Is failing permissible?
Peter A. Oglevie | TLT Shop Floor December 2010
Yes—but only after you’ve made every effort to satisfy the needs of your customer.
We won because we tried.
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I always tell my children it is alright to not like something as long as they try it. However, I don’t like it when they tell me “I don’t have time” or “I can’t do it.” To me, these are just excuses. You can always find the time if you make the effort.
The shop floor also requires scheduling to accomplish its tasks. The operator must be in place, the machine open and all materials ready. If any of these components are forgotten, the order cannot be completed.
I’m reminded of a conversation I had with Charlie, who told me his company was about to run out of lubricant the next morning. His production line consisted of two large transfer presses, trim presses, an automated welding line, washer line and paint line. Unfortunately, the line was idle, costing the organization several million dollars.
I was working in our plant and spoke with Karl, our production manager, about the problem. I asked if we could get the lubricant made, shipped and to the customer’s facility before they ran out.
Karl’s reply: “No way.”
Meanwhile, I was facing a three-step process to keep the customer’s line from shutting down.
First, I had to convince my team we needed to try before we could say no. I spent 20 minutes explaining the customer’s production line and the severe cost of having it down. There is nothing like shutting a production line down to make a customer look for another supplier. However, Karl and his team dug in their heels, and we got the lubricant produced, passed through quality control and packaged, something we felt very good about.
Second, we needed to figure a way to make an unscheduled delivery 250 miles away. Again, Karl worked his magic. He managed to find an express service to make a delivery of the barrel before the deadline. He explained the cost to me, and I told him the expense of having the line down was far greater. The customer was glad to eat the extra charge.
Third, we need to analyze and correct the problem of why the lubricant ran out prematurely. After the crisis was averted, Charlie and I began our investigation by visiting those working on the line. We discovered the operators were running the lubricant at a concentration nearly double the recommended level. Charlie and I agreed to schedule a training session on concentration control.
Next, Charlie and I asked his purchasing agent how the order process worked. The purchasing agent counted on the usual order interval instead of actual barrel counts to determine the timing of the order. Charlie explained production variables, the importance of actual counts and the cost of a line going down. We implemented a cost-tracking system based on actual counts so this situation would not happen again.
Finally, we held a training session on concentration control that resulted in annual savings of $30,000. It was one of the largest cost-saving measures Charlie’s company implemented that year.
We won because we tried. But I wondered—if I had not been in our plant that day, would we have tried to get the order out or just said no? Would we have scheduled a training session? Would we have been viewed as our customer’s partner? Could we have allowed a competitor to get a foot in the door?
A wise man once gave me permission to fail as long as I tried.
Pete Oglevie is president of International Production Technologies in Port Washington, Wis. You can reach him at poglevie@wi.rr.com.