OK, another Big company that is in financial trouble gets some new college educated super geek that decides they need to do the new 6-Sigma (whatever) business practice. In order to do it, they THROW AWAY all kinds of stuff. Some examples...
1. If the tool box had more than one of a particular size wrench (i.e. two 9/16" combo wrenches) then one had to be thrown away in the trash. No employee could take it, it had to go in the trash.
2. If the spare parts inventory had more than one of the same item (i.e. two flange-seal gaskets) then all but one had to be thrown in the trash.
After a while, a valve needed to be replaced on a piece of equipment. To do the job, two 9/16" wrenches are needed to remove the nuts and bolts. Hmm.. can't do the job, only one 9/16" wrench. After finally removing the nuts and bolts and getting the new valve, the repair could not be completed because there was only one flange-seal gasket available and the job required two.
Now a simple repair job that normally took less than an hour to complete took almost 3 days because a new gasket had to be ordered with express delivery. Don't know the total cost of that repair, but with the admin cost (PO and associated paperwork), lost production time, wasted man-hours of operators that would have used the down equipment, etc. I am sure it was a lot higher and less efficient than it would have been to have two wrenches and a couple gaskets in stock.
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A company (company 1) that makes large carbon-carbon parts had several large waste containers of scrap (from broken parts, machining errors, etc.) A second company (company 2) could have used the large scrap pieces to make many smaller machined pieces.
Company 1 decided to get rid of the scrap. Company 2 was aware of this and offered to remove the scrap and PAY Company 1 for it as a bulk price for goods recieved. Company 1 said it would be too much paperwork hassle to do the transaction so had the scrap removed by a industrial waste removal company. The waste company charged 5-figures $$$$$ for the service.
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Last example. A company has a whole factory floor full of usable machinery and processing equipment. Some of it brand new and never even installed. They need to clear the space for consolidation and offered the items for sale. My company offered to buy a large portion of the items.
Some laywer got wind of the pending sale and stopped the whole thing because of fear of liability on the used equipment. We informed them we would sign wivers, etc. for all items, however the laywer refused. Now all of the equipment is going to be cut up to prevent it from being used, and then hauled off as scrap.
Now rather than making some money back for all the equipment, the copany is going to have to pay to have the stuff destroyed and hauled away.
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Have American companies become so wrapped up in what college educated clowns tell them that they are so willing to toss away oppurtunity to make money? No wonder they are going out of business all over the place.
