Wausau Equipment Company Case Solution & Answer

Wausau Equipment Company Case Solution


Wausau Equipment firm (WECO) is a world-renowned brand in engineering and machinery in the commercial industry. By the end of the year 2000; the firm’s operating profit had dropped by more than 10%, due to increased labor costs and building materials with an inclusion of an increased labor and liquidity of more than 29 m. The situation has led the firm’s decision-making council to direct John Steiger, president of MSD to expand and execute a complete plan to meet the $ 2.925 m target for better performance.

John Steiger had earlier experience of lean administration; therefore, he was well known of the first significant problems he faced when using insignificant ideas. Therefore, included Lean variability, a team that settles with administration for use by the dependents. The firm plans to manage a 39-week change project with three evolution cycles, each consisting of 91 days. After the test stage was made up of two advisors from lean abilities; five test places were made. Eight teams were made, each consisting of two to four people: one engineer, one support technician, and a supervisor/department manager, to evaluate the development opportunities.

The firm raised its profit before interest and taxes soon after the execution of the controlled concept. Currently, the firm’s directors are focused on improving the overall controlled process. In a controlled process, the common method used is known as SIMPA, which represents definite standards, recognizing value issuance, flow and cut and paste, strategy, and it focuses on regular advancements. The firm plans to launch a reliance process from 273 days, and these 273 days are divided into 3 stages based on the equipment improvement process.

Of the three stages, the first one was based on the obvious improvement while the remaining two stages were based on enhancements and feasibilities. Although the firm is made to attain its goal, its  true approach is not just this at all, but it is ratheran ongoing stage of the process, and one can always find advancement in such process. The three most important factors that need to be emphasized on by firm administration, are: values, low morals and process advancement. The firm has an urgent need to make adjustments to its culture, especially for employees who are strongly against the change.

Weather Lean implementation at Wausau has been successful.

Lean is considered a necessary part of successful manufacturing work. The basic goal of reducing waste to produce a larger product has had a major impact since it was developed into a lean complex. As the lean extends, it is often used. This includes industries other than manufacturing industries that were not the first to receive. Wausau has had a unique success with Lean’s tactics and methods. Having said that, there is always room for improvement and the key to maintain high productivity and to reduce the incurrence of  loss is continuous improvement.

At Wausau Equipment Company, the project’s timeline was set to last 39 weeks and it was divided into three cycles of the equipment development process. The 39-week launch, however, was largely made up of Lean Dynamics advisors. Also, the senior management was skeptical of Lean’s process. In other words, there is a lack of Lean knowledge and other cultural limitations, which could be the impetus for further business improvement. So the first step to make continuous progress would be a cultural change in the organization, which not only absorbs the reduced philosophy but also trains its employees and provides guidance on how to manage the workload…………………………

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