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Devry BSOP434 week 5 ilab




Question;Lab 5: Columbia Lumber Products Company;Note!;Submit your assignment to the Dropbox located on the silver tab at the top of this page.;(See the Syllabus section "Due Dates for Assignments & Exams" for due dates.);Scenario/Summary;The Columbia Lumber Products Company (CLPC) was headquartered in;Portland, Oregon, where it had been founded in 1899. For many years, its;principal product had been only lumber, in the 1940s it began producing;plywood, and in 1960, particle board. The first two products, lumber;and plywood, were produced at various sites in Oregon, and marketed on;the West Coast and as far east as Chicago.;Particle board was produced in Duluth, Minnesota, at a plant built in;1962 with a U.S. Area Redevelopment Administration Loan. Initially, the;input to the plant was trimmings and other scrap from CLPC?s Oregon;operations. Particle board sales increased so quickly that the Duluth;operation consumed not only all of the former waste from CLPC?s Oregon;plant but also waste purchased from various lumber and wood products;operations in Minnesota and northern Wisconsin.;In terms of product volume, CLPC?s sales doubled between 1960 and 1990.;However, nearly all the growth had been in particle board, lumber and;plywood sales remained relatively constant (though varying with changes;in the home construction industry). In 1996, exports accounted for 9% of;CLPC?s sales. Nearly all of this was plywood sold to Japan. Fifteen;percent of CLPC?s 1996 purchases were from foreign sources, 5% was;mahogany from the Philippines used for plywood veneer, and 10% was wood;scrap purchased from Ontario, Canada, for use in CLPC?s Duluth plant.;Particle board produced in Duluth was marketed in all states east of the;Rocky Mountains, although sales in the southern United States were;somewhat less than spectacular.;The slowdown in home production, which started in the late 1970s in the;Midwest, really never ended and resulted in many years of little or no;growth in CLPC?s sales. Common stock dividends had been cut several;times. In 1996, they were 37 cents per share, down considerably from;their peak?in 1976?of $2.21.;Stockholders, the outside directors, and various lending institutions;were becoming increasingly unhappy. After a long, tense board of;directors meeting, agreement was reached only with respect to what some;of the organizational problems were. A partial list follows.;The corporate headquarters was in Portland, although all growth;occurred in the Midwest. Possibly, the headquarters, or at least more;functions, should be shifted to an office in Duluth where the plant was;or to Chicago, the largest sales office. A major relocation away from;Portland would be difficult. Many employees would choose to remain on;the West Coast. Even for those willing to relocate, there was a split;between those willing to relocate to Duluth and those willing to;relocate to Chicago.There were too many vice presidents (see Exhibit 14-A). Because four;vice presidents (engineering, finance, human resources, and purchasing);would reach mandatory retirement age by 1997, the number of vice;presidents should be reduced from nine to no more than six (plus one;executive vice president).Logistics and distribution costs were higher than industry averages.;The majority of customer complaints dealt with poor deliveries. In;Exhibit 14-A, a T shows where a traffic management function was located.;Geographically, the traffic manager for overseas operations was located;in Seattle, which was a foreign trade center for the Pacific Northwest.;The Chicago sales office had a traffic manager who handled all;fiberboard distribution and lumber and plywood distribution east of the;Rockies. Production and purchasing shared a traffic manager who was;headquartered in Portland and whose principal duty was overseeing;shipments of waste products from Oregon to Minnesota. Another traffic;manager in Portland, who reported to the sales vice president, was;acknowledged to be the firm?s senior traffic manager and more or less;coordinated the efforts of the other three. Recently, Irwin Buchanan III;had been promoted to that post. He was the only one authorized to;initiate action before regulatory bodies, and he also handled the;negotiations with carrier rate-making bodies and with carriers. (CLPC;used contract truckers and rail for most of its shipping.)The purchasing department handled the details of fleet management;which included about a hundred autos on long-term lease for use by;management and by the sales force. Several light trucks were leased for;use around the plants.CLPC also owned two small aircraft, which often were the target of;questions during stockholders? meetings. One plane was based at;Portland, the other at Duluth. Each was used in its respective region;for