Page 6 - Fedral Mogul News Collection
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Bradford United News - Issue 1                                          Challenge 2000 - continued from page 5


        The Purchase & Supply                  Quite rightly, not only have these  The Finance Challenge
                                            action teams cut across the various ar-
        Challenge                           eas of the business but they have been
                                            instrumental in identifying areas where  t is all too easy to dismiss finance
             hris Buckler’s team in the pur  skills need to be improved – whether  departments as being no more than
             chase and supply area plays one  that’s customer handling or computer Ipaper chasers. The truth is that with-
        Cof the most important role’s in the  handling.                         out the due diligence of the Finance
        company – getting the right product in                                  team, the resource of the whole of the
        the right quantity onto the warehouse  The Warehouse &                  rest of the business would probably be
        shelves at the right time without over-                                 squandered in ill-directed effort and
        stocking.                           Assembly Challenge                  sloppy paperwork.
            The major challenge for that de-                                       The effect of inefficient administra-
        partment during 2000 will be to achieve    ith the biggest single team on  tion is to add cost into the business.
        and maintain ‘A’ rank availability at       site, Ian Fleming, literally  Mistakes mean dissatisfied customers
        100% and to strive for a minimum ‘B’ Wcontrols the nuts and bolts of    which means not only that we don’t get
        and ‘C’ rank availability of 95%.   the business. With approximately 4000  paid on time but also that we pay twice
            Sounds easy. But the secret of the  thousand part numbers a day to be picked  to do the same job over. So, the Finance
        Key Goals Plan is that it gets behind the  and packed and shipped, what goes on  team has a huge part to play in helping
        wish list. First it identifies the activities  in the warehouse has a big part to play  to reduce transaction costs by focusing
        which are preventing targeted       in improving customer service.      on the control of obsolete stock, run-
        availability being achieved and puts in  Getting things rights first time must  ning an efficient credit note system, and
        place actions to remove those obstacles.  be a major focus and detailed plans are  improving inventory record accuracy.
        Under Chris Neill, a team is looking at  already under way to identify and cor-  Ironically, for the team which, in
        reducing back orders, Gary Knowles  rect the causes of picking and packing  businesses throughout the world, has
        and his team are investigating stock-  errors, shipping errors and late des-  a reputation as paper-pushers – one of
        out causes and Ian Fleming is creating  patches, eliminate ‘bouncers’, reduce  Finance’s primary concerns is to get rid
        a plan to achieve binning of stock on  the frequency of carrier complaints and  of paper altogether and introduce elec-
        receipt.                            to help streamline the returns proce-  tronic recording to speed up the flow of
            Long-term, Chris’s departmental  dure.                              information around the business.
        objective is to assess the management  Just as important is to provide what
        of the whole supply chain, to change  the customer is already telling us he  The People Challenge
        the focus from anticipated forecasting  expects from us which is to get the
        to demand replenishment.            availability right and cut the costs
                                            entailed in delivery. And that means    he biggest challenge any company
        The Commercial                      more than simply renegotiating supplier  faces  today is to make sure  that
                                            contracts – although that is part of the  Tevery single employee knows what
        Challenge                           deal too – during 2000, the long-term  role he or she is playing in contributing
                                            challenge will be to embrace lean   to the overall success of the company
                                            manufacturing techniques.           and knowing where that fits into the
              nder the leadership of Robin                                      overall plan – and, most important,
              Longdon, all the areas which go                                   having that contribution recognised and
        U to make up the Commercial                                             valued .
        Department are involved in                                                         Without that plan – the
        some form or another in                                                        glue which holds us all
        helping to improve our service                                                 together – it’s simply too easy
        to the customer.                                                               for people, without meaning
            The first question we asked                                                to, to be working against each
        was – what does our customer                                                   other, or be following a less
        not like about our service?                                                    important objective, or getting
            The answers have set off                                                   it wrong because they simply
        no fewer than nine action                                                      didn’t understand the process
        teams to investigate everything                                                correctly or didn’t know the
        from the way we structure the                                                  focus had changed.
        teams fielding sales enquiries                                                     The Federal-Mogul em-
        so as to provide a single                                                      ployee survey has highlighted
        contact point (under the                                                       many areas of concern. The
        leadership of Janet Croft) or                                                  concern now is to demonstrate
        other queries; to how to                                                       a willingness to work together
        improve the credit notes                                                       to improve against all those
        procedure (leader Charles                                                      areas – better communications
        Saer); to how to reduce picking                                                from top to bottom of the or-
        and packing errors (leader                                                     ganisation, proper reward and
        Graeme Morpeth).                       Lean manufacturing is all about  recognition schemes, effective skills re-
            But the process doesn’t stop there.  stripping the processes right down to  quirement identification and the plans
        Anyone, regardless of whether their  their bare essentials to identify where  and commitment to deliver them, cel-
        contact is direct or indirect, whether  the potential breakdown points are and  ebrate success.
        their allegiance is to Commercial or  re-building them so that each stage of  The challenge is to make Bradford
        some other area – after all, the    that process is credited with being as  a good place to work, where people are
        customer isn’t going to be impressed by  fast and efficient and as cost-effective  treated fairly and honestly and with
        a system which breaks down because  as it is possible to be.            respect.
        people work in different departments -  It’s a process which can be applied  The Federal-Mogul core values are
             who has a part to play in fulfilling  equally whether it’s actually a  a good place to start. But they have to
      6      a customer order or query is   manufacturing, assembling or office  be more than words on a page. We have
                                            environment. In other words, getting
             another link in the chain of getting
                                                                                to think about what they mean and
                                            smart about the way we do business.
             that service right.
                                                                                mean to deliver them – all of us.
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