2.columbus Custom Carpentry
2.columbus Custom Carpentry
instructor’s Manual
When you first join an organization, you will have an idea of what the organization
is like, and there will be a few things of which you feel certain, but your list of
unknowns will be much longer. Each interaction with employees provides more
data, but you will find that not everyone agrees on the facts of a particular situation.
Sometimes you may find that the people you are speaking with do not know the
information you are asking about; at other times, they know a great deal about
the issue but choose to manage the information they provide to you for their own
benefit.
We will not intentionally mislead you in this case, but do not expect everything to
fall neatly into place. Uncertainty, differences of opinion and competing priorities
are the norm in the professional world.
In your role as the HR manager, you are expected to analyze the situation, identify
the problems and develop workable solutions. For the purpose of this case, you are
asked to provide a written and oral presentation to the company president (your
professor). While there is no single best answer, you must identify the key issues so
that the solutions you propose are appropriate to the situation.
“We had talked during your interview about the employee issues we are having, and
I hope your outside perspective will help us get a better understanding of what the
underlying problems really are. I would like to meet again on Friday, and you can
give me a preliminary idea of what you see as the primary issues. After that, we’ll
give you a couple more weeks to develop an action plan to deal with these problems.
That may seem like a very fast schedule, but I want you to jump on this before
your time gets filled up with other activities. I recently read about the concept of
a ‘honeymoon’ during an HR manager’s first 100 days. The article indicated that
during this period, you are able to accomplish things that will become impossible
later. I want—we need—to make the most of this opportunity.”
A couple of videos and reams of benefit forms later, she gives you the employee
handbook and returns to her desk.
“We cannot produce at the incredibly low-cost level maintained by the mass market
manufacturers. We would not get costs that low even if we mimicked their limited
product lines and quality levels. We compete with them by creating styles and
options that they don’t offer. Finding the balance between production costs and
proliferation of models is a continuing struggle.
“We need to cut out the current levels of overtime to maintain our cost structure. It
is not clear why we need this overtime. Our labor hours per unit made have stopped
going down and are even up somewhat. Adding overtime to that increases our labor
cost per hour as well. Turnover has been useful in the past, allowing us to replace
higher-paid workers with more lower-paid new hires, but the pattern seems to be
changing, and now it is our new hires who are leaving. The warehouse manager
wants to increase wages in his area, but that raises our costs per labor hour without
explaining how it will help us get our total costs down.”
“We operate under the concept of mass customization. Using modular parts, we can
produce designs with features that appear to the end user as custom work but have
the manufacturing advantages of mass production.
“The assembly jigs we have developed are the heart of our system. You can think
of them as big clamps. They hold the material in just the right arrangement. If the
assembler puts in the wrong part, the jig will not close, preventing the assembler
from wasting materials. Once the materials are in place, the jig closes and a single
lever pull will drill any needed holes in the right place, in the right size and to
the proper depth. It is fast, mistake-free and simple for the operator. Much of our
assembly is gluing. Here is where the big clamp analogy is the closest. Once the jig
is locked with just a couple of levers, proper clamping pressure is applied at exactly
the right places. Assemblers no longer spend time placing individual clamps. Once
closed, the jigs are tilted upright and rolled on their own rollers to a drying area. If
they are to get painted, the paint hanger goes on before the jig is released and no
one even has to touch the door unit until it is crated. Zero damage and zero waste in
this part of the process.”
“I waste time interviewing and training when I should be working on the crating
jig project that is supposed to reduce our damage ratio and make packing easier. My
best guys can pack better than the jig right now, but I have to train new people all
the time, and some just don’t seem to get it. Crating may not be rocket science, but
putting nails in crooked damages the doors. Miss a corner—and the whole thing
will fall apart the first time we try to move it. People get the idea that because it is
manual labor rather than an automated machine, it is simpler. The opposite is closer
to the truth. My forklift drivers don’t want to do crating because it has so much
bending over and lifting that it is much harder physically than their regular work.
The crating jig should make it possible for less-skilled people to do the crating job.
This will eventually allow us to save money both on labor costs and the cost of
replacing damaged goods.”
