Judging organizational efficiencyPlant Management - Industrial

Oct 6, 2008 - Industrial & Engineering Chemistry · Advanced Search .... Judging organizational efficiencyPlant Management. W. Von Pechmann. Ind. Eng...
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Januarg 1948

Plant lllununement Chemical plants are often judged by outsiders by the observation of apparently insignificant details. 6

bg Walter von Pechmann

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EOPLE who visit chemical manufacturing concerns frequently state that they can obtain an accurate picture of how a n organization is run by observing seemingly unimportant details. Some maintain that even the major phases of a company’s business can be judged in the following way: By combining and analyzing related findings, one can draw conclusions which can be applied directly to plant-wide conditions. There is no doubt that one can come to a conclusion regarding conditions prevailing in a factory by the same method that is usually employed in judging human beings-namely, by being on the lookout for certain indications which reveal specific characteristics. The writer, in a recent discussion with a chemist who is surprisingly successful in determining quickly and accurately what is going on in a plant, asked the chemist how he draws his conclusions. The information received is passed on to the reader in the belief that every production executive in the chemical industry is eager to learn all he can about how outsiders draw important conclusions from little instances observed. This is what the writer was told: It is important that a person be unbiased in his opinion when conclusions have to be drawn from observations of apparently insignificant happenings. H e should not expect a ghost in every closet and, above all, must not be the faultfinding type. He should be on the alert for signs indicating favorable trends, as well as unfavorrible ones. He should be conscious of the fact that the observations which he makes in the plant always bear the stamp of the individual who is in oharge of an operation. Conclusions, therefore, should never be drawn from single observations. The person who analyzes a n organization cannot: arrive a t a correct conclusion by making observations only. He must be capable of obtaining the information needed by taking advantage of certain situations which will allow him to form a definite opinion. For example, if an executive drops a hint that certain conditions in his plant are in need of being corrected, the visitor should not only take such a statement ad notam but should try tactfully to continue the conversation on the subject until he finds out whether this situation actually exists or there prevails merely a personal grievance caused by the failure of individuals to cooperate with each other. It is very important that the person who makes the analysis should not create the impression of being an investigator. This often makes it impossible to ask questions directly. For example, it would be unwise t o ask an executive to what extent he is allowed to form his own policy. The visitor should instead draw the conversation to the subject of production executives’ forming their own policies and then mention a specific instance where a policy should be formed b y top management and not by individual department heads. The manner in which the executive reacts when confronted with such a statement will tell whether he is inclined t o follow instructions handed down from top management.

Before a conclusion can be drawn as to what condition exists on a .plant-wide basis, the information received should always be “sifted.” This means that the visitor must take into consideration whether the individual from whom he receives the information is an outspoken personality, inclined t o take on more authority than due him, or is a person of the follower type. According to his findings the visitor will consider the executive’s word worth being considered representative of the entire plant or merely the expression of a n individual. One finding, although believed to be representative of the entire plant, should never be used to draw definite conclusions. Only by accumulating a number of findings believed to be existing in the entire plant, can an intelligent analysis be made. According t o the chemist who analyzes chemical manufacturing concerns, these plants fall into either the “me” or “we” category. One has only t o watch how often production executives refer to the work of other people in the organization as “theirs” or “ours” t o determine whether there is somebody on top who directs the company’s important activities or whether the organization is run by individuals without company-wide purpose and aim. “Our,” in a plant, means unity, cooperation, and willingness to work for a common goal according to directions received. “Their” implies lack of unity, insistence upon doing the work as one sees fit, and the disregarding of others. Putting theory into practice, let us take an imaginary visit to a chemical manufacturing concern. Upon entering the information office, the visitor will gain the first and often a very important impression of the organization. These are the questions which in,all likelihood he will ask himself. Does an atmosphere of progressiveness or an atmosphere of backwardness prevail? Does the information office seem to fit into the general pattern of other surroundings? Are employees courteous? I s the place clean? How does the receptionist conduct her business? An atmosphere of progressiveness does not necessarily mean streamlined and expensive furniture. It can prevail in an office with old furniture, providing that attempts have been made to strip i t of fancy and unnecessary paraphernalia. The writer once visited a chemical plant where the old office furniture in the reception room had been paneled with presswood board, giving a modern and pleasing effect. Inexpensive stained doors with wooden letters created the impression of modernism. The visitor should especially look out for office furnishings, which often reveal more than commonly believed. For example, a membership sign of the Chamber of Commerce dating back five years, or old bleached-out advertising signs 95 A

