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CREATIVE TOYS

COMPANY
GROUP 2:
JEFFREY M. BERTUMEN
MARJORIE MAE M. CRUZAT
WEBSTER M. LAUREANA
BOYCIE F. TARCA
A Case Study Analysis
Submitted to
Prof. Dinah Pura T. Depositario
and
Prof. Nohreen Ethel P. Manipol
University of the Philippines Los Baos

In partial fulfillment of
the requirements
for the
MASTER OF MANAGEMENT MAJOR IN BUSINESS
MANAGEMENT
MGT 231
Human Behavior in Organization

May 14, 2016

Table of Contents
I.

POINT OF VIEW

II.

SYNOPSIS

III.

ANALYSIS OF THE CASE SITUATION

A. Company Analysis

B. Relevant Case Facts 4


IV.

PROBLEM ANALYSIS

V.

PROBLEM STATEMENT

VI.

EVALUATION OF ALTERNATIVE SOLUTIONS

VII.

DECISION / RECOMMENDATION 9

VIII.

IMPLEMENTATION

10

IX.

CONTINGENCY

10

X.

OB CONCEPTS REFLECTED IN THIS CASE


LAYOUTS

11

12

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I.

POINT OF VIEW
In this case, our group deemed to use the point of view of
Mr. John Wilson since he is the owner of the company and has the
power to promote change in the firm.

II.

SYNOPSIS
The Creative toy company is a small firm that produces
small wooden toys. Mr. John Wilson, a carpenter whose hobby is
to create wooden toys for his children started this firm. He
realized that his wooden toys could be marketable in a time
where most of the toy was made plastic, or battery operated and
may be easily broken.

Overtime his firm grew and it was

successful.
Mr. Wilson was trying to figure out if everything was in
order and running well. He hired a consultant to see what they
can do to increase income and production.
After the changes have been made, the production rate
decreased. The consultant and Mr. Wilson tried to understand
why does rearranging the process doesnt produce good results.
At the end, they figured out that the workers wanted a raise to
motivate them to increase their production.

III.

ANALYSIS OF THE CASE SITUATION


Upon discussing the case, we have gotten a clear picture of
the essential contents of the study.

Each analysis has the

relevant theory and course concepts.

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A. COMPANY ANALYSIS

Has low turnover rate because of good wages and fringe

benefits.
All departments have autonomy that they can use their
own procedure and method as long as production orders
are filled on time.

Transportation Department:

The transportation department surpassed all departments

in production for over 12 months.


They produce toy cars (4 workers) and trucks (4 workers) in
the morning and reversed it in afternoon to minimize the

monotony
Has Eight workers who held their job for at least two years
Formed a circular arrangement to let the members

converse with each other.


Transportation department was located between Painting

department and wooden block department.


B. RELEVANT CASE FACTS
Significant Events:

The circular arrangement creates traffic flow to and from

the other departments. (see layout 1)


Mr. Wilson brought a consultant to see what they can do to
increase

income

and

production

without

physical

expansion.
The consultant recommended changing the work area in
the transportation department into eight individual areas
to smoothen the traffic flow. (see layout 2)

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After two (2) months, the rearrangement in layout created


a negative result in transportation department the
productivity has been decrease, but a positive result in
Wooden Block Department, Painting Department and
Shipping and Receiving Department the productivity has

been increased.
They think that having low productivity is just an excuse to

get their attention to have raise


Management wont give raises until they have met their
prior production performance.

IV.

PROBLEM ANALYSIS
Each analysis of the problem should be supported by facts
given in the case.

Here, it is important to search for the

underlying problems.

The old layout does not facilitate efficient traffic flow


The productivity of the Transportation Department has

declined after the new production layout is implemented


Both the Plant Manager and Mr. Wilson do not know what the

real problem is.


Monetary issues have been raised.

PROBLEM FLOW DIAGRAM


This section will introduce the diagram which requires
understanding a step-by-step process to breaking down a
problem.

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V.

PROBLEM STATEMENT
So as we emphasize the predicament, we have come up
with a problem statement: How to motivate the Transportation
Department in order to restore their productivity?

VI.

EVALUATION OF ALTERNATIVES
As we look back on the problem statement that we insist
on, again it is the question: How to motivate the Transportation
Department in order to restore their productivity? we have
devised various alternative solutions and all alternatives must be
thoroughly evaluated, and we rate it with different criterion to be
shown on a diagram later.

A. Giving Raise and Setting Performance Appraisal


Money is a direct reward for employees performance and
considered as a motivator that can increase level of productivity.
Workers looked into the equity between their inputs in the job
and the return they receive from it.
To maintain the level of productivity, management must
consider raising the salary of employees to satisfy their need.
Although it will add expense for the manufacturing cost, the
money allotted for it will be regained overtime because the
production will increase as workers are more willing to work and
exert their best effort in everything they do. Its advantageous
for both the workers and the company.
Furthermore, the management can consider giving rewards
to high performing employees. Based on the evaluation criteria
(as agreed upon by both employees and management), workers
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effectiveness shall be evaluated periodically and see if work is


done in accordance to the set deadline.
B. Rearranged Transportation Department Work Layout
Straight-line Traffic Layout (See layout 3)
The traditional means for assembly line production where
all parts being assembled are strategically aligned and the
product moves down the line from one station to the next until
product is completely assembled.