“We work directly with the homeowners in the design process, but the builders are
the ones who refer the homeowners, do the sizing, place the orders and install the
product. They are the ones who take the heat for shipping delays or damage. When
they need service, parts or replacements, they want them now, not tomorrow or the
day after. Time is money to contractors. We have to win on design but deliver at a
price that makes our products a better value.”
Our success has come about through the development of various jigs and special
tools to produce replacement antique-styled doors for the restoration market. We
also have a line of contemporary doors that are more aggressively styled than their
standard mass-market competitors. Our proprietary tools and systems allow us to
underprice the build-to-order custom manufacturers and to be profitable at volumes
well below what would be required for profitability in the mass-market arena.
This success has resulted in steady growth over the last few years. We are still in a
single Midwest location, but we now have four buildings and 135 employees. Our
annual sales exceed $15 million.
BUSINESS UNITS
Our employees work in a number of different roles supporting various departments,
which are grouped into four overall units: manufacturing, warehousing,
administration and marketing.
Our administrative group includes corporate accounting and corporate services. The
corporate department is made up of the president, an administrative assistant, the
receptionists and the HR manager. Accounting pays our bills and collects payments
from our customers. It also reports on our financial progress. Our corporate services
group does everything from running the mail room to cutting the grass.
The marketing department includes sales, customer service and new product
development. Sales are the people who get out there and talk with builders,
architects and contractors to create demand for our products. Customer service is
the group that handles everyday contact with our customers. It is responsible for
receiving new orders and for problem resolution. New product development is also
a marketing function. It keeps our products up-to-date and creates the special tools
that allow us to produce more efficiently than our competitors.
Organization Chart
President
Receptionists
Corporate
Sales Preprocessing Receiving
Accounting
Corporate
Customer Service Assembly Crating
Services
New Product
Finishing Finished Goods
Development
Craftsmanship
We demonstrate pride in our work through attention to detail in the design and
consistent production of our products. Each person’s work is not only a reflection
of his or her own character, but of the team’s character as well. Good craftsmanship
creates a lasting impression that reflects on the entire company. It is through our
combined efforts and expertise that we optimize our performance.
Corporate Responsibility
We promise to uphold the safety and health of not only our team members, but
that of our customers and our neighborhoods as well. We do our part to protect the
beauty and environmental quality of our land, air and water.
MISSION STATEMENT
We will be successful if we meet our customers’ needs by providing better products
and services than offered by the lowest-cost providers, but at a better price than
offered by our top-quality competitors. To do this, we must operate more efficiently
than our competitors and offer a superior buying experience.
The company expressly prohibits any form of harassment based on age, religion, sex,
race, national origin, citizenship, disability, military status or sexual orientation.
Interference with the ability of the company’s employees, vendors or customers to
perform their jobs is not permitted. Harassment, regardless of its origin or type,
violates the dignity of individuals and will not be tolerated.
HARASSMENT
We trust that employees of Columbus Custom Carpentry will act responsibly to
maintain a pleasant working environment free of discrimination, allowing each
employee to perform to his or her maximum potential. The company encourages
employees to report concerns or complaints. When management is made aware of
harassment, prompt corrective measures will be taken to stop such conduct.
Employees who are being harassed should confront the harasser immediately and
report the behavior to their supervisor. If the harassed individual feels uncomfortable
approaching the harasser, the problem must be immediately reported to the
supervisor. Any employee who becomes aware that another employee is experiencing
harassment of any kind should report the alleged act immediately. A prompt
and thorough investigation will take place, with violators subject to appropriate
corrective action, up to and including termination.
Position Announcements
The company posts available jobs whenever possible, but we do not post every
opening. This most often occurs when a promotion is given to someone from within
that department. On rare occasions, we may come across an outside applicant that
impresses us so much that we bring him or her in directly. In another unusual and
unfortunate circumstance, we might need to fill a position that is currently filled by
an underperforming employee. However, the company is committed to promoting
from within whenever practical.
