Bayonne Packaging was founded in 1964 and produces customized packaging. It has various departments that each perform a specific process, such as design, printing, die-cutting, folding, and finishing. Bayonne works closely with customers on design and provides services from design to delivery. The new VP of Operations, John Milliken, was asked to analyze operations and focus on reducing costs, improving quality, and ensuring on-time delivery.

1. Bayonne Packaging was founded in 1964 by Dave Rand’s father (Dave
Rand is the vice president of the company) and its shareholders are
composed of family members, a local banker and an outsidecounsel
Bayonne is a “specialty packaging” paper converter company that
produces customized and complex-designed packaging which is
used for promotional materials, software, luxury beverages, gift
and candy wrapping.
In addition, the company also provides low volumefinishingworks such
as laminating gold- or silver-foil and attaching string-and-button
fasteners, Velcrodots etc.
According to its manufacturing layout, Bayonne Packaging is a
job shop which involves functional work centers (Figure 1), such
as Composition Department, Sheeter Department, Printer
Department, Die-Cut Department, Fold and Glue Department,
Window or Patch Department(3A)and FinishingDepartment, each
responsible for a specific typeof job.
As shown in Figure 1, working closely with customers to develop
artworks and package design and upon their approval, the company
usually creates printingplates and die, sheets the paper from roll
stock, prints the artworks on 4- and 6- presses, die-cuts the sheets into
blanks which would later be folded and glued mostly as finished
products, and uses either or both of 3A machines and special
finishing (the former for attaching clear plastic “windows” and tear-
strips on envelope-style products and the latter for metal foil finishing
and other attachments), then puts them in the warehouse for shipping
They provided all services rangingfromdesignassistanceto the final
delivery of the package, and their sales force team worked closely with
customers to develop the artwork and package design, culminatingin a
proof for customer approval.
John Milliken, the new VP of Operations, was asked by the presidentof
Bayonne Packaging, DaveRand, to analysethe organization’s operations.
The case study mentions how Rand asked Milliken to focus on what had
been deemed three problem areas within the organization. Those problem
areas werecost, quality, and delivery