Elden is the plant supervisor in charge of sand and gravel production for a large construction
company.
Van is the construction crew supervisor and one of Elden's internal customers.
Wayne, an equipment operator, reports to Elden.
Watch Elden as he meets with Van about materials needed for an upcoming project.
Elden, you in there?
Van!
What brings you down the hill?
Where's Elden?
Down at the asphalt plant.
Well, he's supposed to be here about the special order sand for the new football field.
You're making sure Jim's okay.
We're shutting down the asphalt plant for the season.
This is typical.
You know he'd be here if I was an outside customer.
He knows you guys own the quarry.
Elden knows what side his bread's buttered on.
Oh, here he comes now.
Hello, Van.
Hey, Wayne, do me a favor.
Will you go down and give Jim a hint?
He's been ready to shut down the furnace.
Yeah, sure thing.
You ready to talk about the special order?
Hey, you guys are customer number one.
Come on.
Let's take a load off.
Been waiting long?
Oh, a few minutes.
And coffee?
No time.
I gotta get back upstairs.
Yeah.
Well, let's just try to avoid what happened last week.
Yeah, those eight loads of bad gravel you gave me had my crew leaning on their shovels
for two days.
And if you'd have talked to me yourself, you wouldn't have made me look like such a bozo.
Let's just get it straight, all right?
I need 2,000 tons special order sand for the new football field over at the college.
You working with them college engineers again?
Yeah.
And what about it?
Figures.
What they know about sand, they learned at the beach.
I guarantee they don't need no special order stuff.
Just pay attention, Elden.
Maybe you'll learn something.
What do they want it for?
It's a permeable base for the new football field at the college.
It's supposed to drain better that way.
Football?
Did you say football?
Yeah.
Those guys haven't been on a football field in their whole lives.
Don't they know that mud's part of the game?
You want the specs or not?
Yeah.
I'm due for a good life.
All right.
What I need is 2,000 tons of special order sand.
It's got to be SC number eight.
What's wrong with a standard grade?
I don't know, Elden.
Just listen and write it down.
Anything you say.
All right.
Durability should be at least 15, and it's got to be clean, between zero and 2% dust.
2%?
No way they need it that clean.
What do you know about it?
I know it'll drain fine at 10%.
Don't tell me about it, Elden.
Just do it.
When do you want it?
Next Tuesday, latest.
Week from tomorrow?
No way, Jose.
You act like you still run your own shop.
We bought this hole in the ground, remember?
Yeah.
And you guys are still only 20% of my business.
I got a shipment due out here Tuesday for a real customer.
You tell those guys upstairs if they want to keep on paying their bills, our own projects
go to the end of the line.
Coffee?
No time.
I gotta get back upstairs.
Well, I appreciate you taking the time to talk to me about this order.
I don't think I ever messed you up as bad as I did last week.
Yeah, Jose.
Loads of bad gravel you gave me.
I had my crew sitting on their shovels for two days.
So we gotta get straight on every project.
Now, I want to know exactly what you need for the new football field at the college.
What I need is 2,000 tons of special order sand.
Why not use a standard grade?
All the specs came from the college engineers.
Say it's gonna drain the turf better.
I guess those college boys don't want to get their uniforms all muddy, huh?
Yeah, right, Elden.
They don't want to wear leather helmets either.
I know what you mean.
Is this like the soccer field you laid last year?
Well, it's the same idea, but the specs are different.
Different specs?
Is the draining all right?
That soccer field drains just fine.
Oh, okay.
Well, let's see now.
What's the sizing?
Now, the whole order's gotta be SC number 8.
Okay, durability?
15.
How about dust content?
That's where I messed up last week.
It's a killer, Elden.
It's gotta be clean between 0 and 2%.
Why does it have to be so much cleaner than the sand for the soccer field?
I didn't ask.
Did they test to see if it has to be that clean?
Elden, those college engineers know what's what.
Hmm.
How's your time frame?
We load hall place by next Tuesday.
We're out Wednesday afternoon the latest.
Why the rush?
Want to beat the bad weather.
They want to lace out starting Thursday.
What if it rains before Tuesday?
Let's do it anyway, Elden.
