their budgeted production cost.

Jncrc.asc in in\cntory costs a11d risk o f damage

Jn this case, it stated that there \Vas a stockpile of finish product outside the packaging
building. The con1pany will inciu additional costs over a period of tin1e due to storing and
n1aintaining the inventory. Moreover, there is an increased risk of dan1age to the finish
goods if they are left 11nprotected fron1 the outside elen1ents, e.g. rain (n1oisture and
drying), \Vhich can resuh to warping oftJ1e lun1ber.

Complaints and even loss of business tfom large c1ic11ts

T'11ere is n1ention of several custon1ers c.on1plaining abo11t the appearance of the fi nished
goods. Son1e larger custon1ers have even decided to shit) over to another con1peting n1ill.
T'ltis decision was 111ade because of the substandard appeara11ce of 1\rbreC01ps packaging
a11d end product when it arrived at their lun1ber yard . For insta11ce, the Jun1ber they
received is too \\/arped and therefore too difficult to \\'Ork \\itJ1.

Packaging depa11menl staff slacking

It is stated in this text t1rnt employees and supervisors at ArbreCorp are cognizant that the
packaging department staff tend to take exrended breaks~ l 0 mmute longer lunches and 5
rninute longer coffee breaks. Jn 3ddition, they also leave a fe\.v mmutes earlier before the
end of the \\'ork day. ArbreCorp suffers from poor-employee disciplnrnry 3tld 3lready
fonned an infom1ai group. which in tlus case is nor serving rhe company very well. The
team nom1s confhct with the company's goals due to their low task perfonnance.
Moreover. social

loafing~

is highly prevalent m th is case.

"Tlle prohli>Jii 1hat oc:cw.i; when people e.tt!rt It!~ e.001-t (and u.rnitlly

pe1form at a lower lt!\."t:l) u,ihen uorkittg in teams tlum

alone {1WcSltmit!,

Arbr~Corps

Su~en

~-..hen

working

& T~a. 2015, p. IY4).

mting dedining

In the case study. at stated that ArbreCorp won several Boismarche's packagmg qua1ny
awards over the past five years and even received high ratings if it didn't win tbe awards.
However. over the past two years. they started to decline.

2. \\!hat arc the tnain causes of these syrnpton1s?

1he mam causes of these symptoms mclude:

Lack

or leadership in Lhc packaging department

In this

ca.~e.

it is noted that each department has a . upervisor for every working sbift.

However. the packag ing depa11ment dad not have a designated supervisor. they on ly had a
planer supe1visor responsible for

mon1~ng

shift. and an evenmg one for the afternoon

shaft. Therefore. there is no one monitoring the ongoing activity of the packagmg staff.

Lack of communication bdw~l:n each department {team processes}

It is noted in this case that the stockpile of product as increasmg outside the packaging
building. There needs to be better teamwork heltavior"Actfr;Jies tlta1

tu' i>

tle1oted to enhtmcilig the qttt1li~1; of the ;nteractions.

in1enlepe11dencies, cooperathm, coord;natiun of teams (1\lt:Shane. Steen

&

Ttt~a.

2015. p. 204).

Each department should coordinate and commnunicate better with each other. l f they
knew that the packaging department were having a difficulr time processing a l] the
stockpiled goods, they should have conferred and made an effort to come up with a
proper solution. Task work behavior

E.tfurts del'Oft.d tu tmclerst<mcli11g the ta. k rec1uirenuJits. dist.o\ering the

..rule. by ~,.t/1ic:h the tttsk.') are to be pe1:for11u.-d.
interaction

u,iith

equipment.

exchanging

e.~tablishi1tg the patterns

of

task-related information,

de\.eluping team .~olwians Jo problems. .tmd :1.0 furth" (A1c:Shane. Steen &
Ttba, 1015. p. 204).
In order to perfom1 well, the department needs to find and excel at both types of
these intenu1 l process.

f\.1otivational an<.I coordination loss of packaging department

As mentioned in the

ca.~e.

the packagmg department staff tend to break the company

rules. They are abusing their breaks and takmg off early at the end of their slufts. There
.seems to be a lack oftean1 cobesien
"1'he

d~gr1&

of at1rt1ctiu11 people .feel tuwanls tlitt tf!um nnd their

moli\-ation to remain liU!mbers" (.Afc:Slw11e, Steen & Ttt.w . 10J 5. p. 200).