trips to sites without scheduled airline service. Both planes were;under control of the production department. Other departments;especially sales, complained that the planes were being used for the;benefit of the production department rather than for the benefit of the;entire firm.P in the exhibit shows two packaging engineering functions. The one;under engineering was located in Portland and dealt with plywood;products. The one under sales was located in Chicago and handled;particle board products. The two packaging engineering functions saw;their roles differently. The one in Portland was concerned mainly with;safe packing and packaging of products moving between CLPC plants or;from CLPC plants to customers. The Chicago packaging engineers were;interested in finding new markets for particle board and lumber as;packaging materials to be sold to others. W in the exhibit shows where;there are company-owned warehouses. Numerous public warehouses were also;used, although not continually. Block I (upper left corner) in the;chart below shows locations of individuals concerned with inventory;levels. All four individuals were located in Portland. F indicates where;sales forecasting took place. Only sales and production devoted much;staff to forecasting. Each quarter, however, the financial vice;president?s office coordinated all forecasts to ensure comparability.;Computer operations were under control of the engineering division.;CLPC?s executive vice president determined priorities for computer;access and use.The human resources department handled employee moves, although only;a few had taken place since 1980. An outside director who was familiar;with current federal legislation suggested that CLPC negotiate a;contract with a household goods carrier to handle all CLPC employee;moves. This action would be especially significant if a major;reorganization resulted in numerous employee transfers.;Deliverables;This week?s lab consists of five questions. Please be certain you answer;all the questions and address all the areas outlined in the grading;below.;LAB STEPS;Step 1: Original Organizational Chart;Back to Top;Question 1: Draw a new organization chart for Columbia;Lumber Products Company that you feel best overcomes the directors?;criticisms of CLPC?s present (January 31, 1996) organization. Indicate;the geographic location of all operations shown on the new chart.;Explain why you established the organization chart the way you did.;Step 2: Organizational Chart of Reorganized Firm;Back to Top;Question 2: Assume that the firm should be reorganized;in a manner that emphasizes sales and marketing. This would include a;physical distribution system, which would support the marketing effort.;Draw an organization chart that you think would accomplish this aim.;Indicate the geographic location of all operations on the new chart and;explain why you drew the chart as you did.;Step 3: Organizational Chart of Centralize Firm;Back to Top;Question 3: Assume that the firm wants to reorganize;into a highly centralized form, closely managed from a single home;office. Draw a new chart that takes this into account. Indicate the;geographic location of all operations on the chart and explain why you;organized it as you did.;Step 4: Organizational Chart of Decentralize Firm;Back to Top;Question 4: Assume, instead, that the firm wants to;reorganize into a highly decentralized form, where many important;decisions can be made out in the field. Draw up a new chart, including;the geographic location of all activities. Explain why you drew it up as;you did.;Step 5: Faster Third-party Firm;Back to Top;Question 5: Young Irwin Buchanan III, the firm?s senior;traffic manager, heard rumors that the number of vice presidents was to;be reduced. He felt that this would reduce his chances of ever;achieving vice presidential?or presidential?status. Luckily, he had;access to some money in a family trust fund. He wondered whether he;should propose to form a separate, third-party firm to contract with;CLPC to perform CLPC?s logistical operations. What functions should it;offer to perform?;Step 6: Final Step;Back to Top;Submit your completed assignment to the Lab Dropbox in a MS Word;document for grading. This work should adhere to the APA 6.0 guideline.;See the Syllabus section "Due Dates for Assignments & Exams" for due dates.;Grading Rubric;Back to Top;Be sure to answer all the questions.It is recommended that you show all of your work. If you only;provide the answers and any of them are incorrect, you will lose all of;the points allocated to the incorrect answer. However, if you show your;work you might be able to obtain partial credit even if the answer is;incorrect (e.g., you set up the problem correctly but you make a math;error in your calculations)


Paper#53697 | Written in 18-Jul-2015

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