We'll load out first clear day.
All right.
Let's see if I got it straight, huh?
You need 2,000 tons of SC number 8 sand, durability at least 15, and no more than 2% dust.
And I gotta produce rain or shine so you can load out Tuesday and Wednesday.
Right.
That looks like we're in sync this time.
Not quite, man.
There's a few things we gotta work out.
Those are the specs.
Elden wants to work out.
Well, the sizing and durability, there's no problem.
What is the problem?
Well, I can give you clean sand, 2%, but only about half by Wednesday.
Oh, that won't cut it, Elden.
The sand people can't get in until we roll the whole field.
Let's see if we can figure something out here.
Listen, you think those college engineers would go for 6% like the soccer field?
If they do, I can meet the deadline.
I don't know.
Are they happy with the soccer field?
Well, yeah.
I'll give them a call.
Maybe they'll back off if they know it's gonna wreck their schedule.
Now we're cooking, man.
Now the only other thing is who's gonna load out on Tuesday?
Don't tell me your loaders are tied up again.
I get a big shipment due Tuesday for that outfit over in Woodbridge.
What happened to customer number one?
All I'm saying, man, if your people can move out your own sand, then I can make everybody
happy.
Oh, that's a point.
I'll try and run down another loader.
Good.
Now, you're gonna call those college guys, right?
Sure, Eldon.
I'll let you know.
Hey, but wait.
How are you gonna do it?
I mean, I can't start producing until I know what they say.
Oh, you drive a hard bargain.
I'll tell you what.
I'll collar the top guy this afternoon.
I'll let you know by tomorrow.
That's all I need.
Ha ha.
So we gotta get straight on every project.
Now I want to know exactly what you need for the new football field at the college.
Is this like the soccer field you laid last year?
What's the sizing?
How about dust content?
That's where I messed up last week.
All right, let's see if I got it straight, huh?
You need 2,000 tons of SE number 8 sand and no more than 2% dust.
And I gotta produce rain or shine so you can load out Tuesday and Wednesday.
Well the sizing and durability is no problem.
Let's see if we can figure something out here.
Listen, do you think those college engineers would go for 6% like the soccer field?
If they do, I can meet the deadline.
Good, now you're gonna call those college guys, right?
Sure, Eldon.
I'll let you know.
Hey, but wait.
How are you gonna do it?
I mean, I can't start producing until I know what they say.
Oh, you drive a hard bargain.
I tell you what, I'll call her the top guy this afternoon and I'll let you know by tomorrow.
That's all I need.
Vera is a purchasing assistant in a large manufacturing company.
Lillian is a secretary in the engineering department and is one of purchasing's internal
customers.
This is an engineer who works with Lillian.
Watch Vera as she meets with Lillian to discuss how purchasing and engineering can better
work together.
Lillian, can you order one of these new meters for me?
Any ideas where I might try?
All I know is what it says in that article.
Well, maybe purchasing will know.
You mean the black hole where none emerge?
I doubt it, besides, their catalog stopped just after World War II.
Now, now.
Vera's coming over here in a minute and she's in purchasing.
Why don't you ask her about this?
I can't.
Purchasing interfaces only through purchase requisition forms, completely and correctly
filled out.
Besides, I gotta go.
Wait a minute.
When do you need this thing by?
Like always.
Yesterday.
Oh, ASAP.
Oh, now where to put those purchase requisitions?
Here you are.
Oh, Vera, hi.
Hi.
Is this a good time to talk?
Good as any.
Sit down.
Oh, as a matter of fact, no, never mind.
What's up?
Guess what?
Purchasing is about to take on a new lease on life.
It is?
What's up, Vera?
You know those quality meetings the company's been having?
Yeah.
Well, as a result of going to them, we decided it made sense to talk to our customers and
find out if we're giving them what they need.
Purchasing is talking to customers?
Internal customers.
People in the company who use our services, like you.
We want to find out how we're doing and where we might do better.
That's a switch.
Usually, the only time we hear from you guys is when we've messed up.
I know.
That's something we want to change.
So is purchasing giving you the services you need?
Vera, I'm a very busy person.
Now I'm perfectly willing to take my time to tell you what I think on one condition.