1he stnff are clearly not comnutted to their team's goals or tasks, and do not .show
a

seJL~e

of pride. The staff express dissatisfaction and social loafing because they

are perfom1ing at a lower

~eveL

In addition, this seems to have taken effect ever

.since they added additional overtime in then shifts: the employees feel that they
can stretch or enlarge their ta..~ks to till up for the longer work day.

3. \\!hat actions should executives take to correct these problcrns?

Several actions that the executives can taJce to c-01Tect these problems include:

Scl1~ Dircckd Teams

(SDTs)-

c,,o.\s:func:tionaJ ,, vrJ. gruttps that t'n! 01-gani~ed t'r<>tmd worJ. proc:e.\ses,

cowplete wt enrire piece of iurJ. requiring se\-eral imerdepe1ident tasJ.s.
anJ han! . ubsumtial ttutonona

ol~r

(JWcSJume, Steen & Tastt, 1015. p. 107).

the exe<.'tltion uf those tasks

This method is smtab)e for ArbreCorp because they work around a manufocn.ll'ulig
(process) line. Executives shou'd realize, that this may be favorable for the packaging
department to solve their

~ow

productivity because we are aware that they did not have

any supervisors.
"One of tht! mo.u popttlar team buihli11g

acti\'ifie.~

oUered h.\ Calgar_\-

based. Canadian OutbacJ.. Adwmtures & E\e1Us is flw "Ama::ing Chttse."

Jhe Amazing Chase c:o111bine.') planning. s1rategy, c_u1mmmic:aliun, and

teanm-'orJ.. ... gelfillg expo.rnre to others in ott1' depa11men.1 that tlu:v do not
work day-t<Nlay i.') ke,Lt (Mc:Sliane. Steen &

Ttt~a.

2015. p. 107).

from this quote we see that SOT's could have a positive impact in he lpi ng the
packaging depamnent have autonomy .i f executing and completmg their requ~red

wort.

Action Teams

"1'1oms that pro\.ide rer.:ommewlations to d1td\i011 maJ..er. : iuc:lude

commiflee.i:. ad\i. ''1')' cowidls,

~1..ork

council., and re\iew pwiels; may be

tempomry. hut oft'-'" permanent. sume ui1hfrequ(.n11'Y.Jlctfiun u/ member.')

(Mc:Slume. Steen & Tastl, 1015.p. 191).

In tlus case. it scaces that the packaging department have a stockpile of finished product.

1 his raises mventory costs as we1l

from outside

e l ement~

a.~

increases the risk that the goods will be damaged

{e.g. moisture). furthermore. executives shou ld priontize and

solve the problem of finishing the production of the goods that is bemg stockpiled.

Hiring suptrvision for tht packaging dtpartmtnt

In this case, it stated that other deparnnent' didn' t have this proMem. It 1s revea led that
all other departments, with the exception of packaging. have a supervisor on every \\rork
shift. Therefore, it is evident to assume that this department needs a 1eadership role
which will itlspfre and support teamwork, ""whipping" the slacking worker into shape for
mstance. In the ca.'e it states:

"Although they are pwu:tuaf and producth''- in otlte1 Jeparwunus. tluse

temporillJ' ewploJ:ees . . 001i adopt Jiu puc~aging crew's illfonua/ . dwdule
when a.').')igned to that depanmenf (NlcSJwne, Steen & Tasa, 1015, p.
115).