PAMANTASAN NG LUNGSOD NG MAYNILA
(University of the City of Manila)
Intramuros, Manila

MFG 524
CONFLICT MANAGEMENT IN AN ORGANIZATION

A
CASE STUDY
RELATED TO CONFLICT MANAGEMENT

Submitted to:
Dr. Reynaldo C. Sanchez Professor

Submitted by:
CATOR, Randxell D. 2011-207575 DINCOL, Mark Alexis GUTIERREZ, Rachelle PONCE, Christian

12 March 2016 INTRODUCTION
Lew-Mark Baking Co. manufactures cookies, crackers, candy and baked items for the food industry. Founded in 1953, the company is from a small town in western New York. It has around 200 workers as manual labor. The company produces over 50 varieties of soft cookies. The company focuses on the high quality of products which developed a strong marker niche for its products. It focuses in the hygiene of its consumer which is why the company markets its cookies as “good food” with no additives or preservatives. The company has concentrated on the product, customers, production process, inventory, quality, introducing new products and areas of potential improvements.
In the case, the company has adopted all possible technologies as per the concern of the health of its customer. It can be noted that the target customer of the company is the younger and older age people.

Production Process of Cookies
The production process called batch processing system is used by Law-Mark Baking Co. The process necessitates the company to obtain orders from distributors so that appropriate amount of ingredients can be calculated for mixing process. This process then, requires sending the ingredients to giant mixing machines. The cookies are then transferred onto a conveyor belt and sent into huge ovens to increase the productivity as well as some cookies being cut on an angle saves spaces for increasing productivity. Finally the cookies are baked and cool down. The packaging of the cookies is done manually by the workers.

Two Ways Company Used to Increase Productivity Firstly, by creating diagonal shape of cookies without fillings leads to increased productivity as more cookies can fit in the container than any other shapes like straight or circle. Secondly, they increased productivity by investing in longer ovens. Now, the increasing length that is 25feet led to the increased number of cooking capacity and also saved costs of the company. More cookies were baked at one time which saves the time, cost and energy.
As the company is situated at the small town of New York City, the size does matter. People in small town have less job opportunities so this why if automated machine was installed it would hamper the town badly, economically. However, in context of operating in large city, it is obvious that there would be high demand and to be able to meet the demand it would be necessary for the company to install such machine since it is hard to pack all the boxes of cookies manually.

Factors to be Considered While Judging Quality of Cookies
A consumer would want to pay extra for the quality product. As a consumer, I would consider the following factors while purchasing cookies: * Manufactured date and validity of product * Ingredients * Packaging * Taste (without color or preservatives) * Comparative price of product

Factors and Benefits of the Policy
As the cookies are daily consumable product, its life span is short. The cookies are not meant to be healthy if they were held for longer time. The policy to maintain lower inventory would save the holding cost. Also, the chances of expiry and damage would be avoided.

Merits and Demerits of Not Using Preservatives in Cookies An artificial additive would be harmful in context to hygiene and health of consumer. It consumption rate also expands when there are no preservatives in the cookies, as health conscious consumer would prefer to eat fresh every day. Adding color to food is an artificial act that may cause internal damages to health of people. On the contrary, preservatives add the life to the cookies. So it can be consumed for few more days than the natural product, there comes the matter of fast expiry. Colors and extra preservatives may also cause damage to the machines of the company. This could lead to maintenance cost or even replacement cost to the company.

Company’s Strategy
The target customer of the company is the young and old aged group. They know what should be produced for them. Old age people prefer less sugar as they are more prone to diabetes and other diseases. So by not adding colors or extra preservatives, they are focusing and caring about the health of their target groups.

I. VIEWPOINT * Lew Mark Production Head

II. TIME CONTEXT * Present

III. PROBLEM STATEMENT * The conflict about the automation of packing of cookies resulting to a possible decrease of manpower

IV. STATEMENT OF THE OBJECTIVES a) to be able to increase the production rate of the company b) to be able to maintain the high quality of cookies c) to be able to contribute economically

V. ASSUMPTION

VI. AREAS OF CONSIDERATION
INTERNAL
a) STRENGTH

* The company focuses on the high quality of products which developed a strong marker niche for its products * It focuses in the hygiene of its consumer which is why the company markets its cookies as “good food” with no additives or preservatives * The company has concentrated on the product, customers, production process, inventory, quality, introducing new products and areas of potential improvements. * Customer of the company is the younger and older age people. * Maintaining lower inventory saving the holding cost.

b) WEAKNESS

* As the cookies are daily consumable product, its life span is short. * People in small town have less job opportunities so this why if automated machine was installed it would hamper the town badly, economically. * Low inventory

EXTERNAL a) OPPORTUNITIES * Their primary customers are younger and older age people b) THREATS * Many rival cookie companies

VII. ALTERNATIVE COURSE OF ACTION

a) Automation of packing of cookies and providing seminar and training about the sales and reassignment of workers to sales department b) Semi-Automation of packing c) Automation of packing

VIII. ANALYIS

| COST | EFFICIENCY | MANPOWER | ACA 1 | 3 | 5 | 5 | ACA 2 | 4 | 5 | 3 | ACA 3 | 3 | 5 | 1 |

1 – LOWEST
5 – HIGHEST ACA 1: Automation of packing of cookies and providing seminar and training about the sales and reappointment of workers on sales department * In ACA 1 providing a training and seminar to the workers and reassigning them to the sales department ( for example promodizing) it would benefit the workers the most since none of them would be removed also contributing to the goal of Lew-Mark Baking Corp. of providing work to nearby townsmen, Also adaptation of automatic packing would result to a higher productivity
ACA 2: Semi-Automation of packing * In ACA 2 the idea of semi-automatic packing is having the machine operating at a distinct time only. For example the machine would operate from 8:00 am to 12:00 nn while from 1:00 pm to 5:00 pm they would operate manually this is to lessen the cost in electricity charges and maintaining the manpower intact.

ACA 3: Automation of Packing * In ACA 3 the machine would operate full-time from 8:00 am to 5:00 pm this would lead to a higher productivity since the packing is much faster than manual the drawback of this ACA is sacrifice should be made removing majority of the workers in order to increase the production rate.

IX. CONCLUSION

The company should also concentrate on changing technology. One must adopt techniques that increase productivity. Company must have different operating strategy as per the demand and environment of the market. Therefore, strong supply chain must be built for effective production. Reassignment of the workers from the packing would surely make a greater outcome rather than firing the majority of the workers and that’s against the goal of Lew-Mark Baking Corp. that they must help economically by providing job opportunities for the townsmen. X. PLAN OF ACTION

STEPS | | | | | | 1. Ordering of the machine for automation of packing | | | | | | 2. Inspecting the machine upon arrival | | | | | | 3. Providing seminar and training for the workers | | | | | | 4. Assigning of workers to sales department | | | | | | 5. Installing the machine | | | | | | 6. Automation of packing | | | | | | 7. Maintaining of machine | | | | | |

1. Ordering of the machine for automating the packing 2. Inspecting the machine upon arrival 3. Providing seminar and training for the workers 4. Assigning of workers to sales department 5. Installing the machine 6. Automation of Packing 7. Maintaining of machine