Friday, May 18, 2007

Fried Chicken # 2: Purchase Orders for Milk


True story, a large multinational based in the USA.

I was working in their Australian operations which were quite large. Every time the staff fridge ran out of milk, the staff had to ask their manager above to complete a paper 'Requisition' form to request more milk. this also had to be counter-signed by a manager at the yet higher level.

Managers had asked the US to change the policy, but the policy was company-wide and could not be varied. If managers ignored the policy the cost of milk (and this was for a whole floor of 100+ people) purchased they ran the risk the milk would not be re-imbursed.

From memory it was 'frowned upon' to have blank signed forms, and there were a whole variety of hurdles. The upshot was staff would have to smell the milk, as large orders for milk were often put in to avoid the ordeal of requisitioning. Contractors like myself were at risk of getting bad milk unless the local staff told them (as they did with me).

All because of a US policy, that contributed no value, yet caused maximum disruption, posed a possibel health risk, and distracted staff from their duties.

The punchline: All this rigamarole was being undertaken whilst they were in the middle of dual Quality and business process Re-engineering drives (the latter I was involved in).

Managers should not be wasting their time on requisitions for small ticket items.

VERDICT: Multi-national Fried Chicken!

The Innovation Solution: Decentralise control over purchases under a set dollar amount per week to one-two persons in the office with a spreadsheet and receipts that are submited to account OR just give authority to a couple of managers up to $XXX per week in return for receipts. OR bring back the tea-lady. Easyyy.

IDEA: You know first job I had they had a tea lady. If you have a lot of high-paid staffthis will save you a lot of hassles, and a modern version could get lunches, drop off dry-cleaning, and on top of that queue-up for and get all the double-decaf, cinnamon, cappuccino orders...!

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