6.4 THE DIRECTORS’ QUANDARY
At a company meeting some 12 months ago the directors advised salaried drivers, clerical staff, batch-plant operators, foreman, and plant manager that they were planning to invest in additional trucks. The directors expected this suggestion to be warmly received by employees. Instead, they were met with a barrage of complaints about antiquated concrete mixing machinery in the batch-plant, having to work unpredictably long hours, continual avoidance of employee suggestions about ways to improve productivity, and discontent that employees were being blamed for loss of customers. Clearly employees were unhappy and this, the directors’ latest initiative, did not receive the vital support for which they had hoped.
At this stage the Directors appear to be fully committed to investing in two additional delivery trucks and equally committed to determining how many trucks were needed to service customers best: once the optimum number of trucks had been procured and were operational, surely employees would be much happier? Despite procurement of additional trucks, and these being driven by salaried employees, again the directors find themselves faced with investing in additional trucks to meet customer expectations for responsiveness. However, business continues to be lost through the inability, from time-to-time, of ThreeTwoOne to deliver in accordance with customers’ unpredictable demands.
Faced with their quandary, the directors sought advice from engineering management consultants. In response to consultants’ advice the company began collecting data about key aspects of their business such as customers’ ordering patterns, responsiveness in dispatching orders, and delivery turn-around times. Directors hoped this information would assist in future business strategy development. Preliminary analysis suggests there are no problems with availability of raw materials.
It is intuitively obvious that more trucks are required, but now the directors are becoming concerned that even if trucks are procured employees may continue to be dissatisfied, customers will continue to take their business elsewhere and ThreeTwoOne will remain marginally competitive at best. The directors are worried about the company’s competitiveness, where best to invest, and what to do next. The problem remains despite the experience, intuition and judgement of the directors. Contrary to promising short-term improvements of the past year, long-term improvements remain elusive. Students are tasked, as engineering management consultants, to devise strategies to solve the directors’ quandry.