F102: Scrap the Factory Structure

Job shop owners, presidents, and general managers with profit responsibility face an organizational challenge that significantly hinders job shop performance and profitability. The problem is that job shops use a factory type organization structure which is not correct for order driven businesses. This results in an inability to ship on time, cost overruns, extended lead times, scheduling difficulties, customer dissatisfaction, and ultimately, lost business. This issue is invisible because the existing organizational structure is taken for granted. These types of companies can be organized in a better way, and transitioning to a process model proves to be the most suitable approach for day-to-day operations and control. In this seminar, you will learn why the typical job shop structure is inadequate and how to reorganize effectively using a process model.