Modern Oak Furniture Limited had been in business for more than 40 years, serving customers in Southwestern Ontario. The business consists of three different divisions Custom Designs Division Manufacturers crafted items, such as dining room suites Kitchen Cabinets Division Manufactures kitchen cabinets Banister Division Manufactures and installs quality oak railings   Each division reports to a Vice-President, who in turn report to the President of the company, Mr. Frederick Johannsson, who was also to founder of the company. Total sales for all divisions are projected to reach 10,000,000.00 in the current fiscal year.   Mr. Johannsson has been quite pleased with the performance of two of the divisions, Custom Designs and Kitchen Cabinets, which together account for about 85% of the company’s sales revenue. He does however, have some concerns about the Banister Division based on the previous year’s profit performance and the first week of August’s sales report for the installation crews as shown in the Department Monthly Report shown in Appendix 1.   Appendix 1 Installation department Monthly Report – August 9   Job  Number Crew Number Budget Amount Actual Amount Comments 7156 1 $1,100.00 $1,127.00 Waited ½ hour for customer 7157 2 $985.00 $1,154.00 Fit Problem with spindles 7158 5 $1,200.00 $996.00   7160 4 $1,500.00 $1,854.00 Recalled for Loose spindle 7163 2 $850.00 $865.00 Two split spindles 7166 5 $1,200.00 $1,385.00 Fit problem with spindles 7167 1 $1,450.00 $1,620.00 Customer changed design refit 7168 4 $1,800.00 $2,254.00 Spindle shims needed 7169 5 $1,100.00 $1,080.00   7171 2 $980.00 $1,200.00 Handrail rough finish 7172 4 $1,560.00 $1,860.00 Loose spindles 7174 1 $1,200.00 $1,650.00 Not to drawings 7175 2 $975.00 $1,320.00 Handrail cracked 7177 4 $1,400.00 $1,875.00 Fit problem spindles 7179 3 $2,250.00 $3,200.00 Recalled for loose bannister 7181 5 $1,900.00 $2,520.00 Fit problem spindles 7182 3 $1,800.00 $2,260.00 Fit problem spindles 7184 3 $1.750.00 $1,780.00 Customer changed design TOTAL   $25,000.00 $30,000.00     It is now the second week of August and the new installation market is just starting up. Bannisters are installed in new homes in the fall when the homes are nearly finished and ready for sale. There is some demand for bannisters throughout the year for renovations. However, this business is concentrated in the fall and quickly dies off before Christmas. Any problems with the bannisters should be resolved before the peak season begins.   On Monday, Frederick met with Thomas Marks, the vice-president of the division, and voiced his concerns. Frederick suggested that the meet again on Friday to discuss some further actions to get back on track. Thomas felt the concerns were a bit premature but agreed grudgingly. Thomas felt that some of his key people should attend, so Robert Colson, the sales manager, Peter Harman, who was in charge of the five two-main installation crews, and Henry Storm, the manufacturing supervisor, were invited to the meeting.   During the meeting, Thomas asked each one of his people to describe their individual concerns about the past week’s installation report.   Henry began by giving a brief outline of the manufacturing process that he was responsible for in plant.