Straight-line production

mandates physical requirements not always present in company


facilities.
The transportation department would also benefit from this
change as it will make the receiving and dropping off of the
materials and products much more efficient. They will only need
to move one way traffic and the materials can be passed from
each workstation. The finished products traveling one way to the
loading docks and the materials to make the toys will come in
the same way from the loading dock. The same forklift can drop
off and pick up the toys therefore making the process much
faster. A faster, more effectual department means more toys will
be made increasing the companys revenue.
The problem with the new layout is that both the receiving
and shipping bay are in the same place that may cause traffic
jam.

Also, the receiving bay is far from the wooden block

department, it may cause delay for the forklift operators to


deliver the needed supplies to the area.
This method may impose cost if there is no available
receiving area in the other side of the production.
C. Rearranged Transportation Department Work Layout
Two-line Traffic Layout (See layout 4)
The working layout of Transportation Department is an
important factor that affects the way the employees perform
their jobs, although frequently overlooked. When it comes to
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maximizing productivity, healthy level of communication and


personal motivation in the workplace are connected with the
actual physical layout of the department.
The Transportation department layout must be close to
each other in such a way that individuals make it easy to consult
one another on the toy they are working on. But on the other
hand ensure that the department will not affect the productivity
of the other departments. Before the rearrangement of the
layout of the transportation department, the team is working
efficient and productive. When the workers were all working
together, their productivity levels were very high. The only
struggle with the work area was picking up the finished toys and
giving the department workers their new materials, especially to
pick up the finished products from the workers near the walls.
A solution to the communication problem would be to reorganize the workstations for both the cars and trucks workers
(Team-A and Team-B). Place the workstations of workers of cars
in the morning and trucks in the afternoon Team A at the side
of the department, and the worker of the trucks in the morning
and cars in the afternoon Team B in the other side of the
department (see layout 4). They would still be able to
communicate with each other and see the progress of the
department.
DECISION CRITERIA
Decision Criteria

Weig
ht

Alternat Alternat Alternat


ive A
ive B
ive C

1. Cost Effectiveness
2. Ease of
implementation
3.
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4.
TOTAL

1.0

Table 1: Using a numerical rating of 1-3, 3 as the highest,


we have come up with this table evaluation.

VII. DECISION/RECOMMENDATION
After evaluating the decision criteria the group therefore
recommends

Alternative

C,

that

is:

Rearranged

Transportation Department Work Layout Two-line Traffic


Layout.
The physical layout of a workplace directly affects how
workers move about the office and connect. Workers are more
likely to interact with their coworkers in spaces that are more
accessible.
Workers interacted more frequently in the old layout than
they did in the new workplace layout. The revised layout created
distance between workers in the transportation department.
Studies show that the greater the distance between employees,
the less likely they are to communicate.
The groups recommended change on the layout, in a way,
maintains the interaction between workers assign for a particular
type of transportation toy. With the proximity of four workers, it
promotes

face-to-face

interactions

and

created

interconnectedness among themselves. Thus, physical layout


became conducive to teamwork that may restore the production
level.
One of the important elements that were not considered
by the revised layout is that workers preferred an easiest method
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of communication and continuous interaction with each other


which lead to increase productivity and collaboration.
Similar to the original lay-out, the four members in the
transportation

department

managed

production

among

themselves in a way they can communicate easily and interact


with other worker. The layout was conducive to teamwork which
resulted in the steady increase production of toys.

The

informal

group

is

somehow

maintained

in

the

transportation department and workers within each type of


transportation will be periodically moved from each section to
have an opportunity to have a new set of teammates.

VIII. IMPLEMENTATION
IMPLEMENTATION
1. Identify and evaluate how
employees interact with
each other
2. Evaluate the layout of the
department
3. Report the Evaluation to
Mr. Wilson
4. Implement the new layout
5. Re-evaluate
how
employee works

the

CONCERN
OFFICE

PERIOD

Admin

1 Month

Admin

2 3 weeks

Admin

1 week

Management
Committee

1 Month

Admin

1 Month

IX. CONTINGENCY

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In the decision criteria, the second best appears to be the


Alternative B: Rearranged Transportation Department Work
Layout Straight-line Traffic Layout. Facility layout must be
considered very carefully because we do not want to constantly
redesign the facility.

X. OB CONCEPTS REFLECTED IN THIS CASE


Interpersonal Behavior and Group Dynamics
The social process by which people interact face-to-face in
small groups.
Based on the case, Transportation Department has
established an informal group within their organization by having
the autonomy to impose their own procedures and methods.
They also have a good working relationship inside and outside
the work area. By having the circular arrangement, it allows
good communication with each other.
The negative effect of this informal group is that
employees may resist change, like in the case, after the
production new layout has been imposed, their behavior changed
and their productivity has declined.

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Wooden
Block
Department

Painting
Department

To Shipping
and
Receiving

Worker
Workstation
Traffic flow
Layout 1: Initial Transportation Department Work Layout

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Wooden
Block
Department

Painting
Department

To Shipping
and
Receiving

Worker
Workstation
Traffic flow
Layout 2: Rearranged Transportation Department Work Layout

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TEAM A
WORKERS
Morning: Cars
Afternoon: Trucks
Wooden
Block
Departme
nt

Painting
Departme
nt

To Shipping

Receiving

Worker

TEAM B
WORKERS
Morning: Trucks
Afternoon: Cars

Workstation
Traffic flow
Layout 3: Recommended Transportation Department Work Layout StraightLine Traffic

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TEAM A
WORKERS
Morning: Cars
Afternoon: Trucks

Wooden
Block
Department

Painting
Department

To Shipping
and
Receiving

TEAM B
WORKERS
Morning: Trucks
Afternoon: Cars
Worker
Workstation
Traffic flow
Layout 4: Recommended Transportation Department Work Layout Two-Line
Traffic

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