Duplex Paints manufactures paint in its factory in Canterbury. Until recently, the manufacturing plant, consisted of three processing departments: blending, mixing and packaging.
The manufacturer manager has now restructured the plant into self-managed work teams. Each team is responsible for all aspects of the production process for a particular product line. The processes that each team are responsible, for include ordering and receiving material from suppliers, receiving production orders from customers, blending, mixing and packaging the product, and delivering product to the loading dock for distribution to the customer. Each team consists of 10 workers to the customer. Each team consists of lo workers. To reflect the product line for which each team is responsible, the teams are named Exterior Paint Team, Interior Paint Team, Industrial Paint Team and White-goods Paint Team.
These teams were only formed six months ago, and will not achieve full self-management for several
Required:
1. Would you choose to designate the teams as cost centres, profit centres or investment centres? Explain your answer.
2. What are some of the additional responsibilities that the teams may take on as they self-management?
3. What are some of the performance measures that could be used to monitor the teams performance?
4. What additional information might the teams need to manage their own operations?