CASE ANALYSIS

The Treadway Tire Company, Lima Tire Plant

TREADWAY TIRE COMPANY

In 2006, Treadway
The company was a shut down the
major supplier of Greenville, South
tires to the original The Treadway Tire
Carolina, plant,
equipment Company employed
which had been
manufacturer and almost 9,000 hourly
plagued byoutdated
replacement and salaried staff in
equipment, and
North America
tire markets moved the volume
to the more efficient
Lima plant.
 MAJOR CHALLENGES FACED BY TIRE
COMPANIES IN GENERAL

Raw material costs-Raw material

contributes to 55% of total cost of a tire.
Increase in price of crude oil-Petroleum
derivatives are important ingredients and
price shot from $25/Barrel to $92/Barrel.
Intense global competition.
 LIMA TIRE PLANT

Some statistics about Lima Tire Plant:

Plant Building encompassed over 1.5 million sq
feet
Situated on 128 acres of land
No. of employees 1120
-970 Hourly
- 150 Salaried
Operated for 24 Hours in two shifts of 12 hrs
each
Production- 25000 passenger and light truck
tires per day
HIERARCHY OF WORKERS

Plant Manager

Supervisor

Line Foreman

Hourly Workers
 PROBLEMS AT LIMA TIRE PLANT

Primary Problem-
Dissatisfaction within line-foreman segment
leading to higher turnout.

Secondary problems-
i)Less number of young graduates from college; so
required skills missing for promotion.
ii)Foreman-Hourly workers relationship
iii)No formal training at any level
 PROBLEM ANALYSIS

Analysis of Primary Problem-

1.)Hectic work schedule-Resolution of
personnel, resource and administrative
issues.
2.)Stress-Pulled by management, workers
and Union.
3.)Pressure-to meet everyday goal
4.)Less Power and authority and
undervalued
SOLUTIONS
Workload of foremen should be reduced.A
seprate department to complete
administrative duty like scheduling hours.

To give more authority to Foremen

Team building activities should be

conducted
CONT...

Increase the number of foremen with

company transfers and having college
degree for diversity

Implementing knowledge and sharing

within the employees.
PLAN OF ACTION
Workload of foremen should be
reduced

More authority

Team building activity

Increase the number of foremen with company

transfers and having college degree for diversity

Knowledge and sharing within the organisation