HRD and change at FumeGo Ltd
FumeGo Ltd manufactures bespoke fume-cupboards that are used in research and development processes within laboratories. FumeGo’s main customers are the pharmaceutical industries and universities. The cupboards allow experiments to be conducted in a safe environment. They require fume extraction units, plumbing and electrical systems to be designed and fitted. The configuration of the systems fitted depends on the client’s needs. Individual specifications have to be incorporated into each job. Each cupboard is therefore potentially unique, which requires flexibility and an attention to detail within the manufacturing process. Although FumeGo designs, builds and delivers the finished product, the firm is not involved in the installation of the cupboards. The company consists of 220 personnel, 175 of whom work on manufacturing processes. The remainder work in the sales department, design department and the support function, which includes payroll, accounts, FIRM, and administration. The manufacturing process is divided into several sections. These include the sheet metal cutting and folding for thie cupboards, protective coating application, initial assembly, plumbing, and electrical sections. Most people in the supervisory, sales and design roles in the organisation have been there for some time, but labour turnover on the shop floor is quite high.
A new managing director has been appointed after a period that has seen the company decline. Although FumeGo has orders for the next six months, the previous year’s financial return was £1.2 million in the red, and there has been a noticeable fall in the number of re-orders from past clients. In addition, the reputation of the company has suffered due to late deliveries, poor quality and a lack of flexibility in meeting customers’ needs. The new MD has been appointed with a view to turning the failing organisation around, winning new orders, and encouraging old customers to return.
On an initial assessment of the company, he has noted that orders are sent to customers despite errors of the manufacturing process that have been logged on final inspection, in order to meet delivery dates. This involves the company in having to rectify problems once the cupboard has been either delivered or installed, and attracts additional unnecessary costs that are borne by FumeGo. He has also noted that the designers liaise with both the customers and the manufacturing supervisors, but that manufacturing is not involved in the specification of the design. He has further noted that there is not a specific quality function in the factory, and that there is a general apathy about the quality of the product produced throughout the factory. Apathy is also evident in the untidy workplaces. The production process does not seem to be efficient and has not been reviewed for several years. The only quality checking that is done is the check of the final product against the original specification, and he is not convinced that the standard of skills within the firm can meet the high level of product specification required. He has also noted that some expensive design features are included in products for aesthetic purposes, but this is not necessarily at the request of the customer. These increase the cost of the product, but do not necessarily increase quality. The design section seems to be most interested in providing the best possible solution, rather than with providing practical solutions and value engineering. Finally, in general, the company seems more interested in manufacturing than customer care, and responsiveness to customers seems to be concentrated in the design department. He has noted a general lack of initiative and poor morale among employees.
Credit:ivythesis.typepad.com
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