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.
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.
- HOVERTEC CASE STUDY
- PROBLEMS OF INTER-DEPARTMENTAL CONFLICTS:
- The loom technicians were unwilling to work alongside the young women on classified defense contracts.
- 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.
- 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.
- 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.
- Company obviously in a financial squeeze.
- 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.
- The breakdown of equipment was the result of vandalism.
- Irresponsibility of manager in dealing with problems in workplace.
- There is only one loom technician was punished while those three girls were also related to the breakdowns of equipment.
- CAUSES OF INTER-DEPARTMENTALCONFLICTS:
- Human Resources:
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.