Productivity, People Problems Solved
By Engineering Management Controls

This manufacturing company was experiencing problems costing it more than a quarter-million dollars every year. In addition to the basic dollar value, the difficulties were having a deteriorating effect on its overall business. Rather than growing and prospering with its unique products, the company was actually regressing from previous success levels.

Lack of proper management was the essential problem diagnosed by our Survey Analyst. Consistent decision making, sound policies and planning were not being used. For years the company was a manufacturer and supplier of specialized drilling equipment. The demand was consistent and the family made a good living from the business.

The owners used a type of personalized management that was fine when the company had only a handful of employees. However, as the company grew and developed, management techniques did not keep up with the increasing complexity of the business. In addition, issues like quality control, warranty costs and specific job costs were all unmeasured.

The lack of management control was accompanied by people problems. Some employees were upset over others not working as hard. There were employee concerns about the long-term success of the company. Productivity was dropping.

Good management is essentially achieving your objectives through other people. Once these other people begin implementing a specific plan, other problems become easier to solve. With this concept as the basis of the program, our management consultants developed a full program that corrected the management issues and provided a variety of specific recommendations for other improvements.

As part of the Organization for Management program that was accomplished, the GSMIC analysts revised the organizational structure of the company. Duties, responsibilities and job descriptions were developed for all employees, along with procedures for measuring performance.

The Business Reporting program included evaluating current management reports, along with refining the cash flow forecast procedure. We helped the company develop an annual budget to use in planning for profit and expenses. In addition, a flexible budget procedure was created to account for variable expenses, while offering an analysis and working tool.

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