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Corporate Finance

A Fighting Chance: New Strategies to Save Jobs and Reduce by Sally Klingel, Ann M. Martin

By Sally Klingel, Ann M. Martin

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Are cost study teams, then, only exercises in futility, or do they buy critical time that enables an operation to regroup? Clearly, Hog's Helpers must struggle with this issue. Team members recognize, as do most people in the distribution center, that it is not enough to have reached this year's target. They see themselves as an ongoing force in redefining the future of the distribution center. Hence, they have chosen to establish targets for future years and to look for a product to build that needs space.

Background The Harrison Radiator Division of General Motors employs more than six thousand hourly workers and close to one thousand salaried employees. Harrison is the world's largest *Under the 1984 agreement between General Motors and the United Auto Workers, the company was required to give notice to the union sixty days before work would be outsourced. " Harrison management has never invoked this clause. 36 Harrison Radiator and the VA W manufacturer of air-conditioning components and heattransfer devices, which it produces for automotive companies, primarily General Motors.

Two technical advisers were assigned to assist the team, one from finance and one an operations manager. The facilitator for the team, a plant employee involvement coordinator, had worked with several other CSTs. The team was given four months to complete its task, with the option of a one-month extension. The team had a rocky start; not only were the members dismayed by the enormity of the task before them, but they received little support from their co-workers. For the reasons described above, the team felt they were not well accepted, making it difficult to get ideas from the floor.

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