This blog posting is a continuation of Part 217, how I gotten started in TOC and more specifically an integrated Lean, Six Sigma and Theory of Constraints improvement methodology. Let's start this posting by describing some specifics about the plant layout.
The plant itself had two distinctly different
technologies attached to it, meaning that being skilled on one side of the
plant, had nothing to do with the skills needed to work on the other side. On one side, we made fiberglass parts, bodies
and hard tops for such noteworthy vehicles as the Dodge Viper, the BMW Z3, and
even a few parts for the Corvette. The
Corvette assembly plant was only three miles away and I wondered to myself,
with our close proximity to their plant, why we weren’t their primary supplier
of parts. On the other side of the plant
we made convertible tops for the Camaro, the Mitsubishi Eclipse, and several
other automobile types. Scattered in
between both sides of the plant we also made other small parts for a variety of
automotive companies.
Because the plant had two distinctly
different work environments, there were two Operations Managers, one for each
side. I was really happy to learn that
since I had virtually no operation’s experience, at least I someone who had
operations experience, or so I thought. I
would soon learn that just because someone had been an Operation’s Manager,
didn’t mean that they knew what they were doing. In fact, one of the Operation’s Managers had
been at the plant for 10 years and the other one had been hired about the same
time I was and his background was mostly from a small job shop. I quickly came to realize that neither one of
them would be much help, at least not in the short term.
I also had a plant Accountant that worked for
me who was very much into traditional Cost Accounting. He very much believed in using efficiency and utilization as primary metrics and truly thought that the key to
profitability was based upon how much money he could save. On my third day at this plant, he came to me
with a list of people he thought should be laid off. I just smiled and said, “No thank you….I have
no intention of laying anyone off.” He
responded by saying something like, “But we just lost $600K….how are we going
to reduce our losses?” I told him I had
an assignment for him tonight and that was to read the rest of the book I had
given him. I told him to meet me at 7:00
the next morning to discuss what he had read.
He swallowed hard and said that he had only read the first 50 pages and
that he couldn’t possibly finish it by tomorrow morning. He also told me that he knew how to make the
plant profitable. I asked him what he
believed was most important to this plant, saving money or making money? He was confused because in his mind they were
one in the same. After he left my
office, I asked my secretary to schedule a meeting with my staff for 7:00 the
next morning with the subject being, “To discuss what they had read in The Goal.
The next morning my staff arrived and I
passed them each a folded piece of paper and told them not to open them just
yet. I asked them if they had finished
reading the book I had given them and they all said that they had. I told them that they should be prepared to
begin running our plant just like Alex Rogo had done and that our ability to
stay open depended upon it. I then told
them to open the folded paper I had given them which contained a single
question inscribed on each piece of paper.
One by one I asked them to read their question for everyone to hear.
To be continued........
Bob Sproull
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