ASSUMPTIONS AND THEIR ROLE IN COSTLY MISTAKES – PART 3

Fool proof systems never work; sometimes I am driven to this conclusion. See the

following story.

     The Factory had a type of special type of component which should be used for ‘Severe Service’. The only difference between the one which is used for ‘Normal Service’ is a special coating on the surface of the component. The order was for a special severe/service product, the marketing people conveyed to design department. Design department issued a special Bill of materials (BOM) suiting that. This BOM went to the planning department. When the planning Engineer raised the indent (manually prepared Purchase requisition) for the items, the wrong item was requested, the one without coating . The Purchase Order was made out of the wrong item and it went for technical approval(vetting) to Design department. The error was overlooked by the design department. The Purchase Order  was released for the wrong item. There was delay in supply of the item from the supplier. Everybody was following up that item. As soon as it arrived, the item was inspected as per Purchase Order(as it was for “without coating”), used in the assembly and then went for testing.

    The product withstood to the ‘Severe’ stage and final testing, later it got installed at the customer’s project(may be a case of factor of safety).

    How did this get exposed that the wrong items went into the product?

     Later there was a similar order for another customer. Again wrong items got ordered. That day, the line supervisor for the assembly was on leave and another supervisor was officiating for him.

     The new supervisor checked the items as per specifications required and found that it was in variance from the BOM. He raised the alarm. Then QA checked the previous order, just in case . The error was identified only then.

     What is the root cause here? In how many places did ‘ASSUMPTION’ wreak its havoc?

ASSUMPTIONS AND THEIR ROLE IN COSTLY ERRORS – PART 2

There are a few things wrong with our industrial management culture.

They are:

1.      Assumptions

2.      Over confidence

3.      Bluffing

4.      Blaming

5.      Finding a scapegoat

Another case in the point is as follows:

Customer order requires the border of a product to be made with another fabric, the line supervisor assumed that it should be safe-edge (made of same fabric). 30 pieces  were produced that way.

     30 pieces got inspected by the QC and cleared for dispatch. Then also, it was not found out.

     Now it has gone to the customer and it is going to be a high value claim.

Root cause – considered the order as a repeat order of the previous order, without verifying the stipulations of the current order. Groupthink also contributed to the error.

learning: never assume that the other person is incapable of errors 

ASSUMPTIONS AND THEIR ROLE IN COSTLY ERRORS – PART 1

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?

sentiments of the boss

if the sentiments of the boss see corrective action on customer complaints and the monthly objective achievement reports with the same intensity as the monthly billing and payment collection- we have won

how to make and send an e mail

I am reminding of the mail protocol we should follow, so that you take care without fail in all future mails,  any mail without these is not acceptable

1. always mark a copy to one backup mail id

2. mention

a)subject

and b)reference on the top

3. mention the purpose of your mail

4. type out the body of your message

5. list out the attached files if any in the mail itself 

6. anticipate any question the receiver may ask ,and try to cover that also in your mail

7. request the receiver,  for the action you want them to take based on your mail

request for an acknowledgement 
If you don't get an acknowledgement in one working day .resend the message, ask for reply

horror stories in audit part 6

Location Calicut

Large Dairy. The auditor raised a query that the FSMS risk rating system should be mathematically modeled and the decision whether the food safety risk was significant or not should be taken based on a risk priority number (RPN).

        However the same hazard assessment had been cleared by their own audit team member for another location (unit of the same parent company) in the group.

        I checked the model he had suggested as a template. Even for the “yes or no” questions in the hazard assessment, you have to assign marks 1,5,10 depending on the assessment, multiply all numbers together and then arrive at an “RPN”.

         It was “pure mathematical magic” What is the purpose? The Lead Tutor from the same organisation, who taught us, had asked us to keep the rating model simple. The auditor can suggest anything and go away. The Food Safety team will then have to pointlessly waste their time (in calculations-like probability of earthquake or rains- for which super computers have to be used for).

         I believe the management systems are for “better practices” to be in built and control risks, not to make brilliant mathematics to impress and confuse.

Whither auditor consistency

Horror Stories in Auditing 5

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here.

5. Location Trivandrum

Auditor team from the leading Certification body of the pleasure capital of Europe, arrived from Delhi. It was a multiple day audit. The auditors were behaving like headmasters.(Arrogant)

         The auditors had come (mostly retired people) first time to this part of the country. They had heard that good spices will be available in Kerala. They made their list and handed over their demands to their counterpart in the client organisation

        The MR (lady) prepared the list and arranged purchase of separate 4 bundles of spices, intended for each member of the team. The spices (supposed to be complimentary and costing thousands of rupees) 4 bundles were handed over to the auditors. Half the team left on the last day by 11 a.m. They carried with them all the four bundles.

        The M.R was flabbergasted; she had to once again arrange two bundles for the remaining team.

Whither dignity of auditing?

Horror Stories in Auditing 4

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here.

4 Location Trivandrum

The European C.B auditor arrived late at night on Sunday by flight from Chennai. The driver who picked him up asked whether he needed dinner. The auditor said he didn’t need dinner. The company had arranged the stay in a transit flat located above their own office (which was in a commercial building).

        On arrival at the transit flat at eleven p.m, the auditor suddenly asked for food. Since no caretaker and cook were posted in transit flat, that could not be arranged.

        Then the auditor retired to his room. He was not satisfied with the arrangement.

        He called the receptionist of the office (lady) at night and told “if you cannot afford 1500/- for a decent room, I would have paid you for it”, the room is uncomfortable”. She called MR (lady) at night and informed about it. But it was too late. The damage was done. The next day the MR said, it was because the auditor saw a cockroach, in the flat.

Whither dignity of auditing?

Horror Stories in Auditing 3

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here

3 Location Cochin

A large food exporter was being compelled by all the European buyers to take Food Safety Management System certification. 

The requirement was confirmed. Consultant submitted an offer, the offer was accepted and the FSMS work commenced.

        Shortly after that, the MD decided that they would go for a more tough certification Standard for Food Safety, required by the Europeans.

        The certification body from the European industrial power house stepped in. They agreed with the MD to do a gap analysis, training, internal audit, manual preparation and also clear the Food safety System certification.(An offer which nobody can refuse in words of “God Father”).

        The MR called Consultant and asked to short close the existing order. Consultant had no choice but to agree. The CB man had said they will bill in a benami name for portion of consulting work they are doing. 

Whither conflict of interest?

Horror Stories in Auditing 2

Horror Stories in Auditing

2. . Location Trivandrum

The European CB’s auditor arrived morning by flight from Chennai. His return ticket was booked by train that evening by the overnight Express. He suddenly came up with the news that his close relative is in ICU and he wanted to return by flight to Chennai. 

The arrangement of one way flight and Air conditioned coach train ticket was part of the contract agreement. The MR had no approval authority for booking the air ticket. Moreover due to peak season, the train ticket itself was booked on TATKAL basis at higher cost.

        The MR was quite sure that the ICU matter was a “cooked up case” and he could see that no phone calls were coming to the auditor from his house/relatives nor the auditor made any calls during the day, though other calls were coming on his mobile (normal ones).

        The MR went to his GM and got special approval and arranged air ticket for the auditor.”Why unnecessarily take risk”, he said. 

The GM said I have seen many officials behaving like him.

 
Whither dignity of auditor ?