A printer and paper converter produces customized packaging used by industrial customers to deliver promotional materials, software, luxury beverages, and gift food and candy. The company specializes in creating innovative packaging solutions for its customers and providing full service from design through final delivery. Even though revenue has tripled, performance has been declining and the firm posted its first loss in over 10 years. The new VP of Operations has been hired to address operational problems resulting in cost overruns, quality problems, and late deliveries. He tours key departments including quality control and sales and visits the various work centers in the plant as he investigates the challenges in the current production process. This case can be used in a first-year MBA-level course in Operations Management. Students are asked to create a process flow diagram and perform break-even, capacity, utilization, and yield analyses before making their final recommendations for improving the firm's performance.
1. What is Bayonne's industry, key competitive priorities?
2. What size of orders would you route to the Royal/Queen work center, and what to the Staude work center?
3. How do you explain Bayonne's performance problems?
4. What should the new VP of Operation recommend to the CEO?