What’s That Smell?

At home, if we do not clean out our refrigerators or our food storage cabinets, after time, we will undoubtedly smell something going bad.

In companies, it is no different. Every time I enter a company for the first time, I can almost smell the trouble brewing. Perhaps “smell” is a strong word, but I can definitely sense problems. The signs are there by the looks, or lack of looks, I receive from the employees as I enter their assigned work space. In some cases, I may get the “What did I do now?” look, or “Great, they Know What I did!” look. One of my favorites is “If I can stay still and not make eye contact, they will not know I’m here” look.

Body language in companies tells quite a story about the stability of a company’s management system. Recently, I was dealing with a Quality Assurance Manager who, with his most serious face, explained to me how every person in the company was not following his procedures. He also used every quality acronym ever written in his explanation. I think that this was mostly to assure me he read all the books about quality management systems. After my tour of all the departments in his company, only one person made eye contact with us, and it was the “What did I do now?” face.

After the tour, a feeling of anger at the management and pity for the employees, suddenly came over me. Yes, this company stank of outdated cheese, milk, meat, and whatever else was rotting within the ranks of the company’s employees.

How does this happen? Most often, it boils down to “The Peter Principle.” As stated in the book of the same name “In a hierarchy every employee tends to rise to his level of incompetence.” (Source: Dr. Laurence J. Peter and Raymond Hull, The Peter Principle. Souvenir Press, 1969).

How does a person rise to their point of incompetence? Some people are Duck People, some people are Eagle People, and some people are Rabbit People. You are a Peter Principle person if you assume that a good floor worker (Rabbit) can be a good manager, and soar like an Eagle without training, experience and the inherent ability to lead. You cannot train a Rabbit to swim like a Duck, a Duck to soar like an Eagle, or an Eagle run like a Rabbit.

My 20 years in the military gave me the opportunity to combine my Italian Jersey City survival street skills with the systematic approach, which guided me from Apprentice to Chief Petty Officer and a NAVSEA Level III Examiner and Instructor in Management Systems. What this did for me was to help me recognize where my strengths and weakness lie in my leadership skills. Personally, I have a lot of trouble tolerating complacent employees, or employees who do not care that their decision caused collateral damage to other employees or departments. I am best suited as a consultant who can go into a company, identify the problem, call a duck a duck, set my sights on the problem and remove the problem while training a new style of employee. I do not have any allegiance with any of the employees, so my motivation is only for the good of the company as an integrated system. And, while the employees love it, the managers either love me or hate me, no in-between.

Every company needs to clean its refrigerator on a regular schedule. How do we do this? With an outside assessment from an impartial consultant with no affiliation to middle or lower management. The consultant must be hired by the CEO, president or owner to assess the following:

1.)      Company Vision and Goals – Long and Short Term

2.)      Managers Job Descriptions – Clear Statements of Primary and Secondary Responsibilities

3.)      Manager and Lead Lines of Responsibility and Authority – Clear, Defined and Followed

4.)      Leadership Effectiveness – Is the Peter Principle active in the company?

5.)      Perform a Short Gap Analysis – To identify the Problems and Recommend Adjusts to put the train back on track.

What’s in your refrigerator? Can I help your organization get back on track?

Measuring the Quality of People and Product

The following post was written by me and published this month by NDT Magazine. Below you will find an excerpt of the column. You can view the entire post on the publication’s Website by the clicking on this link.

The duties and responsibilities pertaining to the function of our nondestructive testing (NDT) inspectors have not changed in years, even though new manufacturing materials have been developed, and the inspection equipment technology has advanced. We could say that similar to the fire triangle (oxygen, heat and fuel), there is a business triangle (product, supplier and consumer). If one of the components is missing nothing happens.

As time goes by the bottom line is that all companies need assurances that they have a good business triangle in place, and one of the ways to achieve this is through the monitoring and measurement of customer satisfaction.

Some of my clients manufacturer products, while others provide a service. It is enlightening for me to see completely different companies experiencing the same problems. However, over the years, I’ve seen that most companies will devote the least amount of attention to the most important attribute in all companies─customer perception. Nondestructive relations (NDR) means not destroying your customer’s perception of your company through product or service you provide. If this relationship, trust and confidence as seen through the eyes of our customer are damaged, you will end up with a product or service that has no customers.

ISO 9001:2008 and all associated versions for Aircraft (AS9100) and Medical Device (ISO 13485) state clearly in Section 8 that the monitoring and measurement of key attributes such as customer satisfaction are required. Customer satisfaction is based on monitoring and measurement of the service and the processes used to provide the service. All companies need a real-time dashboard that represents their external eyes and ears. Real-time dashboards are the thing of the present, with the capability of each employee having a sophisticated device such as a Blackberry or iPad.

I would like to hear what your company is doing, or should be doing to ensure real-time customer satisfaction.

Service Industries and ISO 9001:2008

What is a service industry? The formal definition given by economists is “tertiary sector of industry.” In layman’s terms, the service industry is comprised of organizations that provide a “service” to businesses and consumers. Services provided can include accounting; plumbing, heating and air conditioning; computer repair; restaurants; travel and tourism; gardening and house cleaning, etc.

