Treadway Tire
Treadway Tire
Treadway Tire
Company':
1. What is the relationship between line foremen at the Treadway's Lima Plant and other
groups within the plant: general supervisors and area managers, top management, the
union, hourly workers, each other?
2. How do line foremen feel about their jobs and why?
3. What are the consequences of those feelings?
4. What are the elements of the work system that contribute to the problem?
5. What action plan should Ashley Wall recommend?
This is a group assignment. The deadline for submission of this analysis is August 21, 2022
(EoD).
The Treadway Tire Company: Job Dissatisfaction and High Turnover at the Lima Tire Plant
Challenges
skyrocketing raw material costs (55% of cost and petroleum derivates )
oil price<25 $ in 2003 to 92$ oct 2007
intense global competition.
Turnover over can be increased by increasing productivity
Serious morale issues had brewing for time with the line-foreman segment, their dissatisfaction was
beginning infect the entire plant. Wall's thoughts swirled around myriad factors causing the
problems
Union USw and later merged with United ruuber workers in1995.- dictates wages payrates schedule
of increase benefits health/ safety.
Expansion for $100million $in 2000. For increase cap and new manufacturing tech.due to which top
in productivity and quality. If turnover prob solved it will be number one and low cost prod in NA
2006, Treadway shut down the Greenville- plagued outdated week so volume to lima
Most employees Lima worked 12-hour shift-either from am 7:00 or 7.00 to 7:00 am-with two breaks
per shift a half-hour for meals.
Continuous operations allowed Treadway to amortize the substantial fixed costs of running plant.
By running two 12-hour shifts instead of three 8-hour shifts, company was also able reduce
headcount, capturing significant cost savings.
The hourly line-production employees at supervised by salaried, non union, floor-level managers-
line foremen(50)
foremen Duties :
Goal: 60% internal bins, 30% new college graduates, and 10% company transfers"
Thought to be considered
According to Wall "Our most successful general supervisors and area managers have risen from the
foreman ranks. However, currently there do not seem to be enough people in the foremas position
with the potential to move up to the next level of management In addition, none of the hourly
employees that have shown an interest in the foreman position have a college degree Although I
agree with Treadway headquarters that we need to increase the percentage of college graduates
and inter-company transfers.
Since Wall had been inred, she had made an effort to increase the percentage of external
candidates with college degrees 8/23 are college
The job of line weman at Lama was a daily challenge, requiring foremen to juggle and resolve a
variety of personnel, resource, and administrative issues in a 12-hour shift
conflicting b/w: management, the workers, and the union
plant manager Bellingham: Meeting, performance goals is the most important duty of the line
foreman.
Daily report on line area of the previous day's actual performance VS forecasted performance was
circulated to all line foremen, GS,AM and the plant operating committee
Metrics: labour hours per unit, units completed and units rejected owing to quality issues
the line foreman was subject to a severe tongue lashing, and usually threatened with a poor
performance review
A foreman's top priority was to start the are production line each work day and ensure that no
1.technical issues would stop production
quickly fix unresolved equipment and quality issues from this previous shift
Morale
Hiring
Training:
As of November 2007, new line foremen received only informal training, at the discretion of the
general supervisor and area manager.
the tried-and-true management style from their own days as foremen
. Some foremen don't have a clue what industrial engineering is, or how to track their hours. They
don't know how to manage a dispute, and they know less about their legal rights than the unionized
Can be prevented if foreman could figure how to get along with hourly people
workers do. A host of problems could also be prevented if the foremen could figure out how to get
along with the hourly people.
Wall had been trying to create a new, month-long rotational training program for line foremen The
program would assign area managers as formal mentors and expose the new line foremen to the key
processes in the plant. The new foremen would spend a day with Payroll to learn about problems
with time sheets and paychecks, and a day with Human Resources to cover information on union
contracts and disciplinary issues. However, due to budget cuts in late 2007, Bellingham decided to
put this program on hold, stating, "I understand we have to do a better job of training our foremen.
They are often working with little knowledge of the correct way to handle labor situations I like the
idea of a formal training program, but it not feasible in the context of our current cost cutting
mandate"
The line foremen were evaluated annually in a performance review by their general supervisor (see
Exhibit 6 for sample performance review). According to Bellingham, there were two factors on which
the general supervisors judged the line foremen: "their ability to meet or exceed forecasts, and how
they manage and train their hourly workers." The overall performance measurement system was
very informal. In the words of Herb Adams, "As long as you meet targets without aggravating the
union or management too much, you're fine."
At Lima, the general supervisors were traditionally promoted from foremen positions, and area
managers were usually promoted from general supervisory positions. In 2007, one line foreman had
been promoted to general supervisor, and there were no openings for the area manager position
According to Tom Hamilton, another general supervisor, "My line foremen just don't see any way to
move up at Lima. I always recommend the guys with the most long-term management potential
to Human Resources, but whenever there's a general supervisor vacancy, someone else-usually
some college grad-gets hired" It was understood that no new salaried positions would be created
at Lima in 2008. Any openings would be due to retirements, promotions, and other job changes.
Reading through her personnel files, Ashley Wall knew the problem of turnover in the line foreman
position-affecting a third of the salaried work force-was a complicated issue for Lima management to
address. Morale and productivity were imperiled. The plant was not satisfactorily developing new
managers. Relations between management and the union were threatened.
Wall quickly realized she would need to work through the holiday shutdown in order to be ready to
give the plant manager her recommendations on January 2. She needed to develop a thorough
analysis of the root causes and a specific plan to address these issues. With less than five weeks to
develop a recommendation, she began to search her personnel files to gain a deeper understanding
of the problem and what actions had to be taken