Bulletin Boards
To improve communication, bulletin boards are located in the main break room,
the administrative office area and the employee entrance lobby. Postings include
employment laws, environmental health and safety regulations, benefits information,
job openings, and company activities.
Annual Report
The president will present an annual report to employees to discuss profitability and
future plans.
Facilities
A smoke-free break room is available for your use. Automatic vending machines
provide food, snacks and beverages.
Employment of Relatives
The company permits the employment of qualified relatives as long as such
employment does not create a conflict of interest (for example, an employee
reporting to his or her spouse). Judgment may be required in the placement of
related employees, and we generally limit the number of relatives to no more than
two. Employees who marry while employed are treated in accordance with these
guidelines. Thus, if a conflict arises as a result of the marriage, one of the employees
will be transferred at the earliest practical time.
Compensation
Work Hours
The regular workweek is 40 hours, Monday through Friday. The normal work
hours for production and warehouse employees are 7:30 a.m. to 4:00 p.m., with a
30-minute unpaid lunch break, normally taken between 11:00 a.m. and 1:00 p.m.
Part-time employees work hours as arranged. Office employees work eight hours
between 7:00 a.m. and 5:00 p.m., with a 60-minute unpaid lunch break. The exact
schedule is set by your supervisor. Employees are given two 10-minute breaks (one
for every four hours worked) each day. These breaks will be scheduled by your
supervisor based on department needs.
Pay
All employees are paid by direct deposit on a bi-weekly basis; a pay stub is mailed to
your home each payday. Please review it for errors so that they can be corrected as
soon as possible.
Hourly nonexempt employees will be paid at their regular rate of pay for hours up to
40 in a workweek. Hours worked in excess of 40 hours will be paid one-and-one-half
times the employee’s regular hourly rate of pay.
Payroll Deductions
The direct-deposit pay stub will show what pay has been earned and what deductions
have been made. The stub should be retained until you receive a W-2 for the year.
Certain deductions are required by law and must be withheld from paychecks. These
include federal income tax (FIT), Social Security tax (FICA), state and, in some
locations, school district taxes. City taxes are withheld only for Columbus. You may
owe additional taxes to your city of residence. Other deductions are optional and
will be taken from your check only if you have signed a written authorization for
these deductions.
Profit-Sharing Plan
Employees are offered a cash (nonretirement) profit-sharing program that provides
employees the opportunity to share in our profits. The employees’ share is based
on operating income less an allowance for reinvestment in equipment and facilities.
Payments are quarterly.
To be eligible for profit sharing, the employee must have been employed on a full-
time basis at the end of the quarter. The success of this program rests with individual
effort contributing to group productivity. When you find ways to utilize time or
Spot Bonuses
An employee who makes a special contribution to profitability may receive a one-
time spot bonus as recognition. All awards are determined by the president on a
case-by-case basis. Employees are encouraged to nominate their co-workers when
they make a special contribution.
Benefits
To be eligible for benefits, employees must be full-time and work a minimum of 30
hours per week. New employees become eligible after 90 days. The group benefits
programs are described more completely in the plan description booklets. Brief
summaries are included in this section of the handbook. In case of contradictions
between this handbook or other benefits summaries and the information that
appears in the master plan documents, the master contracts or master plan
documents shall govern. For more complete information regarding our benefits
programs, please contact the receptionist.
Retirement Plan
Columbus Custom Carpentry offers employees a retirement program called a 401(k)
plan. This plan helps employees save for retirement through payroll deductions and
supports employees’ efforts with company-matching funds. Employee savings in the
401(k) are deducted before tax, resulting in more money going into your account
than the amount of reduction in your take-home pay. The company match is 100
percent of the first 2 percent of savings and 50 percent for 3-4 percent of savings,
then 25 percent for 5-6 percent contributed. Employee contributions are held in a
trust separate from company assets, except in the brief period between deduction
and transfer to the investment company. The company match becomes vested (the
employee earns an unrestricted right to the money) based upon years of service.
After two years, the employee is 40 percent vested, 60 percent after three years, 80
percent after four years and 100 percent after five years of service. Employees must
complete one year of service to be eligible. See the plan document for more details.
