TABLE CONTENT

I. Introduction

II. Hovertec case study 1. Problems of Inter-departmental 2. Causes of Inter-departmental 3. Solutions of Inter-departmental 4. Solutions for the Emergency briefing of Loom technicians 5. Extensions – Additional situations

III. Conclusion

I. II. Introduction:
Hovertec Corporation is the famous corporation in England, Scotland and Northern Ireland, which has been manufacturing civilian and military helicopters for nearly 50 years. The profit during 1990 before taxation exceeded £16.5 million and the total sales of over £280 million. Most of 6000 people work in three manufacturing plants. However, the latest technology used in these production and assembly processes, is a relatively slow process. It took 3 weeks for a civilian unit and 4 weeks for the larger and more sophisticated military helicopter. The main bottleneck in the process is the long time taken to assemble the helicopter loom and complete the 1200–2000 connections between the power unit and the numerous helicopter systems and services. A team of 24 loom technicians who have from 8 to 15 years experience maintain the production output.
The 1991 Corporate Plan concluded that: ‘Because of the constricting squeeze on defense projects on the finances of civilian helicopter operators, which appears likely to continue until the world recession ends and general demands picks up, future activity in the three factories will be at a lower level during the next two to three years than seemed likely a few years ago’. Many improved method was created and trialed that no redundancies would occur as a result. Firstly, it is a detailed cost-cutting exercise, with particular emphasis on the loom workshop. Secondly, small groups of five female workers who are 16 to 17 year old school leavers were introduced. Unfortunately, conflicts appeared between the loom technicians and girls.
Notwithstanding, output in the loom workshop continued to decline, and the company began to fall behind on outstanding defense contracts.
The purpose of this report is to document the actions of this company—those that repress low performance. Otherwise, we give an overview of the interaction between the company and their employees whom responsibility has efficiently powers affecting the expression of Hovertec. In order to improve helicopter loom-assembly method, we have done some analysis and find out the problems as below in the main content of this report.

III. Hovertec case study: 1. Problems of Inter-departmental:

2.1. Human Resources:

2.2.1. The loom technicians were unwilling to work alongside the young women on classified defense contracts. 2.2.2. Three of the girls were unskilled, due to lack of expertise knowledge in engineering or electronic system. However, they want to work in a comfortable and different way that leads to the breaking of organization’s systems when they did not unite with the training of their managers. 2.2.3. In addition, besides their lacking of expertise knowledge and skills in engineering and electronic system, those three girls were also irresponsible and did not care about their works that was due to the fact that they had close relationships with different loom technicians.

2.2. Finance:

2.3.4. The redundancy of employees (5 operatives working together instead of one technician), while the amount of money spent for the company’s expenses was too high and illogically. 2.3.5. Company obviously in a financial squeeze.

2.3. Technology:

2.4.6. The product assembly process of loom is sophisticated and required carefulness and in earnest. The loom technicians lacked of taking responsibility for the equipments, which leaded to the breakdowns and reduction of productivity. 2.4.7. The breakdown of equipment was the result of vandalism.

2.4. Operation:

2.5.8. Irresponsibility of manager in dealing with problems in workplace. 2.5.9. There is only one loom technician was punished while those three girls were also related to the breakdowns of equipment.

2. Causes of Inter-departmental: 3.5. Human Resource: * Cause of problem 1.1.1:
The loom technicians were regarded not to be responsible and more of security risk. All of loom technicians are qualified maintenance fitters and the highest-paid section of the workforce after supervisors and management but they do not show their specialized skills when company transfer to a new method of assembling looms which allow unskilled labor to be worked. The loom technicians showed their uncooperation with the young unskilled women and they are claimed for their abuse of power from these girls and vandalism from the managers. All of these causes led to the fell of productivity far below the expected target.

* Cause of problem 1.1.2:
Those girls were unskilled and lack of knowledge in engineering or electronic system because they are too young, only graduated from high schools with no degrees as well as no training from the company. Meanwhile, they received priority and the privileges, such as they were permitted to choose their partners, allowed to change color code when they became bored or started to make errors, given 10 minutes rest pauses.This make them became lazy, spoiled, dependent in power, and tend to self highly appreciated. Otherwise, they are girls; they can have more security risks with hard working and high pressure. Hence, they want to work in a comfortable and different ways.

* Cause of problem 1.1.3:
The first cause for their irresponsibility is that these girls had supports from some different loom technicians because of their close relatives. As regarded, they did not have to worry about any complain when they did not work well. However, the underlying cause in this situation started from the recruitment process. In fact, the Recruiting Department did not check the applicant’s information carefully so that those young girls were classified and put into the position that was controlled by their relatives, and it could make a good chance for them to assist and support those women.

