Business problems plague all companies from time to time. A Google search reported 33.2 million results on the topic alone. In my opinion, it is not the business problem itself that defeats people from solving it, but it is the fear the problem generates. Recognizing that difference is the first step into breaking down the problem into smaller elements. By identifying critical elements to the problem the solutions reveal themselves as a by-product of the process.
Paul worked for ABC Enterprises, a supplier of widgets, as the Inventory Control Manager. The company was successful in assembling widgets and had developed several different types of widgets ranging in size, features, and quality. To support shorter delivery lead times to their customers, ABC had a 80,000 square foot warehouse filled with components. A sudden increase in sales orders stretched ABC to their limits in assembly. Component shortages were reported for parts that were recently delivered, yet were unable to be found. The finger pointing started. The Purchasing Manager thought the Receiving Department was lagging behind in recording the receipt of material. Paul thought that the Purchasing Manager was not ordering and expediting material in fast enough. Several meetings were scheduled to figure out what was happening.
What fears has this problem generated for the managers, just by its very existence? In addition to others, probably, the top three fears would be as follows. 1) The fear that their reputations will be damaged when it is discovered that the problem originated in their department. 2) The fear that they will not be able to correct the problem fast enough, if it is theirs to solve. 3) The fear that they do not know how to fix the problem within budget and labor constraints.
How do these fears present themselves in the behavior of the managers? Here are just a few; 1) Defensiveness: an unwillingness to admit the problem might be in their department. 2) Denial: the problem is temporary due to fulfilling the high number of sales orders and will go away on its own when things settle down. 3) Blaming: on other departments as well as the lack of time, money, and labor.
ABC employed a problem solving methodology that helped them to identify the critical elements to the shortage problem that revealed the primary cause. In reviewing the issue of component shortages, clarifying the problem revealed that it was the components for widget B that were late to the assembly line most often. Defining that distinction made the problem of component shortages smaller than all components and made the managers now curious instead of defensive. They reviewed the evidence by tracking sample component orders from Purchasing to Receiving into Inventory and out to the assembly floor. Purchasing was about two days behind what they could have been in the ordering process. Receiving was one day behind in their process. They went to the Inventory component bins and found some of them empty. As they stood there looking around the bin, Paul noticed that there were components placed in odd places and at eye level which made them easier for the warehouse stock pickers to grab and deliver to the assembly floor. Only certain stock pickers knew where to look. When the next shift arrived, they found empty bins and reported the component as on shortage even though they were sitting right there in an unmarked location.
The managers were relieved that the root cause was something so easy to fix. They were impressed with the ingenuity of their well-meaning stock pickers to create short cuts to deliver components to the assembly floor not realizing the other problem they were creating.
The moral of the story here is not to have your stock pickers attend component shortage meetings. Rather, it is to employ problem solving methodologies that break down the problem and fear surrounding it by; thoroughly defining it (which widget components, widget B) into smaller elements (purchasing ordering process, receiving process, stock picking process) based on objective evidence (time and identification) to lead to the best solution.
Helen Ewing is a Business & Personal Coach with over 20 years ofManufacturing Industry experience in the Materials Management arena. She provides successful methods that solve problems in less time, with less money and with less effort through Coaching for Businesses and Professionals. She invites you for a visit at, http://www.1ewingroup.com
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