What's that?
Well, that you can look me straight in the eye and tell me that what I have to say isn't
going to just blow off the porch somewhere.
It won't.
I promise.
Quality is a very big deal around here these days.
Now, Vera, you and I both know that the company goes through these phases.
Everybody gets excited for a while, but nothing changes.
Is this going to be one of those?
Lillian.
I don't want to see the system improved as much as anyone else.
I hate feeling like a watchdog.
I hate always being the one to say no.
I think this approach will help things change.
I really do.
OK, OK.
Now what happens?
Let's forget about the way things are now with purchasing and zero in on how you'd like
them to be.
Well, for starters, is there some way that purchasing could be a little more flexible?
Well, now, I know you need procedures, but couldn't there be just a little more leeway?
For example, I'm just going to take some notes here, and then we'll go over what you said.
OK.
Well, the people in my department order things when they need them.
They don't want to wait, and they do not want to follow complicated guidelines.
You certainly got a bunch of free spirits on your hands.
That's one way to put it.
OK.
How could we make things easier for them?
Well, for starters, when they need something fast, it'd be nice if they could pick up and
place the order by phone, and then send in the paperwork later.
Simplify the turnaround, OK?
Any other ways we could be more flexible?
Well, since you asked, you didn't have anything to do with this purchase requisition form,
did you?
You don't like it.
I don't get it.
Why does it have to be so complicated?
Everything on it seems related to anything in this department.
I guess whoever designed it should have talked to you first.
Good idea.
Oh, and here's another thing.
Wes wants me to order this meter for him, and now I'd like to call purchasing and ask
for help on where to get it, but I dread even picking up the phone.
Is it that bad?
Well, either you give me five reasons why you can't do it, or you take the order and
that's the last I ever hear of it.
I'm sorry.
I don't mean you personally.
I know.
You're looking at the system here.
Any other main points I should know about?
I'll probably think of three more as soon as you leave.
We'll probably send out a questionnaire based on these initial interviews, so you'll have
another chance.
Right now what you want is a more understandable purchase requisition form and more flexibility
in the ordering procedures.
And tell me where to get Wes's meter.
Right.
It'd be nice to feel like we're all in this together instead of being on opposite sides
of the fence.
Yeah, it sure would.
We have to find some way to get you what you need and still stay on top of costs.
It's a real balancing act.
Well, I'm glad it's you and not me.
We've got a ways to go, so let's see where we can start here.
I'm sure I could convince Ellen to let us take phone orders before you send in the paperwork.
You are?
Why not?
She's really behind this thing.
Of course, she may have to put some kind of ceiling on cost per order.
That's fair enough.
And we're already taking suggestions for changing the requisition form.
You're not the only one who doesn't like it, including me.
You?
Try reading one sometime.
Maybe a while before a new form comes out, though.
We still have about 17 million of the old ones.
I just thought of something else.
Is there some way we can stop bothering these guys with dumb questions about specs whenever
they place an order?
We don't know what's a dumb question and what isn't.
We can't place the right order unless we have the right specs.
I know.
I expect you to read their minds.
Well, we can't.
Couldn't you tell them to let us know what the critical specs are, like speed or brand
or cost or whatever?
I could.
But you know these guys.
They've got a lot of birds on their antenna.
I'm not even sure if what I say gets through or not.
Maybe you and I could have a little understanding here, just until we get everything permanently
straightened out.
Like what?
I'll call you instead of them if I need more information about an order.
You'd have a better idea of the priorities than I would.
And if you don't know, you can ask.
I sure would love to get these guys organized.
Maybe I can get them to place their orders through me.
Good.
Like the meter for Wes.
Yeah, right.
Why don't you give me the article and I'll check our catalogs as soon as I get back to
the office.
Give you the article?
To take to the black hole where none emerge?
Lillian, get a grip on yourself.
Do you want me to make a copy?
No.
I can trust you.
I'll call you as soon as I find out something.
I'll be right here.
And thank you for your help on this.
I think you're going to see a big difference.
You know those quality meetings the company's been having?
Yeah.
Well, as a result of going to them, we decided it made sense to talk to our customers and
find out if we're giving them what they need.
