Milan Sanitation Department Harvard Case Solution & Analysis

Q2. Records on performance by individuals or on costs for individual jobs were discontinued. Do you agree with this policy?

I trust the policy because after the reasons for the minimal productivity figure became evident, the meeting that Mr. Sponza convened between labour/management committee and the entire shops workforce it is decided that the employee longer ought to list the actual time it took to do a job. After the decision had been made the overall efficiency of union labor increased and the policy had been changed that may be made by the profit center when the management would no longer focus on work standards that is given to particular jobs and individuals. Individual’s records regarding time period spent on jobs will not be required.

An advantage of a new process is that the management was changed to start with. It means that the effort standards were changed, individual time accounts became unnecessary. This kind of reports is preffered by a few workers that is why it may be accepted as a benefit. On the contrary, the attention was paid to the price tag on production in comparison along with other vendors, with this policy,  reporting around the amounts of working hours isn't very productive but dull. The new system considered the productivity which is significantly more important than every day reports on personal hours that were spent on a working place. I accept the strategy of measuring how nicely something is done and not how much time passed during my performance. Furthermore, the total expenses of a specific shop began to get compared with the total worth of output which, with its turn, was correlated with competitors’ prices. So the benefit of a new system has been the centering attention on productivity.

Another benefit can be a competitive visibility, “Each shop has a substantial chart in an obvious location, and a spirit of competitiveness has evolved, further encouraging their desire to increase efficiency.” Another advantage of Mr. Sponza’s approach is that he did not let go of the workers and appointed new one who was more experienced but he found that getting labor mixed up in running of an operation is not only exciting and gratifying, but also extremely worthwhile regarding improving productivity and also service quality.

Q3. What recommendations, if any, would you make to Mr. Sponza concerning the system he has developed? How might you improve on it?

I would not change ones approach connected with Mr. Sponza because this showed their effectiveness. Changes could lead to a decline in income. This approach is usually rather flexible this is why the item is actually changed as soon as the time regarding changes comes. The case does not mention some dissatisfaction through workers or even Sponza’s deputies; it means that there were no such claims and that they were merely fears connected with changes.

The Administration focuses more on specific shops production level and profit that must be met by each retailer on its acceptable degree. With this change they may be saving 16 million Euro costs where they improve the overtime issue which was experienced previously more costly. In addition to this, labor can be showing enthusiasm to this concept and policy, just how every shop developed a heart of competition and this will increase their product quality. One report shows following few months in which the productivity raised to 1.30.


y Transmission Axle and Related Upholstery Radiator Exhaust system Brakes Electrical system Engines Total
 Number of weeks Of Operation From Inception To Present Time                       37                             40                  35             36                            23           30                              37             43 
 Input                     350                        1,280                126           263                          643        494                           603       1,272  5,031
 Output                     716                        2,146                183           438                      1,562        534                           717           822  7,118
 Profit                     366                           866                  57           175                          919           40                           114         (450)  2,087
 Productivity Factor                  2.046                        1.677             1.452        1.665                      2.429     1.081                        1.189       0.646      1.5

Weak points, engine shop faces issues to measuring output the real reason for it is that shop’s credit history for rebuilt engines was exactly like their cost of getting new engines. Productive factor and that is less than one indicates that the town could purchase new engine to spend on rebuilding these individuals. The low productivity issue for Brakes also suggests that there is something wrong with the middle. The department should identify the factors which can be a negative influence to brakes center, the center is not really effectively contributed towards income. The Management needs more involvement from the centers to diagnose the leading reasons for brakes department for this to be done the management needs to speak with the labor force...............................

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