Manufacturing
flexibility is getting a lot of attention these
days. Recently, much of the discussion at the
Automotive News conference held in Birmingham
was on the need to be "flexible". It's ironic
that manufacturing flexibility is considered key
to achieve success in the automotive industry
since so few actually are either flexible or
successful. Maybe there's more to it than just
manufacturing flexibility.
To be clear,
flexibility can take many forms. If you can
change die setups quickly without penalty to
output or productivity, you're said to have
machine flexibility. However, it may not be
enough. Why? Because flexibility only counts if
the customer is better served as a result. Being
"machine" flexible can be negated by functional
inflexibility. Functional inflexibility might
come from a hierarchical organization structure
that restricts information sharing between
functional areas. The discipline of the
organization overrides the flexibility to
respond in one of the functions such as
manufacturing.
It's 2 pm on a Friday when a call comes in to
the Q/A manager's desk at the Atlanta terminal
of a major freight company (annual revenues in
the billions). It's a customer service
representative who is transferring a call from a
panicked customer, a member of the Birmingham
Quilters Guild. She has been told that a package
which had been scheduled for Thursday delivery
would not be arriving until Monday. The problem
is, the package contains special quilts that
make up an international exhibit that are to be
displayed at the guild's annual quilt show. The
show will be over on Sunday, so a Monday
delivery would do her no good. The quilts were
originally misrouted by another terminal and
have finally made it to Atlanta.
The customer offers to drive over from
Birmingham to pick up the quilts but is told the
trailer is sealed and no one is allowed to break
the seal. However, realizing the trailer will be
in Birmingham by 2 am the next morning, The Q/A
manager puts the customer on hold and calls his
counterpart in Birmingham. Even though there's
no customer pickup allowed on Saturdays the
Birmingham Q/A manager volunteers to call the
customer as soon as the package arrives and is
unloaded.
The relieved customer arrives at the
Birmingham terminal at 6:45 am, pick ups the
package containing the quilts and the show goes
on without a hitch. On Monday, the terminal
manager receives homemade cookies along with a
thank you card. While not quite sure what he's
done to deserve them, he notes that the cookies
are his favorites and shares them with the Q/A
manager who then fills him in on the story.
Another success story and an example of
flexibility; except that's not the way it
happened.
In fact, on the fourth frustrating call to
customer service Friday morning, the customer
was told, "it will be delivered Monday. That's
the best we can do." Finally, the customer got
the representative to tell her the package was
in Atlanta. She asked to speak to the terminal
manager but was given the Q/A manager instead.
When the customer said, "I'll come to Atlanta
and pick the package up", the Q/A manager said
that the trailer was sealed and the seal could
not be broken. When the customer expressed
amazement that the trailer was going to sit in
Atlanta over the weekend, the Q/A manager
revealed the trailer was in fact going to
Birmingham that night. When pressed, the Q/A
manager gave the customer the phone number of
the terminal in Birmingham but didn't know the
name of his counterpart in Birmingham.
A call to the Birmingham terminal manager led
instead to the Q/A manager who, after hearing
the problem, said it wasn't her fault and there
was nothing she could do; Saturday pickups were
not allowed, the people would have left by 8 am
anyway. The customer said she knew the package
was arriving at 2 am and would be glad to come
before 8 am to get it. The Q/A manager repeated
that no pickups were allowed on Saturday so the
customer asked to speak to the terminal manager.
Since the terminal manager was at lunch, the Q/A
manager said she would give him the message.
The customer hung up, thought about her
options and called her stock broker who gave her
the name of the president of the freight company
and a phone number for investor services since
no other contact information was on the web
site. Investor services didn't answer so she
called back to the company's customer service
asking to speak to the president of the freight
company. After a delay the customer was
transferred to headquarters. She finally was
able to explain the problem to an assistant to
the president. From there, things started to
fall into place; the customer did pick up the
package at 6:45 am and the show went off without
a hitch.
The point of this story is that the higher
one has to go in an organization to satisfy a
customer, the less flexible that company is. In
this particular case, this freight company has
an express service with next day delivery.
Despite that, the organization wasn't customer
centered enough to empower people to help a
panicked customer. Before you think of yourself
as flexible, find out how well your people can
help a customer without getting you involved.
*Journal of Operations Mgt., April
1998; Koste, Malhotra / Definitions of Flexibility Dimensions