Recently I
visited a plant which has incurred a claim statement of Rs. 17 lakhs.
The manager in charge of the unit got a new
job and left the organization without communicating. There was no proper
supervisor for the work also.
The workmen thought that the order they
have received is similar to the one which they had executed earlier. One container load of the product
was sent to OVERSEAS customer. The customer rejected it and wanted a full
replacement.
The replacement resulted in the company
incurring a loss of Rs. 17 lakhs due to the additional costs.
Root Causes – The communication chain broke
down, there was assumption which was damaging and also the inspection team
failed to inspect as per customer requirements (or sent the item as
concessional acceptance).
I consider this a management failure. What
do you feel?
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