Question: Please Define All Three Answers Clearly , i need 3 different answers for different questions. don't mention all in one answer only. Please read the
Please Define All Three Answers Clearly , i need 3 different answers for different questions. don't mention all in one answer only.





Please read the case study and write your own answer for the three questions mentioned at the end of the case study Instructions 1. Answer each questions in 4 to 5 sentences 2. Use separate pages for each questions 3. Submit the PDF version by Steven L. McShane, Uninersity of Newcastle (Anstralia), amul Daial Lebeter, Ilydro One (Ontario) ArbreCarp Ltee is a sarsmill operation in Quebes that is caned by a major forest products company but operates independently of the parent company. It was built 30 zears ago, and completely updated with new machinery five Years ago. ArbreCorp receives raw logs from the area for curting and planine into building-grade lumber, mostly 2 -by 4 and 2 - hy-6 pisees of standard lengths. Higher-erade logs leave ArbreCorp's sawnill department in finished form and are sent directly to the packaging department. The rensaining 40 percent of sawinill output are cuts from lowergrade logs, requiring further work by the planing department. ArbreCorp has one general manager, 16 supervisors and support staff, and 180 unionizsd employses. The unionized employees are paid an hourly rate specifled in the collective agreement, whereas management and support staff are paid a monthly salary. The mill is divided into six operating departments: boom, sawmill, planer, packaging, shipping, and maintenance. The sawmill, boom, and packaging departments operate a morning shift starting at 6:00 a.II. and an afternoon shift starting at 2.00 p.m. Employees in these departments rotate shifts every two wetss. The planer and shipping departments operate only morning shifts. Maintenance employees work the night shift istarting at 10000p.m Each departuent, except for packaging. has a supervisor on every work shift. The planer supervisor is responsible for the packaging department on the morning shift, and the sawmill supervisor is responsible for the packaging department on the afternoon shift. Horaver, the packnging operation is housed in a separate building from the other departments, so supervisors seldom visit the packaging department. This is particalarly true for the afternoon shift, because the sawmill supervisor is the furthest distance from the packaging building. PACKAGING QUALITY Ninety percent of ArbreCorp's produet is sold on the international market through Boismarche Ltbe. a large marketing agency. Boismarche represents all forest products mills owned by ArbreCorp's parent company as well as several other clients in the region. The market for buildineerade lumber is very price competitive. because there are Ninety pereent of ArbreCorp's produst is sold on the international market through Boismarche Ltos. a laree marketing agency. Boismarchb represents all forest prodacts mills owned by ArbreCorp's parent company as well as several other clients in the region. The market for buildingerade lumber is very price competitive, because there are numerous mills selling a relatively undifferentiated product. Howewer. some differentiation does oecur in product packaging and presentation. Bugers will look closely at the packaging when deciding whether to buy from ArbreCorp or anocher mill. To encourage its clients to packnge their producrs better. Boismarche sponsors a monthly package quality award. The marketing agency samples and rates its clients' packages daily, and the sarsmill with the highest score at the end of the month is awarded a framed certificate of evcellence. Package quality is a combination of how the lumber is piled (eg defects turned in), where the bands and dunnge are placed, how neatly the stencil and seal are applied, the stencil's accuracy, and how neatly and tightly the plastic wrap is athached. ArbreCorp has won Boismarche's packagine quality award seweral times oner the past five years and received high ratings in the months that it didn't win. However, the mill's ratings have started to decline over the past year or two. and several clients bave complained about the appearance of the finished product. A few large customers switched to competitors' lumber, saying that the decision was based on the substandard appenrance of ArbreCorp's packaging when it arrived in their lumberyard. BOTTLENECK IN PACKAGING The planer and sammilling departments have significantly increased productivity over the past couple of years. The sawnill operation recently set a new productivity record on a single day. The planer operation has increased productivity to the point where last year it reduced operations to just one (rather than two) shifts per day. These productivity improvements are due to better operator training, fewer machine breakdowns, and better selection of raw logs. (Sawmill cuts from high-quality logs usually do not require planing work.) Productivity levels in the boom, shipping, and maintenance departments have renained constant. However, the packaging department has recorded decreasing productivity over the past couple of years, with the result that a large bncklog of finished product is typically stockpiled oatside the packaging building. The morning shift of the packaging department is unable to keep up with the combined production of the sawmill and planer departments, so the unpackaged output is left for the afternoon shift. Unfortunately, the afternoon shift packages even less product than the morning shift. 50 the backlog continues to build. The backlog adds to ArbreCorp's inventory cosss and increases the risk of damaged stock. loge 229 ArbreCorp has added Saturday orertime shifts as well as extra hours before and after the regular shifts for the packaging department employees to process this backlog. Last month, the packaging departnent employed 10 percent of the workforce but accounted for 85 pereent of the overtine. This is frustrating to ArbreCorp's management, because time and motion studies recently confirmed that the packaging department is capable of processing all of the daily sawmill and planer production without overtime. With emplogees earning one and a half times on double their regular pay on overtime, ArbreCorp's cost competitiveness guffers. Employees and supervisors at AubreCorp are arare that people in the packaging department tend to extend lunch by 10 minutes and coffee breaks by five minutes. They nlso typical ly leave work n fen minutes before the end of a shift. This abuse has worsened recently. particularly on the afternoon shift. Employes who are temporarily assigned to the packaging department also seem to participate in this time loss pattern after a few dags. Although they are punctual and productive in other departments, these temporary employees soon adopt the packaging crea's informal schedule when assigned to that dejartment. ArbreCorp has added Saturday overtime shifts as well as extra hours before and after the regular shifts for the packaging department employees to process this backlog. Last month, the packaging department employed 10 percent of the workforce but accounted for 85 percent of the overtime. This is frustrating to ArbreCorp's management, because time and motion studies recently confirmed that the packiging department is capable of processing all of the daily sawmill and planer production without overtime. Wath employees earning one and a half times or double theit regular pay on wrettime. AubreCorp's cost conpetitiveness suffers. Employees and supervisors at ArbreCorp are aware that people in the packaging department tend to extend lunch by 10 minutes and coffee breaks by five minutes. They also typically leave work a few minutes before the end of a shift. This abuse has worsened recently, particularly on the afternoon shift. Fmployees who are temporarily assigned to the packaging department also seem to participate in this time loss pattern after a few days. Altough they are puretual and productive in other departments, these temporary employees soon adopt the packaging crear's informal schednle when assigned to that department. Discussion Questions 1. What symptomis) in this case suggest that something has gone wrong? 2. What are the main causes of these symproms? 3. What actions should executives take to correct these problems