Medical Coverage
The medical plan is a combination of two types of plans—a preferred provider
network and a traditional indemnity plan that does not require a network.
Employees are automatically covered under both and will receive the better preferred
provider organization (PPO) network benefits whenever they use a PPO provider.
Our PPO network offers high-quality care at a discounted price. Benefits provided
under this plan are only for services done by a PPO member. These are referred to as
network providers.
(Source: www.dol.gov/dol/topic/health-plans/cobra.htm)
Life insurance of more than $50,000 is considered “excess” by the government. The
cost of providing this excess coverage is taxable to the employee and will appear on
the employee’s pay stub as “Grp-Life.”
Vacation time will be granted each January 1. By seniority, employees can reserve
one week per year. Once all employees have had the option to choose their first
week, employees may choose to reserve additional weeks by seniority. Supervisors
may limit the number of people on vacation at any one time by department or
position.
Vacation time of up to five days can be carried over to the next calendar year.
Employees terminating employment for any reason are entitled to payment for
unused vacation time when they give their two weeks’ notice.
Holidays
The following are paid holidays. Employees are eligible immediately upon
employment; persons working less than full-time will be paid on a pro-rated basis.
New Year’s Day Thanksgiving Day and the Day after Thanksgiving
Memorial Day One half day on Christmas Eve
Independence Day Christmas Day
Labor Day The day before/after July 41
1
We take the day before July 4 when it falls on a Tuesday; the day after when
it fall on a Thursday; or a personal holiday on your choice of dates when the
holiday falls on other days.
Sick Leave
Nonexempt Employees
Five days of sick leave per calendar year are available to each employee. Sick leave
is earned beginning January 1 each year by all full-time employees who worked a
minimum of 1,500 hours in the previous calendar year. First-year employees receive
a prorated amount. Sick leave is not carried over from one calendar year to the next,
but unused sick time as of the end of the year will be paid out in a lump sum in
January.
Exempt Employees
Exempt employees continue to receive their regular salary until their sick time
or disability exceeds 30 days in a calendar year. After that, they will either go on
disability at 60 percent of pay or be converted to hourly status and made ineligible
Short-Term Disability
When medical documentation proves a need for disability, leave will be granted for
up to six months to a disabled employee. Full-time employees will receive disability
pay at 60 percent of their base pay beginning the first day of an accident or after five
working days of illness. Part-time employees may take leave on an unpaid basis.
Long-Term Disability
Coverage is provided at 60 percent of base earnings for disabilities lasting more than
six months. After two years, continuation of coverage requires that the employee be
unable to work at any job, not just his or her current position. Additional limits exist
for disability due to mental health conditions.
(Source: www.dol.gov/dol/topic/benefits-leave/fmla.htm)
The employee must provide a written request for FMLA leave. This request must
state specific reasons why the leave is necessary and the anticipated start and the
duration of the leave. This request must also be timely when possible—30 days
in advance of the start of the leave. If the situation is an emergency, the employee
should notify his or her supervisor or manager as soon as possible. Supporting
documentation is required.
Bereavement Leave
If a death occurs in an employee’s immediate family, he or she will be paid for time
lost from the regular workweek up to three days (five days if out-of-state travel is
required). Leave will be granted as needed for the death of non-immediate family
members on an unpaid basis.
Jury Duty
Employees called for jury duty are allowed the time off. The company will pay
employees the difference between their regular pay and what they receive from the
court, up to a maximum of 10 days every two years.
Military Leave
When an employee has a military obligation, the company will follow the rules set
forth under the Uniformed Services Employment and Reemployment Rights Act
(USERR A).
(Source: www.dol.gov/COMPLIANCE/LAWS/COMP-USERRA.HTM)
Additional Benefits
Parking
Free parking is available to all. Please be courteous in the parking area. While
the company cannot be held responsible for accidents, theft or vandalism in the
parking area, any employees engaging in such activities will be subject to immediate
disciplinary action up to and including termination. Employees are expected to
observe the parking rules at all times. In addition, the parking areas are company
property, and all company policies apply. Employees will use the parking lot at their
own risk. The company will provide one space for each employee; diagonal parking
is not permitted. Overnight parking is prohibited unless the vehicle is disabled. If
the vehicle is disabled, the employee will be given 24 hours to move the vehicle.
