If each factory is earmarked for an individual line, there will only be the need to purchase machinery and equipment relating to the production of that particular line within the new factory.
Increased Productivity and Expertise Individual lines will mean an increase in utilisation of space creating raised productivity by focussing on an individual line. The nature of the work is therefore concentrated into one area, increasing the expertise of employees. Promotion of Goods in Different AreasIncrease in marketing opportunities for TBBC across three different areas; Plymouth, Manchester and the Midlands. This will also raise awareness of the company’s profile. iv) Employment/Staffing The restructuring of the company will provide job opportunities for existing staff to develop further in their career. There will also be a need for specialised Managers to assist with the development of the factories.
Relocation packages will be offered to those employees interested, along with further training opportunities for staff to work between the two individual lines.This will, in turn, provide a more flexible workforce within TBBC to utilise at busy times. The creation of job opportunities in Manchester and Plymouth will be welcomed, as these are areas of high unemployment and with people experienced in factory line work. The salaries in these areas may vary depending on regional differences in economy. The main disadvantages of individual lines at each of the new factories would be: Shipping DistancesWith segregated factories producing different lines, distribution costs will be incurred to supply customers across the country. There may also be delays in supply with the distance between regions being so great.
Staff Morale With the creation of these factories, existing staff will be given first opportunity to relocate to the Manchester and Plymouth areas with staff in specialist roles having little choice in location. This could result in low morale and loss of employees as they chose to remain in the Tiptown area.Training costs To ensure the effective running of the lines in Plymouth and Manchester, training will need to be provided for both existing staff who may be gaining promotion and newly recruited employees to develop the required skills needed to operate the lines. This will also incur a delay in the development of the new factories. Regional Pay Discrepancies With the variation in costs of living in each of the new areas, a drop in morale may occur with those performing the same tasks on a lower salary. Management of ChangeWhere change occurs in an organisation, attention is required to manage this change effectively. TBBC will need to ensure that all employees are consulted and available skills are recognised and matched to available positions. vi) Poor Communication With three factories in operation and so geographically widely spaced, there is a possibility of regular communication breakdowns.
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To help prevent this, further costs in the restructuring of management will be required. There are clearly benefits with both solutions to the organisation of both the new factories.However the main advantages are balanced in favour of each factory producing both cakes and biscuits. This will allow for the same management structure to be maintained throughout the company, which will aid communication and understanding throughout the workforce. It will enable distribution costs to be lowered and enable local tastes to be catered for in the different regions.
The development and expansion of TBBC involves consideration into the appropriate structure of the company in order for it to work effectively.
