Presented to the Decision Sciences and Innovation Department

De La Salle University - Manila

Term 1, A.Y. 2022 - 2023

In partial fulfillment
of the course
in DSIOPMA - K34

Case Study No. 2

Making Hotplates

Submitted by:
Abella, Althea Jill S.
Aquino, Ernesto Juan III F.
Chan, Katrina Elyssa B.
Sorita, John Stephen F.
Ungson, Ricardo Rafael U.

Submitted to:
Prof. Lawrence T. Co

October 24, 2022

 Case Problem 2: Making Hotplates

A group of 10 workers were responsible for assembling hotplates (instruments for heating
solutions to a given temperature) for hospital and medical laboratory use. A number of different models of
hotplates were being manufactured. Some had a vibrating device so that the solution could be mixed
while being heated. Others heated only test tubes. Still others could heat solutions in a variety of different
containers.

With the appropriate small tools, each worker assembled part of a hotplate. The partially
completed hotplate was placed on a moving belt, to be carried from one assembly station to the next.
When the hotplate was completed, an inspector would check it over to ensure that it was working
properly. Then the last worker would place it in a specially prepared cardboard box for shipping.

The assembly line had been carefully balanced by industrial engineers, who had used a time and
motion study to break the job down into subassembly tasks, each requiring about three minutes to
accomplish. The amount of time calculated for each subassembly had also been balanced so that the task
performed by each worker was supposed to take almost exactly the same amount of time. The workers
were paid a straight hourly rate.

However, there were some problems. Morale seemed to be low, and the inspector was finding a
relatively high percentage of badly assembled hotplates. Controllable rejects those caused by the operator
rather than by faulty materials were running about 23 percent.

After discussing the situation, management decided to try something new. The workers were
called together and asked if they would like to build the hotplates individually. The workers decided they
would like to try this approach, provided they could go back to the old program if the new one did not
work well. After several days of training, each worker began to assemble the entire hotplate.

The change was made at about the middle of the year. Productivity climbed quickly. By the end of
the year, it had leveled off at about 84 percent higher than during the first half of the year, although no
other changes had been made in the department or its personnel. Controllable rejects had dropped from 23
percent to 1 percent during the same period. Absenteeism had dropped from 8 percent to less than 1
percent. The workers had responded positively to the change, and their morale was higher. As one person
put it, Now, it is my hotplate. Eventually, the reject rate dropped so low that all routine final inspection
was done by the assembly workers themselves. The full-time inspector was transferred to another job in
the organization.
 Case Problem 2: Questions

1. What is the case all about and what is its main purpose?
Given the situation, the case aimed to highlight the significance of process selection and
facility layout. In the example of the production of hotplates, the process had been refined to
attain its optimal working conditions whilst effectively outputting quality working products;
however, despite already having been balanced by industrial engineers to break down the task and
evenly—yet collectively—distribute the work among the workers, an evidently flawed outcome
had been yielded.
The case reflects an opportune moment to further apply, or in the circumstance of the
case, revise the process to possibly achieve better results in productivity and output. As stated in
the case, changes in the department or personnel had been foregone, yet a mere change in the
production process was all that was necessary to create a substantial difference. It's a simple but
good example for finding ways to make the most with what is already available, keeping
additional expenditures at a minimum, whilst simultaneously being able to maximize profits.