Repairing vehicles on the parking lot will be permitted only in an emergency
situation. Notify the receptionist in either of these situations to ensure your vehicle
is not towed away.
Employees that stay with the company for more than one year after graduation will
be eligible to apply for an additional 25 percent of one year’s costs up to the $5,250
maximum after each year of additional service. Four years after graduation, the
full 100 percent of four years’ tuition will have been collected. Conversely, if the
employee leaves the company within 12 months of completing his or her last class,
the final year of tuition support shall be repaid to the company.
Product Discounts
Employees are permitted to receive company products for personal use at a 20
percent discount from our regular wholesale prices. Resale of these products,
including flea markets, eBay or other methods, is not permitted. The company
reserves the right to refuse a sale to an employee using an unusual or unexplained
amount of product. We understand that an employee building a house may use a
large amount of product in one year, but we would not expect this to be repeated
frequently. An employee with international contacts who believes he or she could sell
our product overseas may act as an overseas sales representative. See the marketing
manager for details on this opportunity.
We comply with all federal Occupational Safety and Health Administration (OSHA)
regulations. It is everyone’s job to help us maintain our good safety record. Signs
alerting employees and visitors to safety issues and responsibilities have been posted
in the plant for your protection. These signs contain safety instructions and must be
followed by all employees and visitors at the company. Report dangerous conditions
or safety hazards immediately.
Smoke-Free Environment
We recognize that smoking in the workplace can adversely affect employees’ health.
Due to the large amount of wood stored in our buildings, smoking is a safety hazard
at our company. In addition, the City of Columbus has enacted an indoor smoking
ban. For these reasons, smoking and the use of other tobacco products is prohibited
in all areas except inside an employee’s personal car or truck. Smoking is not
permitted in company vehicles. This policy applies to visitors as well as employees.
Employees who violate the policy will be subject to disciplinary action. Employees
who wish to report violations of this policy or the smoke-free workplace law
should contact the receptionist. You also have the right to contact the City Health
Department.
Wellness
We offer employees a $100 subsidy toward a fitness membership. Employees who can
submit a log showing 100 days of use of a fitness facility receive an additional $100.
We also pay for 50 percent of entry fees for recreational activities (up to $100 per
year) that include aerobic activity. See the receptionist for details and limitations. We
will pay for 100 percent of the cost of a smoking-cessation program if the participant
remains smoke-free for 12 months following the end of the program.
Eye Protection
Employees and visitors are required to wear safety glasses in the manufacturing
areas. All employees who work in or travel through plant areas requiring eye
protection will be provided safety glasses.
Hearing Protection
Continuous exposure to excessive sound can permanently damage hearing. The
company will provide hearing protectors at no cost to employees. Areas where
hearing protection is required, such as the saw room, will be identified with signs.
Use of hearing protection in other areas is voluntary.
Hand Protection
It is appropriate in many areas of the plant to wear gloves to protect hands from
splinters or abrasions. The company will make gloves available at no cost to
employees. Employees may choose to supply their own gloves if desired. Employees
in preprocessing are required to wear gloves.
Foot Protection
Steel-toed safety shoes are required by all employees working in the plant. Office
personnel who visit the plant must also wear approved safety shoes except in green
zones indicated by floor paint. If in doubt, ask!
Respiratory Protection
Where feasible, exposure to air contamination will be controlled by filtering the
source of the contamination and by ventilation. If this is not possible, respiratory
protection equipment may be required. Employees required to wear respiratory
protection in their jobs must comply with all OSHA requirements. Employees in
other areas may choose to wear respirators as needed. The company will provide
respirators and dust masks.
Operating a Forklift
Forklifts are often used in the production and warehouse areas for material handling
purposes. Because these trucks are operated in areas where employees are working,
only certified employees are permitted to operate a forklift. Forklift certification is
required for advancement in many areas; new employees should watch for postings of
training classes.