Plant Management and calendars can be taken as definite indications that management is not eager t o impress the public with the progressiveness of the firm. More often, it will be found that the company as a whole is not on the lookout for new ideas and/or open to new suggestions. Again, it should be pointed out that these are only indications and should not be used t o draw conclusions for the entire plant. Warned about a certain undesirable trend, the visitor, however should watch for other symptoms. It is not always realized that a company which equips its reception office with the most modern type of equipment may do more harm than good. It is very important that this part of the plant fit into the general pattern, as otherwise visitors may get a shock when stepping into other parts of the plant; they may then conclude that the concern is trying to bluff. It is surprising how few top executives realize the importance of hiring courteous and efficient receptionists. Contrary t o common belief, the receptionist is in the eyes of visitors not just clerical help t o whom minor functions have been assigned but a representative of the firm. People may not admit that they judge an organization by the way they have been received; the fact, however, remains that a number of executives who express a like or dislike for a certain concern base their opinion on the way they have been treated when entering the plant and frequently refer to the receptionist as “they,” meaning the organization t o which they paid a visit. The way a receptionist conducts business reveals to the experienced observer more than is generally realized. For example, one has only to listen t o how calls from the plant are received in order t o gain a pretty clear picture of employer-employee relationship, morale, discipline, and efficiency. The visitor who wants to learn about plant maintenance will not find it difficult to obtain the information he needs. A few squeaking stuffing boxes, oil leaks on motors, or oil splashes around the motor base often tell the story better than a maintenance schedule, which in all likelihood is not followed. Dust is also a telltale. One cannot expect a production room to be perfect a t all times. Just as the experienced housewife can tell whether a disorderly condition in another household was created only a few hours ago or is the accumulation of consistent negligence, the experienced investigator can tell at a glance if there exists in a plant only a temporary disorder or a continuous chaotic condition. He will, for example, pay special attention to overhead pipes, and dirt accumulation in corners or in areas that are hard to reach for cleaning. It is often difficult to determine quickly the extent of prevailing working standards. There are, however, certain indications which can be utilized to form an opinion. I n a department, for example, where questions are being asked by workers when written instructions obviously should have been supplied to them, it is safe to conclude that a need exists for the improvement of working standards. This also applies when workers argue among themselves as to who is supposed t o do the job or make arrangements that should have been made by supervision. Conscious of the fact that outsiders will form a n opinion of an organization based on the observation of minor details, production executives in the chemical industry will do well to put emphasis on the proper execution of minor details. They also will see t o it that their employees conduct business with visitors in such a manner that credit and not discredit falls upon the organization. 96 A

Januarg 1948. A surplus of engineering students and contrasting shortage of medical students is predicted by 1960. The President’s Commission on Higher Education finds that, on the basis of mental ability, the number of students in the United States who are eligible for advanced education in 1960 will reach 4,600,000, double the actual 1947 enrollment. (The Star, Washington, D. C., Nov. 21, 1947) Total consumption of natural and synthetic rubber, 735,022 long tons, for the first 8 months of 1947 showed an increase of 74,553 tons over the same period in 1946. Of the total consumed, 389,645 tons were synthetic and 345,377 tons were natural rubber. (Rubber Age, p. 201, Kov. 1947) A new, simplified table-model instrument for the generation and transforming of high frequency current into high frequency mechanical vibrations has been developed. To date ultrasonics has been used successfully as a research tool in sterilizing, the forming of emulsions, clearing liquids of dissolved gases, precipitating suspended particles, and breaking adhesive bonds in resins and polymers. (The Laboratory, Vol. 17, No. 3, p. 84) W

The use of aluminum for body parts is being considered seriously in the automobile industry. Aluminum offers manufacturers the advantages of weight reduction and improved distribution of stress. Extrusions and rolled sections of aluminum now can replace steel economically. Problems to be overcome include handling of scrap, different time cycles on welding, and differeqt finishing techniques. (Chzcago Journal of Commerce, Nov. 8, 1947) W

The January-March 1948 United States export allocation of fats and oils is 87 million pounds, somewhat lower than the allocation for the first quarter of 1947. Shipments during the quarter probably will exceed the allocation to include quantities carried over from the last quarter of 1947. The 452-million pound export allocation for the fourth quarter of 1947 amounted to more than one half the total allocation of fats and oils for fhe entire year from September 1946 to October 1947. (Summary of Fats and Oils Allocations, U. S. Dept. of Agr., Dec. 11, 1947) W

Blue-green algae have recently been found to share with leguminous plants and azotobacter the ability of fixing atmospheric nitrogen. This knowledge is of practical value in certain tropical soils, such as the rice fields of India, and in maintaining biological growth in fresh water. (Endeavour, p. 172, Oct. 1917) W

Production workers employed in the manufacture of chemicals and allied products totaled 563 thousand in September 1947 as compared with 530 thousand workers employed during the same period in 1946. Work hours in the industry averaged 41.1 per week in the recent period, and earnings $51.84 per week. (U. S. Dcpt. of Labor, Industry Release, Dec. 6, 1947) Wholesale prices of chemicals in primary markets showed an increase of 23c/‘, between September 1946 and September 1947, to register a somewhat higher rate of increase thBn raw materials generally. The latter showed an increase of 20%. (U. S. Dept. of Labor. Wholcsnle Prices for September 1947) 126 A