Learning & Growth
The learning and growth portion of the Capsim was companies Erie’s weakest portion of the scorecard, with a score of 19 out of 60 for the 4 completed rounds. In the beginning of the Capsim, as an industry whole the employee turnover rate was 10 percent. In the next round Company Erie recorded the 2nd highest turnover rate in the industry with a 9.3 percent turnover rate. Our turnover was 100 percent voluntary because we did not release any employees throughout the Capsim. Company Erie continued to reduce their employee turnover percentage year after year, ending round 4 with a 7.9. In order to maintain a low employee turnover rate, company Erie will have to continue to invest in employee recruiting when new employees are hired and use normal work hours to make schedule, nor working overtime can be a tool to keep employees happy. The company’s employee productivity was horrible, in the first 3 rounds with a score of 1.7 out of 14. Company Erie hired 413 new employees but failed to spend the necessary money for training hours or to recruit good employees. This was discussed during round 4, as a result we hired less employees and spent almost twice as much on…show more content… Company Erie scored a total of 1.8 out of 12 on these new elements. Company Erie invested to reduce material cost and increase demand. The decision not to invest in R&D reduction was because the customers expected a certain product to be a specific age and investing in R&D posed a threat to that products age expectations. Going forward to utilize the TQM is totally based on the needs of the company. For example, if the company has high material cost than they should invest in material cost reduction through TQM but if the company material cost is not high than they should not invest and take zero points on their scorecards as we did for
