QUESION:Getting caught up in distorting attachments?

CASE STUDY: The NewYork Shoe Company

Key Players in the Case Study

Bill Deeter: Operations

Mark Lu: Designer

Steve Van: Marketer

Rob Smith: Supervisor

The Beginning

When Bill Deeter graduated with his degree in business from Harvard University, he eagerly joined with two of his classmates to start a new company for the manufacturing of, what they hoped would be, a new line of womens shoes. Operator Bill Deeterwould run the manufacturing facility as he had some experience with this in growing up in his fathers shoe business in Seattle. His two partners, Designer Mark Lu and Marketer Steve Van, would look after the design and marketing work. They pooled what meager resources they had and borrowed money from their parents to buy the needed start-up equipment, and began their business.

The Plan

Operator Bill was eager to get started. He hired an experienced supervisor, Rob Smith, from a neighboring watch manufacturing company to manage the plant and a dozen workers whom he would train to run the equipment. Already, Designer Mark Lu had several designs ready for production and Marketer Steve was well on the way to getting some important sales through large retail outlets in NewYork, Vancouver and Toronto.

Meticulously, Bill took each of the workers, assigned them a job in the production line, and then showed them how to operate their machines. Supervisor Rob watched carefully what was being taught so that he could ensure that the workers met Bills standards for quality control. Since Marketer Steve was pressing Operator Bill for some sample products to show prospective retailers, Bill pushed the workers to learn their trade quickly. Within three weeks, they had several samples ready for Marketer Steve to show to retailers.

The Operation

Bill decided on five designs that the workers could produce easily and quickly. When Bill stood by the workers on the machines, he was able to assist them in overcoming problems. But Supervisor Rob resented Bills interference. Rob told Bill, You hired me to supervise so let me do my job!

Bill backed off and spent more time in his office designing future business plans and looking over the finances. Freed from Bills oversight, Supervisor Rob drove the workers to produce shoes quickly and set high production targets.

Failure would not be tolerated. Workers who did not keep up were yelled at and embarrassed in front of their colleagues. When one of the workers showed up late one morning, he was fired on the spot and two other workers were arbitrarily assigned his work on top of their own, then yelled at for not keeping up. When another worker dared to ask for help, he was fired for incompetence and Supervisor Rob hired a relative of one of the workers to replace him.

The Outcome

Shoes were being produced but - only one of the five lines was actually selling. The rest became stockpiled inventory stockpiled for future sales. Bill was worried about the extensive inventory. Space was at a premium but more worrisome: the quality of the shoes.

Bill complained to Supervisor Rob.

The stitching was not always even on the shoes that her wanted to take to retailers.

The die lots on the leather received from the supplier were flawed and had not been removed from the production line.

Shoes made from that leather would have to be sold at a discount. When Bill discovered these mistakes among the inventory, he was not pleased and rudely fired Supervisor Rob in front of the other employees. Rob tried to say that he had not been given the right kind of workers, but Bill would hear none of his wining. Bill said to Rob, I trained the workers properly, so thepoor qualify is your fault!

The End of the Company

Bill would get back onto the production floor to see that the quality that he wanted was met. When he had to attend to office business, which was often, he would put on of the workers, Larry, in charge. But Larry was a friend of the workers and did not want to push them to meet the production quotas, lest they got mad at him. He had trouble keeping up himself, so how could he expect others, especially his brother-in-law, to do the same. Meanwhile, Designer Mark who was now producing more elaborate designs that would require greater attention to detail to manufacture, had convincedMarketer Steve that he ought to be selling retailers the new designs; forget about the stockpiled inventory. In just over a year since the business had been launched, the financials did not add up and the shoe business was forced into bankruptcy.