3.6. Finance: * Cause of problem 1.2.1:
Horvotec Company is a large public company. They were very successful in their field and they achieved large sales of over 280 million pound. Although they have variety of workforces bigger than 6000 employees, they still continued to recruit a lot of workers. Besides that, instead of applying the old method to create products, they continued to change methods to assemble helicopter. Despite of bringing positive results such as reducing the assembly time to 2 days, it still had it disadvantages. It caused to the redundancy of employees (5 operatives working together instead of one technician) while the amount of money spent for the company’s expenses was too high and illogically so the company’s budget decreased.

* Cause of problem 1.2.2:
A detailed cost – cutting exercise was introduced, with particular emphasis on the loom workshop, and all overtime working was withdrawn. While the radically new method of assembling looms reduced the assemble time to two working days. 3.7. Technology: * Cause of problem 1.3.1:
Although the product line is complicated and high-risk error, the loom technicians do not have strong enthusiasm and lack of responsibility in carrying out the working process. Because he has to work with five young girls like a team, and their role is a leader. However, these girls not only have no experiences and expertise, but also they did not follow the direction from their leader. They want to work freely and comfortably, leads to the disruption of teamwork. Consequently, the argument and conflicts between loom technicians and the 5 girls appears. Therefore, he felt bored and did not take the supervision for the girls and the equipment that made the reduction in productivity. * Cause of problem 1.3.2:
5 female school-leavers was the main cause which led to the breakdown of equipment. Specifically, they have lack of skill in terms of engineering and electronic system; therefore, they cannot control and operate these computers in a proper way. In contrast, at the beginning, the assembly process was taken by expertise loom technician who had experiences in maintenance and received extensive training from the company. Therefore, they have ability to handle all the equipment accurately in order to avoid faults and mistakes which can damage the assembly system. Moreover, the loom technicians also take responsibility for this damage causes because of their careless in supervision and guidance these 5 young women.

3.8. Operation: * Cause of problem 1.4.1:
Despite the fact that the men were unwilling to work alongside with the young women and the complaint of 5 female school-leavers about the continual abuse from the loom technicians were increasingly, but the managers did not show any reaction to resolve conflicts. * Cause of problem 1.4.2:
The cause for this problem might be the manager because he gave the decision without thinking about both of the sides. He is right that the loom technician have to be responsible for the breakdowns of equipment. However, it was not only the loom technician who was related to that consequence. The three young girls who had a lot of conflicts with other loom technicians also affected the company’s result in a negative way because they could not have a good connection or association between each other. 3. Solutions: 4.9. Human Resources: * Solution of problem 1.1.1:
It is necessary to implement a disciplinary to punish these technicians. Though they are well-qualified workers but they also should be supervised by a laboratory team as the young female workers. In addition, they should be forced to work with the young girls and teach them how to use electronic systems as well as engineering knowledge. * Solution of problem 1.1.2:
The managers need to take off their special privileges, make them pay attention to their missions because of the safety of themselves. If not, they should be punished and deduct salaries. * Solution of problem 1.1.3:
The best solution for this problem is that instead of dismissing, managers should separate the “relationship at work”. That is to say, managers might send those girls to other positions which are not under control of their relatives. Besides that, managers can also give some punishments for the irresponsibility of those three girls so that they not only cannot receive support but also have to work seriously.

4.10. Finance: * Solution of problem 1.2.1:
If the company still wants to operate new system to reduce time working and assemble in a modern level, the manager should reduce the number of workforce that not related to the new computerized because they will not work efficiently as the operatives who adapted to the new system. For example, one loom technicians who used to work in a single loom following painstaking way, they should get use to learn how to assemble following the sequence of instructions provided by a computer. Unless he can use it efficiently, he will be out of work. * Solution of problem 1.2.3:
Manager should make a reasonable allocation of financial by keeping enhance improving quality of machine and training employees. Unskilled workers should not be allowed to be employed because they might cause damage for machines that will affect to company’s productivity even in a long time. The most effective solution is to train or hire employees who has high qualification though the company have to pay high salary for them, it could save money and time rather than the company repair machinery damaged by unskilled employee.

4.11. Technology: * Solution of problem 1.3.1:
The managers of Havortec Company should provide better training for five girls, make them know more about their working and specific missions, including emphasize that they need to listen to the guidance from the loom technicians.
On the other hand, the technicians, who received extensive training from the company, with between 8 and 15 years experience, must be reprimand and retrained. They lose their control personality, put personal feelings into the jobs, influence to the quality of work. Their aged between 36 and 50 years, they had matured, so they should keep calm in front of the young girls’ bad attitude.

