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Cost Productivity

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  • #54035

    Martin K. Hutchison
    Participant

    When it comes to selecting or justifying projects, it helps when the boss has a clue. For those who remember my previous two threads, my boss doesn’t. After walking away from a capital equipment request meeting where we heard one plant manager get his rear end handed to him, and my plant manager got his (my) request approved in 15 seconds because I did the math how the VP finance wanted it, we had the following exchange on productivity that shows that management needs lean / engineering economics training before they take the helm, not on the job:
    PM: We are spending alot of money but our cost productivity is worse than 2011.

    Me: Of course it is. We didn’t spend the money fixing the equipment properly like we should have in 2011 and now we are paying for it. The Turret Press FMS and the Laser are killing us.

    PM: (angrily) You cannot blame the whole plant on two people. That is just two people standing around.

    Me: Sir, For productivity you have to look at the earned hours and the rate to catch the value of the equipment. If you have a million dollars worth of equipment in our most expensive cost center running at 50% capacity that will kill your plant cost productivity worse than if a drill press is running at 50% capacity. If that is how people are looking at it then they are wrong.

    PM:Don’t you ever think you are wrong? You know, people are put into their positions for a reason, they know what they are doing.

    Me: (Missing the point that he was telling me to stop correcting him) Getting a promotion does not grant intelligence, ability or education. If it did, the VP Ops wouldn’t have got fired last month.

    How do you school this guy? How do I learn to shut up? Does the Hypocratic oath prevent Dr’s from giving guys like me botox to the larynx?

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    #193068

    Chris Seider
    Participant

    @martinkh
    1. I’d not publicly berate the boss on a forum like this–doesn’t help with the change management piece.

    2. Maybe that’s why the photo is blurry? :) LOL

    Cheers

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    #193071

    Martin K. Hutchison
    Participant

    1) It doesn’t matter- I got canned on Friday “at will”. I think it is a combination of knowing to much, and he wanted my salary to put into his cost-cutting budget to save his job. If any member of that company management participated in Isixsigma I would eat my hat- or sniff your hatband- whichever is grosser.
    2) Maybe the blurry photo is a “Back to the Future” thing as my career dissapears…

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    #193079

    MBBinWI
    Participant

    @martinkh – Sorry to hear that, however, if it helps any, it has happened to a lot of us. In similar situations, I’ve handed over a copy of “The Goal” to the individual and suggested that they might enjoy the story. And since it’s been discussed in management circles (although, surprisingly few have actually read it), when you give them a copy they might actually invest the time to read it. And if you get really desperate, you can buy the movie, but I won’t vouch for the production value.

    Chris’ hatband definitely would be the winner.

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    #193083

    Chris Seider
    Participant

    @MBBinWI

    Thanks, buddy. Cheers from down under…now done with lunch break.

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    #193084

    Martin K. Hutchison
    Participant

    Actually, we have been running the plant through basic lean training, and some of us through VSM training. We watched “The Goal”, and I encouraged the instructor to make it available for a second showing, and the PM and some others watched it two weeks ago. He is still too much of an idiot to get it. He doesn’t get subtlety or allegories. When the movie says “robots” our entire training class thought of one piece of equipment we have, but the PM is probably too dense to draw the line. As long as he can make people chase orders and pinch pennies and avoid infrastructure expenses, he can make plant numbers look barely good enough.. Now I just have to find a N. Texas job worth having, over to the job board…

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