Sun Hydraulics Essay - 1623 Words

Sun Hydraulics: Leading in Tough Times Case Study Executive Summary Sun Hydraulics, an industry leader of hydraulic valves and manifolds, has seen steady growth over the past eight years. It has been a profitable company throughout the years with varying return on sales. Presently Sun is constrained by declining sales and high labor costs heading into the present recession. The horizontal corporate structure has proven ineffective in ridding itself of low performing employees that are weighing down the company and thus decreasing profitability. It is time for Allen Carlson, president and CEO of Sun Hydraulics Corporation, to address the employees and shareholders of his decision on how Sun plans to deal with labor and profits†¦show more content†¦The organization is multi-functional, created in Koski’s vision of â€Å"horizontal management†, with no job titles, no hierarchy, no departments, no budgets, no direct sales channels, etc. The employee’s feel strongly about this structure, as Chairman Cly de Nixon put it, â€Å"Sun’s unstructured environment is the key to our quality.† This unique approach created an active exchange of information among engineering, manufacturing, marketing, and commerce. This horizontal structure does have a downfall, unproductive workers can hide or simply do what they want and choose not to cooperate. Overall the structure seems to work for Sun, and employees genuinely are empowered to work for the greater good of the company. Financially speaking Sun Hydraulics has seen measure growth in sales from 1996 through 2000. Their revenues have grown from $47,374,000 to $66,268,000 from 1996 to 2000 respectively, but I was disappointed in Sun’s fluctuating profitability during this same time, seemingly caused by continually growing labor cost. As a percent of sales, profitability fluctuated from (1%) in 1996 to a high of 7% in 1998. There were steady increases in Labor and Manufacturing Overhead that have adversely affected the bottom line from the high water mark in 1998. As Allen looks to the future he faces aShow MoreRelatedNumerical Modeling And Validation Of Neo Hookean Materials2147 Words   |  9 Pagesutilized in the automotive manufacturing industry. Power steering units are generally hydraulic systems designed to assist in the steering of the wheels. Generally, the hydraulics pressure is generated from either the geroter (generated rotor), or a rotary vane pump, which are driven by the engine of the vehicle. The turning of the wheels is done by a hydraulic cylinder which has a force applied to it from a hydraulic cylinder, which is directly controlled by valves allowing for flow according to theRead MoreUse Of Hydraulic Systems Used From Ancient Egypt2203 Words   |  9 Pages______________ 1.1 Chronology of Hydraulics A machine could be described as a device which reduces human effort. Machines consist of various components which perform their intended operations to give the desired result. Engines, Vehicles, computers etc are all examples of machines we come across in our daily lives. Hydraulic machines are those devices which use the power of a liquid to perform simple work. These machines are based on the principle of hydraulics which deals with the mechanical propertiesRead MoreTHIS ESSAY IS ABOUT HOW AUTOMATIC TRANSMISSION WORKS AUTOMATIC TRANSMISSIONS HAVE ALL THE FEATURES OF MANUAL TRANSMISSIONS AND A LOT MORE. HAPPY READING...4002 Words   |  16 Pagesa huge assortment of parts in a fairly small space. Among other things, you see: An ingenious planetary gearset A set of bands to lock parts of a gearset A set of three wet-plate clutches to lock other parts of the gearset An incredibly odd hydraulic system that controls the clutches and bands A large gear pump to move transmission fluid around The center of attention is the planetary gearset. About the size of a cantaloupe, this one part creates all of the different gear ratios that the transmissionRead MoreEnergy Resource: Natural Gas and Solar Energy Essay1215 Words   |  5 Pagescompounds. Natural gas is also highly flammable. 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This makes solar energy better option then the use of fossil fuel, however there are a couple of challengesRead MoreTaking a Look at Greek, Chinese and Indian Civilizations1995 Words   |  8 Pagesare the Earth spins on axis, theories of the motions of the planets according to the sun, formulas about the rotation and lunar orbits of Earth, described numerical and geometric rules for eclipse calculations, and he is the first known astronomer to have used a continuous system of counting solar days (â€Å"Aryabhata I†). Other Ancient Indian astronomers also came up with a cycle to synchronize the motions of the sun and the moon. Around 500 A.D., Aryabhata presented facts and ultimately a theory theRead MoreSolar Energy is Superior Essay991 Words   |  4 Pagesscientific process called desalination. Desalination is a chemical process in which natural compounds are separated from water, making the water clean and drinkable. Traditionally, sea water is propelled through hydraulic pumps which create a flow to separate the water from the sea salt. Hydraulic pumps require certain chemicals that are harmful to humans and these chemicals sometimes are cross-contaminated in the drinking water being produced. Personally, I don’t want to drink chemicals that are threateningRead MoreThe Hydraulic System Of Automatic Transmission System Essay1350 Words   |  6 Pages The hydraulic system in automatic transmission gives the system a smooth running which works under the basis of normal hydraulics. This consists of a complex maze and tubes that transmits the transmission fluid under pressure to the torque convertor and all other parts of the transmission. Present generation automatic transmission system is more complex and are assisted with computerized electrical components. Shift controlRead MoreAmerica Should Pursue Alternative Energy Sources Essay1235 Words   |  5 Pagesand 33% from soft-energy (alternative sources)† (((Smil, 47))) Most of the energy we use on a daily basis is not produced using clean methods. Some alternative energy sources that are already in place within the United Stats are wind, solar, and hydraulic. First, wind power is one alternative energy source that America should pursue. Wind power is one of most noticeable of the main alternatives. The power of wind is captured using tall wind turbines or windmills. These turbines are often found is