Warehouse managers and employees report poor communication over the last year. Problems with quality control are suspected for several reasons.
First, appropriate goals have not been specified.
In addition, it is possible that employees are not receiving proper direction about how to manage the inventories.
Finally, interviews with warehouse managers and union representatives indicate that appropriate work processes are not being used in some activities. This situation has resulted in extensive re-work and unwarranted overtime.
Morale and worker productivity problems may be due to the fact that many employees believe their compensation is low relative to competitors in their area. This belief may have negatively impacted their productivity.
Several methods were used to examine the operations at warehouses in Chicago. The study team members interviewed the warehouse managers and several workers in each warehouse.
A consulting company, Malcome & Associates, completed an analysis of the various policies and procedures used by the warehouses. A human resources specialist from the Chicago office interviewed managers as well as labor union representatives at each warehouse. Some of the analysis has not been completed and should be finished within three weeks.
The completed portion of the analysis indicates there are three possible causes for the problems at the Chicago warehouses:
¢ Insufficient quality control
¢ Low morale and reduced worker productivity
In contrast, interviews in Melbourne, Vancouver, and London indicate that warehouses in these areas do not seem to have the problems found in Chicago. Managers and union representatives at these locations stated that all personnel work together in a cooperative manner. Communications between all warehouse personnel regard