What About the Vermin Problem by Peter Christian

Author:Peter Christian
Language: eng
Format: epub
Published: 2020-01-08T18:09:56+00:00

Change

(We Kind of Want It, But Not Really)

Too many companies know they need to change, whether it’s because things are not working well or competition is nipping at their heels, and to take the next step forward they need to do things a bit or perhaps a lot more differently than they are today. As most humans are, they tend to be reluctant to change. They have become comfortable in doing what got them to where they are and aren’t willing to make the changes necessary to improve.

This was the case with a very large company with which my consulting company became engaged. They were extremely successful and were the number two volume company in their consumer products industry in the U.S. They had an extremely dedicated and hard-working staff. But there was a concern that they were going to have to do things differently to continue growing. Also, they were entering a new market in their industry and the demands on their production and delivery of items now would be under stronger scrutiny by a set of new clients. Quality and price also were under greater pressure than ever before.

Our challenge was to help map a course to navigate these challenges. The first action was to study how production and the inventory of goods were handled and what changes were needed to meet the next goal — an estimated 34% overall growth in sales over the next three to five years.

Extensive studies were done and interviews and data collected from the divisions of Marketing, Sales, Customer Service, Planning and Scheduling, Operations and Warehousing and Shipping. All the procedures were documented and a flow charted for each function, as well as one massive flow diagram for the entire organization.

After months of study that included listening to the concerns of all participants, an analysis of our findings was developed and discussed with the company’s leadership team. After much discussion, we concluded there were three areas that needed improvement. These were:

Process: The way in which the company projected annual and future sales growth was not much different than what it was using when it was much smaller and growing. Management relied on a few experienced employees who made the determination of what was to be made, how much would be made, and where it would be made. They were using their past knowledge and intuition, but the size and magnitude of the operation was overwhelming and they could not keep up with the demands. With the venture into a new market for their products which was uncharted territory for them; they were having trouble meeting the increased demand. So, the process had to change. Better forecasting and planning tools were needed and improved information from the Sales division about client needs was necessary. Sales and Operations Planning (S&OP) was used, but not as completely as was needed, so that also had to improve.

People: If the processes had to change, that meant that people had to change. Use of new tools, techniques and

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