Profit Centers

[sweir@excite.com]

James Robert Crow wrote:

"...MBO's or Profit Centers destroy systems because
the emphasis is on the success of the components not the total organization.

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Rich DeROECK wrote:
"..., About 10 years ago a new set of "miracle workers" arrived on the scene
and implemented Business Cost Centers based on product and markets. What a
disaster! No one cared about anything but their own turf. Talk about
suboptomization!,..." 


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My scenario:

Company = large manufacturing facility
Structure = product centered business team environment
Common Goal = on-time delivery (customer doesn't recognize the individual
business teams, just the site as a whole, and wants all parts shipped to
schedule) 
Problem = all teams not consistently meeting delivery schedule
Company Norm = Crisis management.  Big time fire fighting and quick fixes.
Obvious Tragedy of the Commons archetype taking place.

My current focus is on the competition for shared resources.  Each business
team shares certain equipment which is "owned" by another team.  They do not
use a FIFO system at the shared resources.  The "hot" parts are pushed
through so that any parts which are on schedule will be set behind schedule,
theoretically not being worked until they too are behind schedule. 

I realize many of you have seen this exact example used before and I
understand it was a typical problem experienced by manufacturing facilities.
I am new to this facility and I am shocked that nothing has been done to
change this system or the culture which accepts this style of production
flow as a norm.  I am seeking advice on reading materials, which give actual
case studies of such situations, and/or suggestions on possible solutions
and how to implement a long-term solution.

Thank You,
S. Weir
sweir@excite.com
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