2. What changes in the work situation might account for the increase in productivity and the
decrease in controllable rejects?
According to the case, the company’s assembly line had been carefully constructed by
professionals, such as qualified industrial engineers. It was balanced in a way that it considered
which is the most effective and efficient way to divide the assembly line into each subassembly
tasks, and an equal amount of time consumed in each subassembly. All of this, yet there is still an
increase in controllable rejects by the fault of the operator in terms of low morale.
Our group believes that the changes– specifically, producing hotplates individually, is the
reason for an increase in productivity and a decrease in controllable rejects. Being in charge of a
hotplate in its entire process can create a sense of responsibility, which then leads in the pursuit of
fulfillment. Meaning, an operator would exert more effort to work on a product that he or she has
been assigned to from the beginning of its production up until the end, because there is flexibility
(no internal deadline & pressure from workmates) and an intrinsic motivation (fully responsible
of the outputs & labeled these as their “own work”). Moreover, the several days of workshop
may have also contributed in establishing a higher standard among workers, given that it allowed
them to enhance their skills and have an up-to-date knowledge of their work. With these changes
being considered, each operator ensures that outputs that are produced by oneself are up to his or
her standards.
3. What might account for the drop in absenteeism and the increase in morale?
Much like the answer above, the management’s decision to change the work process in a
way that grants each worker accountability and responsibility for each hotplate they have crafted
individually is a key agent in reducing the absenteeism rate to less than 1% and in improved
morale. Similar factors have contributed to the sense of fulfillment gained through conscientious
labor: flexibility, by granting them agency and authority over their own work, and intrinsic
motivation. Because the workers feel as though they are capable to produce as a crucial member
of a unit working towards a common goal instead of a machine doing the same thing
monotonously, continuously, and repetitively, and with little room for motivation for excellence,
they take pride in their industry (“Now, it is my hotplate,”) and are therefore more content in their
job, resulting to a boost in interest, reduced absenteeism, and increase in morale.

4. What were the major changes in the situation? Which changes were under the control of the
manager? Which were controlled by workers?
The change in the production process was the biggest change. But in these kinds of
situations, workers and managers have different scopes over which they have control. Naturally,
managers control who will be doing which, and which will be done where. Hence, the change
under the manager's control was the decision on how the group should operate. That is, switching
from industrial assembly lines to individual assembly.
Technically, the improvement in morale, absenteeism, and productivity were all under the
control of the workers. But they should not be expected to accomplish such feats without giving
them a pathway to tread on. The managers had no clue that an individual assembly system would
invigorate operations and boost numbers, but what was important was being open to change and
having the hunger for improvement. Perhaps the most profound effect of the change in process
was the transfer of control. Now that control and autonomy was in the hands of each worker, the
production instantly became personal. In effect, each hotplate that was produced signified the
workers' positive response to having a trusting work environment.

5. What might happen if the workers went back to the old assembly line method?
All of the hotplate subassemblies have been taught to the workers on the individual
assembly line. This gave them the opportunity to gain expertise in the production of hotplates; as
a result, if the workers can once again work together as a team, productivity would rise and
efficiency would be attained. Similar to how the output speed will increase in the new teamwork,
each person was accustomed to high-speed production that had boosted output. The workers will
 nevertheless manufacture a hotplate of higher quality than even the individual level due to quality
production gains at the individual product level.
Otherwise, the new group work assembly could lower output because certain employees
might feel undervalued and lack motivation to perform at their best when working in groups.
Some employees will work less diligently on group projects than on solo activities. The end
outcome will be a weak squad with poor production due to a lack of motivation to generate
hotplate as a team.
If the workers resume putting the hotplate together piece by piece rather than as a whole,
I believe that this will have a detrimental impact on the organization's production. Production
would suffer, and there would be a detrimental impact on employee morale. This will result in
decreased production rates and higher absenteeism. Any boosts in motivation and output that they
attempted to achieve will be destroyed by this.

6. What actions / strategies that can be recommended to management to achieve increased

productivity?
- Hire New Workers: Since there were no changes made to its personnel, it would be
recommended for management to hire new workers to increase their productivity. These workers
may be trained and briefed in line with the new program so that they can understand the process
of the assembly line.

- New Technologies: The department can invest in new technologies to increase the
efficiency of the assembly tasks. It can introduce to faster processes that the personnel can work
with and improve their work quality. This will boost the productivity of the company through the
help of both workers and new innovations.

- Facility Layout: The industrial engineers of the company can re-review its time and
motion study to be tweaked in accordance with the new program. Their study can help in
improving the facility layout to streamline the production process and reduce inefficiencies in the
workplace. Based on the findings, the department can be informed on the issues that need to be
addressed immediately. This will overall rebalance the new program with the right assembly line
for all the workers.