One of my current clients is in the service industry. They install and provide service in Heating, Ventilation and Air Conditioning, otherwise known as “HVAC.”  My experience in the service industry goes back much farther, however. In fact, after I retired form the U.S. Navy, I spent about seven years in a truck providing plumbing and heating service in New Jersey, and later in Southern California.

In the service industry, a plumber is not just a plumber – they are also the salesman, technician and customer service representative. They need all of these skills and much more to make enough money to support a family. Many companies utilize service technicians (i.e. plumbers) as sub-contractors. A service plumber will typically receive a percentage of the cost of the service.

However, this business model can put a monkey wrench into the ISO 9001 scheme of things. Essentially, the company is operating like an aircraft flying through fog. The pilot only sees his instrument controls, which tell him his altitude, speed, direction and other indicators that keep him from crashing the plane.  If the pilot were to lose his instruments, he could be flying upside down in the fog, without even knowing it. Similarly, if a company loses control of the quality of service provided by its technicians, it will have no idea whether it is meeting the requirements of ISO 9001.

ISO 9001:2008, Section 8 requires the monitoring and measurement of key attributes such as customer satisfaction. If the company is “flying blind” in its relationship with the customer, and leaving it up to the service technician to ensure satisfactory customer service, without monitoring or measurement, then they are in big trouble.

If you are a company that operates in the services industry, and are worried about making sure that you are in control of your customer service, give me a call today, and I’ll be happy to talk with you further about how to meet the requirements of ISO 9001:2008.

Thanks for reading!

 

Just-in-Time Manufacturing: How to Keep Production Running with Minimal Inventory Levels

Many companies, when operating using Just-in-Time (JIT) manufacturing struggle with keeping production running with minimal inventory levels, and look for tools and techniques to best achieve this. At the top of my list to tools is “good hardcore common sense.” I call it “Inelegance with Elasticity.”

The absolute best resource for keeping a production line running is having employees on the production line. This is one of the most overlooked assets.

To satisfy the board of directors, or meet the profit margin quota, many companies who implement “Lean,” do so to the point of having an anorexic work force. Today, production line employees are so overwhelmed with their daily quota, that they cannot stop to think, notice or care what’s going wrong, or what can be changed to make their job easer. In California, for example, some companies hire of non-English speaking employees for a very low wage, but the consequences can be devastating.

Employees are people, people who can physiologically can be pushed to the point of overload, or paid to the point of continual complacency.

I’m a veteran of the United States Navy, and in the 1970s the military implemented a program to capture repair time data. The command was to calculate how long it took to do every job onboard a ship, a Nuclear Submarine Repair Ship. The reason was to establish a standardized planning for similar work through out the fleet. They had us capture every minute of the day, including meals and breaks. This data was to be compared to other repair activities to establish the planning throughout the fleet. This was eventually adopted throughout the military, and later into the commercial industry.

Fast-forwarding 20+ years – on September 11th the United States came under attack by terrorists on our home soil. One of the civil service repair activities I was working with had a large backlog of shipboard equipment needing repair. This and other repair activity has a defined quota system with repair times strictly adhered to. When 9/11 occurred, the employees recognized the urgency and repaired the entire backlog and then began repairing incoming equipment in record time.

People are the key — there is no such thing as the best academically defined method or process. It is about integrating method and theory matched with personal ability of the workers. It is okay if you finish your job and walk around looking for an opportunity that may benefit the company (family).

Just-in-Time Manufacturing: Advantages and Pitfalls

When used in the right application Just-in-Time (JIT) manufacturing is the best method to keep your production line moving. There is nothing worse than a 25-cent screw stopping your production line. One of the biggest wastes in today’s manufacturing operations is waiting on material and approvals, which often results in “do-nothing” time.

As we all know, running out of parts stops production and stops shipment. Without shipment, there is no invoicing and no revenue.  This could lead to lay-offs. Repeated delays of on-time deliveries have a hidden cost of poor quality, which can result in the loss of your customer who got tired of hearing excuses for late product.

The challenge is that when it comes to JIT, most companies do not have a exit plan, or disaster preparedness plan to deal with the “what if” when JIT fails. If they did have a plan in place, and the company has been operating JIT for four or more years, the team that worked on the exit plan is typically long gone, or there is a lack of skill that could be used for the recovery plan.

The reality is that companies can easily lose control of the suppliers that provide JIT items. For example, one of my previous clients went abroad to China to produce water coolers that the client had designed manufactured here in the U.S. for five years. It was a great product and had good profit margins for the client, when production was done in-house. So why the change? The company was enticed by a salesman that said they could double their profit margin by manufacturing in China. All they had to do was unpack the water coolers from China and affix their company label.

Within four years, the returns from major retailers skyrocketed. By this time all the engineers and highly skilled technicians has been terminated. In fact, over the course of four years, many of the parts and material were substituted for lesser quality parts by China. The test data from China for product inspections prior to shipment was written in Chinese. As such, nobody in the company could read the data. The company had to have a distress sale to stop the bleeding. This is one example of a situation where what seemed like a good idea at the time, can turn any company into a nightmare.

Has your company, or a company you know experienced similar issues related to JIT? If so, I would love to hear about it.

Follow

Get every new post delivered to your Inbox.