Plugging a Multi-Million Dollar Hole
A major manufacturing company had a problem: too much waste in their Production area and several millions overspend in Purchasing. Everyone blamed everyone else but the Purchasing Department was especially singled out. 

When we talked to the Head of Purchasing, she maintained that their so called inadequate performance was because the Marketing Division did not communicate changes in brands, early enough. These changes affected the type and weight of paper used in the production process, which had to be ordered well in advance to secure a gain in international paper markets. She maintained also, that the production area needed to have more training on their machines in order to make the microscopic adjustments to the settings for the different paper weights.

The Production Director was scathing of her analysis. "We can't have different runs for different papers because the adjustments would take too long and disrupt production plans - she needs to get out of her office and see what's going on!".

• We gathered information from each department and drew up a profile of how they saw the other two departments. We engaged a purchasing professional to evaluate levels of purchasing spend.
   
• We held small workshops with a few people from each department separately to help them see themselves as the other departments saw them. This was followed by workshops between the production/purchasing and marketing/purchasing departments to get agreements on the description of the issue.
   
• Finally all three departments were involved in a problem solving workshop to agree the way forward. Hidden conflicts at personal and interpersonal levels came to the surface at this stage, even to the naming of unconscious male 'cliqueiness' at a senior female director of purchasing. These issues were dealt with in a sensitive and yet challenging way during an off site team building event, set up to help weld the top group into a high performing team.
   
• Further actions were agreed between production and purchasing regarding a more powerful purchasing presence in each of the production locations. It soon became clear to all, that the purchasing department had to change its main location and decentralise its operation. This involved creating a different structure within purchasing.
   
• A workshop was set up between purchasing and production to redefine roles and structure of the purchasing department. Several options were created and assessed by all who were affected in the changes, until a preferred option was agreed on.
   
• We then created a network chart and timings to implement the changes.

This assignment took eight months to complete. They implemented the changes as per the timetable.

"This is the first time I have experienced a consultancy project that actually works 100% and is accepted by everybody" said the MD.

We knew it would be accepted, because they each owned the problem, they each could see how they helped to create the problem and so they worked to uncreate it.

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Please note: case studies have been changed slightly where necessary to protect the identity of the individuals concerned.