How to think like a manager....

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Mike1144

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Just a little background. We use an assortment of standard steel items in the assembly of our products. Some items will of course will be used more then others. We try to keep a reasonable stock of all items just in case they are needed. Recently we got snagged with zero inventory of one of the less used items. The main problem is the production department failed to maintain adequate stock of standard items.

Solution A : Scold production for not tracking stock levels, hire out-side shop to help quickly rebuild inventory.

Solution B : Do nothing, **** happens sometimes. The problem will not likely occur again, so worrying about it will just waste time.

Solution C : Hire a consultant to investigate the root cause of the problem. After spending $5000, realize someone just forgot to check stock levels.

Solution D : Demand engineering department rework their standard detail to only use the part that was lacking, so that production department will be less likely to forget stock levels, as this part will be used more often. (btw, the less used item is less used because it is less efficient, costs more, and is more costly to ship. It is only used for special cases where typical item won't work. )

 
Solution C : Hire a consultant to investigate the root cause of the problem. After spending $5000, realize someone just forgot to check stock levels.
That screams of today's kind of corporate inefficiency and waste.

Follow up to Solution C should involve management and bean counters scratching heads wondering why they didn't turn profit.

 
it is a trick question. the consultant would cost 10x as much and probably come up with D as the solution

 
Solution D : Demand engineering department rework their standard detail to only use the part that was lacking, so that production department will be less likely to forget stock levels, as this part will be used more often. (btw, the less used item is less used because it is less efficient, costs more, and is more costly to ship. It is only used for special cases where typical item won't work. )
Sounds like a JIT problem to me.

 
E....None of the above.

Blame a a new engineer for whatever happened and write him a memo saying that the company has no training program but he is expected to take care of his professional development so he can solve/take decissions on situations like this.

 
Solution E -

Get sidetracked on corporate visit with VP level personnel... Spend 60k on cleaning up, painting, and making the place look good. Not approve money for anything for next quarter because budget was busted on cleanup effort - so root cause was not found, and we still need to maintain / improve numbers without spending any money.

VP visit happens, kiss ass happens, as soon as VP is gone - engineering get's beat up because we can't be "creative" in solving issues while sticking to budget.

Managers go out to steak dinner to celebrate rave reviews after visit, request engineering to work weekends to make ends meet - as OT is not paid to salaried employees and it's "free".

 
Solution E -
Get sidetracked on corporate visit with VP level personnel... Spend 60k on cleaning up, painting, and making the place look good. Not approve money for anything for next quarter because budget was busted on cleanup effort - so root cause was not found, and we still need to maintain / improve numbers without spending any money.

VP visit happens, kiss ass happens, as soon as VP is gone - engineering get's beat up because we can't be "creative" in solving issues while sticking to budget.

Managers go out to steak dinner to celebrate rave reviews after visit, request engineering to work weekends to make ends meet - as OT is not paid to salaried employees and it's "free".
I love the coorporate world. I guess the VPs and managers like it more than I do. Man Oh Man, I have heard about bonus money they get in my company and two years of my salalry would not make for one of those.

 
I opted for solution A, or even B if I was feeling lazy. The actual answer was D. We have actually changed our standards as of now. I equated it to buying a new umbrella everyday. Rain or shine. Well on sunny days you would buy two, just in case.

 
I would vote for solution B for the most part (with a small scolding to whomever was supposed to watch the stock levels)

 
how come nobody suggested changing the detail for the job that needed the depleted stock to something using parts that are in stock and provide immediate delivery to the customer, simultaneously ordering more of the depleted stock. the impressive scramble to cover the unfortunate event will buy time to get more of the depleted stock should a redesign not be feasible, but the customer will still be happy due to the effort to correct the problem. Bonus: bill client for extra time spent trying to keep thier project on schedule.

 
how come nobody suggested changing the detail for the job that needed the depleted stock to something using parts that are in stock and provide immediate delivery to the customer, simultaneously ordering more of the depleted stock. the impressive scramble to cover the unfortunate event will buy time to get more of the depleted stock should a redesign not be feasible, but the customer will still be happy due to the effort to correct the problem. Bonus: bill client for extra time spent trying to keep thier project on schedule.
Good question!

Honestly, my first job was for a manufacturing company. Engineering was concidered "a bonus" and the sales department ran everything. In fact, sales would go directly to the shop to get details drawn up and the project sold. :poop:

I'm never going back to the manufacturing side again!!!

 
Well, all that fuss was for nothing. Our general manager put things back to the way they were. He originally supported the idea but did a 180 on us. Now the manager that thought up the idea is upset because he was overruled on appeal. He's apparently frustrated with having to work with a bunch of "teen-agers". Apparently, I'm younger then I thought. The youngest in our department is 29. I'm 31.

Rational ideas and good engineering are the defining characteristics of teenagers in this guys mind.

 
My office's action would have been:

Nothing - the owner's are still making hand over fist and don't care as long as they have the latest Mercedes or BMW in their parking spaces.

 
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