* Solution of problem 1.3.2:
These 5 young women should be received a training course in order to help them have some basically knowledge about working condition and how to handle the electronic assembly system in accurate way. In addition, the company should also inform a policy in which all the workers must follow the safety standard and if they break the rules and damage the system, they will be punished. Furthermore, the loom technicians must supervise strictly and willingly give instruction whenever these 5 young women do something wrong.

4.12. Operation: * Solution of problem 1.4.1:
The company should encourage the manager by reward, prize or money for high productivity. Therefore, they must solve all the conflicts inside the workshop in order to have higher output, because when everyone co-ordinate well with the others, the result will be significantly increase. Besides, the company can also create a friendly work environment and provide more benefits for all the members, so workers and managers are both feel more satisfied with their jobs then they will work harder and fulfill their responsibility.

* Solution of problem 1.4.2:
To be more precise, the manager should think and consider about this situation carefully before giving any punishment or disciplinary action. The three young women were also related to the breakdowns and he have to investigate the underlying cause instead of punishing only one loom technician. If he does not do that, the loom technician will feel that he was discriminated and some following consequences might occur that can make the problem hardly to solve.

4. Solutions for the Emergency briefing of Loom technicians:

* Rumours of early retirement policy have some foundation:
Company should not let older employee retire early. Instead of that, company should invite them to be engineer consultant to save money for recruiting new employee and training them.

* Redundancies & reduced shift working not resolved:
First of all, with the rumours of reduced shift working, the workers should inform to all the employees that the rumour is not a truth and the company will arrange a suitable schedule for all departments to fulfill the workers needs about the salaries and shift working. Although they just work in shift working, they can have good income as in full-time if they work effectively. By holding a competition among departments and groups in company, the director can motivate all the technicians to try their best to get best regard and the company can increase their productivity. Secondly, with the rumours of redundancies, the manager should try to find the source of the rumours and show the result of defense contracts, sales and the detail data of product in warehouse to quell the rumours.

* Loss of status by new method implies job devalued – lower overtime – less pay:
As the Union representative had concluded, he claimed that the new method was ineffective, and worker’s quality was below the standard which led to the failure of the corporate’s performance. Furthermore, workers was paid less and they did not have chances to earn overtime payment; hence, their income also reduced. The manager should give more overtime jobs to workers so that they not only can have chance to earn more money to raise family’s income, but also increase the effectiveness and efficiency of the company so that our corporate’s performance will be improved. The manager can also give workers some motivation such as compensation or competitions in order to make them work harder and harder. Therefore, the productivity or manufacturing process will be improved and the company’s business will “take profit”.

5. Extensions – Additional situations: * The company has a new operating manager who can change Human resource system:

• The new manager should fire the 5 young girls and hire 20-25 year - old employees with high responsibility and experience and salary level, is paid for them, and is not too high with their experience.
• The new manager should punished the loom technicians by cutting down 20% their salary and require them to be blamed in front of all staffs in the company.

* The company create a emulation movement for staffs:
• These young women might not be permitted to choose their working partners and the company has to allocate them into other loom technicians teams who will teach and train these girls about engineering and electronic systems.
• The emulation movement will stimulate competitive spirit and amplify company’s productivity.

* There is no need to make a cost-cutting exercise, the company can remain salary level. In addition, manager can enhance organizational culture:
• By organizing events or party for employees once a quarter in a year to remain and improve relation among staffs .
• Improving working mortal by creating an entertainment program for all staffs in an official day per week. Each employee could be the main actor in these programs. Company can create birthday parties for those whom have same month of birth.

* The Hovertec company sells existing machine for developing countries such as Taiwan, Philippin, India, Middle East countries:
• The company might loss a mine amount of money but they can earn a sum of money immediately, if not, money will be devalued in the future. The amount of money earned can be used to buy a new automated assembly line or it could be robot arms. An obvious example for this is the Ford Motor company; they invested nearly $700 million to equip its Flatrock, Michigan, plant with an assembly line of robotic arms.
• With robots, throughput speeds increase, which directly impacts production. Because robots have the ability to work at a constant speed without pausing for breaks, sleep, vacations, they have the potential to produce more than a human worker. Robots offer untiring performance which saves valuable time. Their movements are always exact, so less material is wasted.

IV. Conclusion:
Hovertec pIc is striving for being survived in the military helicopters market. With remarkable investment in quality of the machine, we hope sets itself for a higher platform to for quality products to customers. The machine is the key in the development strategy of us. It is placed a central position to assembly processes. Within 6 month, Hovertec is going to expand its business network to many foreign countries. In implementing the guidelines of the managers to improve the product’s quality and reduces pressure on the current situations for better economic globalization. Also, Hovertect will heavily invest to have the bigger contracts in major clients in order to get better net income. With Hovertec leading brand-name, and long time experiences, Hovertect has tried to follow its objectives as an illustration for the commitment to bring best quality products to clients.