Case analysis on The Treadway Tire Company Study

Analysis on The Treadway Tire Company - Case Study ExampleRaw materials depended on the price of oil, which has rapidly change magnitude 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 companys economy. Further, capital of Peru Tire plant was facing serious morale problems with the line-foreman. Their dis propitiation was starting to affect the entire company.The plant presently is undergoing massive refinement in that it aims to modernize its efforts that will increase the plants capacity and use new manufacturing technology. In addition, Lima plant has become one of the Treadways cap 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 Treadway closed Greenville Plant situated in South Carolina because of outdated equipment and moved some equipment to Lima.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 procedure s, which has allowed Treadways to amortize the substantial fixed costs of operating a tire plant over maximum production volume. Current issues inwardly 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 Treadways 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