Baldwin Piano & Organ Co. is overhauling production methods at its five factories, a process that could result in consolidation and layoffs later this year.
Chairman and Chief Executive Karen L. Hendricks said Baldwin is introducing ''synchronous manufacturing'' at its plants, which are in Mexico, Arkansas and Mississippi.
The technique aims to reduce inefficiencies associated with assembly-line manufacturing by re-arranging workers and their work into ''cells.''
Ms. Hendricks said the new process already has opened up about 40 percent more factory space at the company's Juarez, Mexico, plant.
''I expect there will be some consolidation,'' she said.
After all factories and departments go through the process, she said, Baldwin will assess employment levels. Baldwin employs about 1,200 hourly workers.
Baldwin said last week, in connection with a report about sharply lower fourth quarter and year-end earnings, that it has hired Lehman Brothers to help with cost realignment, product innovation and international expansion.
''Clearly, we think this re-engineering will improve efficiency,'' Ms. Hendricks said. The company hopes the benefits will show up in the second half of 1997.
Ms. Hendricks said Baldwin did not hire Lehman Brothers in response to Bolero Investment Group, a dissident shareholder group that has been pressing for a sale or merger of the company. In September, Bolero asked the company to hire an investment banker and said it would put the proposal to a shareholder vote if management did not respond.
Kenneth Pavia, general partner of Bolero, said he thinks that Baldwin's decision to hire Lehman Brothers, an investment banking and financial advisory firm, ''was calculated to prevent shareholders from voting on our proposal.''
Mr. Pavia, who is based in Newport Beach, Calif., said Bolero will continue to solicit shareholder votes for its own slate of directors. A date for Baldwin's annual meeting has not been set.
