I.

Summary/ Background of the case

Kookaboora Container Corporation (KCC) is a manufacturer of containers of various shapes and sizes
which are used by manufacturers of industrial chemicals, food products, cooking oil, motor oil, and
others. During slack seasons, workers are engaged only from 50% to 75% of their normal working
hours but were still paid in full. At its fourth month, job orders began to pour in and everybody starts
to cover 100% of their working time. On the seventh month, orders were received at more than the
normal capacity, but only one employee was willing to work overtime without compensation even
though the importance of accepting the additional orders was important.

II. Statement of the problem

How can the production department resolve the orders received which exceed normal production
capacity?

III. Objectives

1. To change how Engr. Aisporna’s view on how the company compensates Its workers
2. Recognize fair compensation for the workers
3. To motivate workers to meet the company’s increasing job order

IV. Analysis
 Strengths
1. One of the first ten companies to invest in special economic zone
2. Workers have a daily quota
3. Production department is headed by a licensed mechanical engineer
4. 10 supervisors are graduates of engineering courses with 3 years working experience
5. Minimal wastages wastages in materials and time recorded by the department
 Weaknesses
1. No proper matching of compensation and work load
2. Engr. Aisporna’s anger makes him less objective
3. No proper scheduling during slack and peas seasons
4. Workers do not voice out their thoughts about the management
 Opportunities
1. Technological improvements
2. Company expansion
 Threats
1. Emerging competitors in the economic zone
2. Products with unpredictable prices such as fuel could significantly increase and lead to
additional costs.
3. Job order volume are seasonal
V. Alternative courses of action

1. Provide proper pay to production workers with their output and improve production planning.
By giving workers incentives, they will be more motivated to work. It is only fair to reward the
employees to boost their morale. Proper planning will be able to formulate proper effective and
efficient means to address slack and peak seasons as well as for the management to address
concerns of the workers. The disadvantages of this will be that there will be increased costs of
incentives and planning is costly in terms of money and time.
2. Offer promos and discounts to customers to convince them to change their delivery of goods to
slack season.
The advantage if customers were to change delivery of goods to slack season is that the company
can manage the job orders to be produced and delivered on time, there will be less tension to
work overtime and slack seasons will be minimized. However, there is no assurance of when
orders would be placed, and discounts may decrease revenue and increase expenses.

3. Production should always be at 100% capacity even during slack season to stack up on inventory
for peak season
Having workers produce 100% even during slack season will effectively meet demands. The
company can maximize the employees’ effort since they will be properly compensated. And the
company will be ready to meet orders for the peak season. The disadvantages would be that the
stored inventories may not be what will be ordered during peak season, operating costs would
have increased.

VI. Recommedation

ACA1: provide proper pay to production workers with their output and improve production
planning

Production planning is important especially for slack and peak seasons. With this, the company can
foresee scenarios and come up with solutions for future concerns and be ready to assess the
challenges ahead. This alternative will address short-run concerns as workers will be encouraged to
work since they will be properly compensated for exceeded quotas, as well as long-run concerns of
seasons through proper planning of the company.