CASE ANALYSIS

The Treadway Tire Company, Lima Tire Plant

TREADWAY TIRE COMPANY

The company was a

major supplier of tires
to the original
equipment
manufacturer and
replacement
tire markets

The Treadway Tire

Company employed
almost 9,000 hourly
and salaried staff in
North America

In 2006, Treadway
shut down the
Greenville, South
Carolina, plant, which
had been plagued
byoutdated
equipment, and
moved the volume to
the more efficient
Lima plant.

MAJOR CHALLENGES FACED BY

TIRE COMPANIES IN GENERAL
Raw

material costs-Raw material

contributes to 55% of total cost of a tire.
Increase in price of crude oil-Petroleum
derivatives are important ingredients and
price shot from $25/Barrel to $92/Barrel.
Intense global competition.

LIMA TIRE PLANT

Some statistics about Lima Tire Plant:

Plant Building encompassed over 1.5 million sq

feet
Situated on 128 acres of land
No. of employees 1120
-970 Hourly
- 150 Salaried
Operated for 24 Hours in two shifts of 12 hrs each
Production- 25000 passenger and light truck
tires per day

HIERARCHY OF WORKERS
Plant Manager

Supervisor

Line Foreman

Hourly Workers

PROBLEMS AT LIMA TIRE PLANT

Primary ProblemDissatisfaction within line-foreman segment

leading to higher turnout.
Secondary problemsi)Less number of young graduates from college; so
required skills missing for promotion.
ii)Foreman-Hourly workers relationship
iii)No formal training at any level

PROBLEM ANALYSIS
Analysis of Primary Problem1.)Hectic work schedule-Resolution of
personnel, resource and administrative
issues.
2.)Stress-Pulled by management, workers
and Union.
3.)Pressure-to meet everyday goal
4.)Less Power and authority and
undervalued

SOLUTIONS
Workload of foremen should be reduced.A
seprate department to complete
administrative duty like scheduling hours.

To give more authority to Foremen

Team building activities should be

conducted

CONT...
Increase the number of foremen with
company transfers and having college
degree for diversity

Implementing knowledge and sharing

within the employees.

PLAN OF ACTION
Workload of foremen should be reduced

More authority

Team building activity

Increase the number of foremen with company transfers

and having college degree for diversity

Knowledge and sharing within the organisation