Case analysis on The Treadway Tire Company Study

Analysis on The Treadway Tire Company - Case Study Example Raw materials depended on the price of oil, which has rapidly increased from $ 20 per barrel to $ 90 barrel in 2007 influencing the economics of tire firms. The rising cost of raw materials was posing a great impact on the company’s economy. Further, Lima Tire plant was facing serious morale problems with the line-foreman. Their dissatisfaction was starting to affect the entire company. The plant presently is undergoing massive expansion in that it aims to modernize its efforts that will increase the plant’s capacity and use new manufacturing technology. In addition, Lima plant has become one of the Treadways top plants in quality ratings and productivity because of the enhanced technology and updated equipment. Treadway closed Greenville Plant situated in South Carolina because of outdated equipment and moved some equipment to Lima. Therefore, with the additional volume, Lima moved to continuous operations, which has allowed Treadways to amortize the substantial fixed costs of operating a tire plant over maximum production volume. Current issues within the plant is the rising cost of raw materials, high level of job dissatisfaction and tension that exist between hourly paid workers and foremen. Currently, there are no enough people qualified to be promoted to the ranks of foreman. The company desires to solve the turnover problem in order to make Lima Plant become Treadway’s top plant for productivity and its lowest cost producer in North America. The Company wants to have employees who are satisfied with their work. Due to this, the company conducted an employee satisfaction research, noticed that some supervisors were not happy with the job, and was concerned about the positions of line supervisors. There is need to increase intercompany transfers and the percentage of college graduates. Summarily, the increase in costs of operation should allow the company to increase