Back ground: I have worked as an engineer for an automotive injection molder for 3+ yrs. 100% of the business is to supply finished molded assemblies etc to NUMMI Car Co, a joint Toyota and GM venture since 1984 in SF Bay Area.
During this year we have had 2-3 weeks of TPS Training. Very powerful Toyota Production System Training. It teaches production system design and improvement philosophies and includes, hands on practical training. One of the tenets of the Toyota system of continuous improvement is to create a professional, team environment with job safety being a core consciousness.
I have been Team Leader on two extensive projects since,where we achieved greatly improved quality and output. Project 1. being really successful, led to the inevitable question. Can we do the job with one operator instead of two? Being assured that the operator would be utilized elsewhere we set up a leaner system and reduced 'Head count by one' i.e. rated at $35k savings per year.
A new project came up a month ago. I was sought out to lead it and to design fixturing and assembly equipment to reduce, "head count by one" operator per shift (x 2 shifts). I eagerly designed improvements, competing with a $196K rejected budgetary quote done by the previous poor fool given the task prior to me.
In my eagerness I came up with a $40k solution and it would remove " 2 heads per shift", ie 4 x S35K per yr. I wondered did the previous engineer think, as I do now, and quietly seek an inflated quote.
I mocked it up, it worked well, too well. I hid the results from everyone, while I tried to wrangle with my conscience. I know 4 Heads are definitely going to be laid off if this comes on line.
I sought out 3 uninvolved dept managers and put this hypothetical question to them. Would you propose a design (costing $40 k to implement within 2 months, but saving $140k per year), that will certainly cause 4 people to lose their jobs or would you keep the lid on it until we get thru this downturn?
My consideration is that the $40k out of pocket now would easily pay for the 4 operators for the next 3 months and the $140k savings would not be immediately realized anyway. A few months will hopefully, make a big difference in the availability of employment opportunities elsewhere for the 4 layed off people. There isn't a pups chance of getting a job presently in this area.
The managers had mixed feelings and some lied to make me feel good, saying that the people would be used elsewhere, (not true as they are still laying off). My direct boss was honest, saying, that in this climate those people would be gone instantly, but that this was not the case ever before.
What would you do, in my situation, hold the plan, or implement it asap?
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