You were hired by Phillips Water Solutions becomes of your extensive experience resolving supply chain bottlenecks. Since 1974, Phillips has been an industry leader in the manufacturing of sprinkler systems for commercial properties. As an example, they are the seller of choice in Birmingham, Alabama, capturing nearly 55% of the market.
When you were hired, the CEO informed you that all is not as rosy as it might seem. The normal delivery of customized sprinkler systems should take roughly 30 days, but Phillips is averaging close to 50 days. Because the product is of high quality, and Phillips has a strong reputation, the customers are putting up with the delays. However, the CEO knows this is a flawed policy, and wants for you to fix the problem. In fact, he would like 20 days trimmed from the current delivery time within your first 3 months on the job. You were, after all, hired because of your ability to make changes fast.
When you meet with the top manager in the manufacturing division, he makes the following comment: “Look – we do the best we can here. I understand the product goes out late, but it takes that long to build a quality commercial-based sprinkler system. There is so much technology that goes into this product. It’s not just pieces of pipe glued together with water running through it!”
You decide to call a customer who is waiting for an order that is now 14 days late, and he states the following: “I’m not happy about the delay. Phillips is known for this late stuff … but you guys have quality stuff. I will tell you, though, we looked long and hard at some of your competitors, and they’re not far behind. Just look out!”
Please provide your responses for the following questions:
1. Based on what you know from this case, what are the two or three biggest problems?
2. How can you use project management concepts to make sure the product is delivered on time?
3. If you were to schedule a follow-up meeting with the manager of the manufacturing division, what concerns would you raise regarding his justification for the delay of the sprinkler systems?
4. Your CEO calls an urgent meeting with you, and asks for confirmation that you will meet the requirement of 30 days for delivery. What is your response?
5. After 6 months on the job, you have cut 11 days from the total delivery time (now 39). The product is getting out the door faster, but it has resulted in quality defects. In fact, a $175,000 order had to be redone. What relationship can you make about risk vs. reward and the concept of speed to market?