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Operational Strategies and Change Management - Case Study Example
The present highly complex business environment and consumer awareness has necessitated the companies to deeply concentrate on their products and its quality. The recent crisis or recession, as it is popularly known, operation management is of critical importance in such times for the survival of the company…
Before being acquired by Rendall Graphics, Preston Plant was going through problems mostly related to the quality of the products, which were surprisingly identified the customer, HP. The company was facing many hardships in producing quality products and no concept of control over the product operations. The existing crisis revolving around the quality of products and business operating under loss, the success would have been only possible with occurrence of certain significant events.
Concern by HP criticizing the work of Preston Plant which was not able to control the quality of its products which was depicted in the control chart prepared by HP itself for Preston plant, which shows that HP was performance of quality was closely monitored by HP though it was not done by the Plant, worked as a alarm bell for the plant management.
Tom Branton, Managing Director, employed cost reduction strategies to bring the company expenditure down by job layoffs and decision was taken to create a portfolio for the plant dedicated to new ideas in order to establish greater confidence in the future sales and an innovative ideas was 'Photowrap' for newsprint that could be re-pulped.