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(Solved): The organization structure of ABC company which is negatively impact on its technical departments ...



The organization structure of ABC company which is negatively impact on its technical department’s performance due to lack of communication, collaboration, coordination, and control (4Cs) among technical department, research & development department, and compounding section. Existing ABC company’s organization structure had been redesigned two years ago due to top management change, high employee turnover, and new product transfer from other strategic business unit (SBU). Because of these strategic changes, currently ABC company is facing lots of operational issues day to day on the shop floor related to process variability, high reject, high rework, accumulation of WIP, production re-scheduling, and shipment delay. In addition, organization politic is converted in negative way which is creating workplace revenge among the departments and employees. Therefore, ABC company’s organization structure should be re-designed in strategic and analytical way to overcome these critical issues. Existing Organizational Structure ABC company is structured as a mechanistic organization with functional departmentalization to control and coordinate through the vertical hierarchy in efficient manner. It has twelve departments with around 80 shop & office staff (SOS) employees, around 900 wedge board staff (WBS), and wedge board workers (WBW) employees. However, this study is going to focus on organization structure and design related issues in ways of 4Cs among technical department, R&D department, and compounding section (part of production department). Technical department of ABC company is playing very important role in each and every activity of the organization. The department has twelve SOS employees and 36 WBS employees who are divided into three major areas; those are bill of material (BOM) section, sampling section, and process control section. Here, BOM section’s main tasks are to updating actual material consumption to enterprise resource planning (ERP) system and create the BOM based on production plan. Sampling section has direct relationship with customer in order to fulfil customer requirements on their products. Based on the customer request, they are doing slight changes on the products like colour changes or value added activities; and send samples to customer to get approval. Through these activities, they initiate new business to organization. Finally, the process control section is controlling all the process activities from raw- materials to finish-goods by various testing activities in each and every stages of the process. In addition, they are responsible for process design and optimization, control of rejects and reworks, identify the process issues and troubleshooting, new product launch and plant commissioning. Most of the operational decisions are made by production department based on process control section’s information and their activities. analyse the structural dimensions of abc company



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