Role Playing:

You Are A Privileged Fly

Case
You are allowed to be on the wall of a corporate boardroom during a high-powered discussion.
The corporation is an engineering firm whose sales total approximately $280 million a year. Up
to now, things appear to have been going well. Production does an efficient job, and
inventories have been reduced. But danger signs are cropping up. Although no orders have
been lost as yet, several shipments have missed their deadlines. Customers are beginning to
complain. In addition, transportation costs on incoming and outbound freight shipments are
mushrooming. It is 9 A.M., and several people are nervously sitting at the conference table. A
stern-looking individual enters.
The Cast
Production manager: Heinrich Holtz, former blue-collar worker. Loves his machines and hates
to see them idle. But beneath his good of the corporation exterior lies the soul of a power
maniac who seeks control over traffic and purchasing.
Marketing manager: Harold Levi, a stereotype. Is afraid of losing sales because of late
deliveries. Generally, echoes presidential statements. Appears ready to support Heinrich Holtzs
power play.
President: Joe Gish, old-line type. Extremely successful. Has just attended a National Industrial
Conference Board (NICB) seminar and is throwing a lot of new buzz words and thoughts
around. From his subordinates point of view, he is dangerous.
Traffic manager: Harold Tracks, another old-liner, but much less successful. Not good at
verbalizing, except to quote percentage increases. His freight bills are going up, and he is being
made to look bad by comparison.
Purchasing and materials manager: Joan Glass, much younger than her associates. Does her
best. Understands President Gishs words and tries to put some of them into action. Extremely
inventory conscious.
Director of finance: Sol Stein dedicated to cost reduction. Action (This is what the privileged
fly observes and hears

Role Playing:

You Are A Privileged Fly

Action (This is what the privileged fly observes and hears)

President Gish brings the meeting to order. Look at these air freight bills! Heres one for
$955more than the damn part is worth! I know, I checked! These things are murdering us.
You must realize that in our business today, transportation has great cost cutting potential!
Traffic manager Tracks responds, I know that freight bills have risen 30 percent in the last
six months, but what can I do? Miss Glass here is cutting inventories so hard that she never has
anything in stock. Her short lead times force me to use air freight. And the way she spreads
small orders, I almost never find a way to consolidate them to get volume rates. And Im having
the same problems on outgoing shipments. Im caught in a two-bladed buzz saw!
Purchasing and materials manager Joan Glass interrupts to say, Harold, were operating on
low inventories because we save money doing it. Many times air freight is the only way I can be
sure of getting what I need on time.
Production manager Holtz comments, And when I need something, I need it. Take spares.
This downtime is an awfully expensive proposition, and we all know it. Further, by the time
Miss Glass here gets me needed production materials, we are so late that the only way to meet
delivery dates is with overtime and the use of air freight.
Marketing manager Levi joins in, Whatever the trouble, it seems there must be a way to
get an efficient pipeline. If Heinrich is late, then Im late. Were losing our image as a reliable
supplier. Soon, well be losing sales!
Traffic manager Tracks defends himself by saying, I dont want to seem bitter, but it looks
like Im getting the short end of the stick.
President Gish interrupts to say, No more excuses. I want action! Costs must come down.
Purchasing and materials manager Glass defends herself by saying, The lead-time problem
goes right back through production and eventually to Harolds sales forecasts. I need earlier
information.
Marketing manager Levi says, I have to promise prompt delivery. We all know that the
problem is at the other end.
Production manager Holtz suggests, Like Ive been saying for a long time, we should
combine supply, materials and traffic and get them closer to production.
At this point, purchasing and materials manager Glass sounds frustrated when she says,
Heinrich, were right back where we started. We need lower freight costs, but at the same
time we must keep inventory down.
Director of finance Stein says, Inventory carrying cost is over 25 percent a year. I think that
Joan has done a great job. But I do agree with Mr. Gish that transportation costs are way over
budget.
President Gish concludes the meeting by saying, Heinrichs idea is a possibility. We could
create a materials management setup. I understand its the coming thing. Ill give each of you
one week to put all your ideas on paper. Be prepared to deliver your reports at our next
meeting. I want us out of this fix ... and soon