Purchasing is talking to customers?
Internal customers.
People in the company who use our services, like you.
We want to find out how we're doing and where we might do better.
So, is purchasing giving you the services you need?
Okay.
So, could we make things easier for them?
Simplify the turnaround, okay?
Any other ways we could be more flexible?
Right now, what you want is a more understandable purchase requisition form and more flexibility
in the ordering procedures.
We have to find some way to get you what you need and still stay on top of costs.
It's a real balancing act.
Well, I'm glad it's you and not me.
We've got a ways to go, so let's see where we can start here.
I'm sure I could convince Ellen to let us take phone orders before you send in the paperwork.
Maybe you and I could have a little understanding here, just until we get everything permanently
straightened out.
Like what?
I'll call you instead of them if I need more information about an order.
You'd have a better idea of the priorities than I would and if you don't know, you can
ask.
I sure would love to get these guys organized.
Maybe I can get them to place their orders through me.
Gordon is the marketing manager for a large multi-service insurance company.
Gail is an independent insurance agent and a customer of Gordon's.
Gordon is on the phone with Gail about a particular insurance policy when the opportunity to discuss
other business matters arises.
That's great, Gail.
That makes six new trucks your clients added this year.
I told you it was a monster account, so they're going to get their paperwork by tomorrow,
right?
It went out yesterday.
By the way, who handles their property insurance?
They must have warehouses all over the state.
Yeah, they do, and I've already got their property coverage nailed down through another
carrier.
Too bad.
Have you looked at our new property package lately?
Give me a break, Gordon.
I don't have time for a pitch right now.
This is not a pitch, Gail.
We've been asking all the VIP agents if we're meeting their needs on property coverage.
Yes, and trying to get their business for the big money accounts, property, and liability.
Hey, I respect that, but I've already got some solid carriers.
Look, I won't try to forfeit that new package.
I just want to talk to you about your customers' needs so we can give them what they want.
Okay, but I've got a client coming any minute.
Thanks, I'll make it fast.
Now what is the most critical thing you look for when you shop property insurance?
I look for whatever the client wants, usually the right price.
So you go with the lowest quote, pure and simple?
Well, not completely.
I mean, part of it is timing.
How fast do you guys get a quote out on a property coverage?
We're working on that.
We got it down to three weeks.
You're kidding.
Most of my prospects can't wait more than two.
Well, you know, timing is everything on the sale.
It's a given, Gordon.
It's a fact of nature.
So you only shop carriers that can get you a quote inside of two weeks?
I've got a carrier that does it in five days.
If you guys take three weeks, there's no point in talking.
Gail, I can't meet your needs if I don't know what they are.
OK, I wouldn't waste my time if you can't guarantee me a decent turnaround, period.
Gail?
Anybody home?
Gail?
What?
Gordon, I'm sorry.
What were you saying?
I said, what else is important when you're shopping property needs for a client?
Who is this?
The genie in the magic lamp?
Yeah, right.
Now rub your telephone and make another wish.
I really can't think of anything else, Gordon.
Well, how important is the policy itself in closing the sale?
Most clients don't read the fine print till the typhoon hits.
So that's it?
Yeah.
All right, let's see if I got it.
You want a property quote within five days of request.
Wait a minute.
I've got one carrier that can do it that fast.
What I said is that the outside limit is two weeks.
Right, two weeks.
You also shop rates and policy benefits in that order.
Don't put words in my mouth.
To some clients, benefits are critical.
Hold on a second, Gordon.
I've got to take this.
This is Gail.
Nikki.
Oh, no.
I've got someone on the other line and a client waiting for me.
Can I get back to you?
Yeah, all right.
OK.
You're in the car phone, aren't you?
OK.
Scout's on her.
Bye.
OK, Gordon, where were we?
You said Jermaine needs a quick turnaround on property quotes and competitive rates.
Yeah, so what?
Well, turnaround time is something I can work on.
Good.
Let me know when you're in the ballpark.
Now, I can't promise rock bottom rates on every quote, but what I can do is give your
feedback to my manager.
She's working with corporate on new rates for next quarter.
Yeah, but what difference does it make if it takes you three weeks to get me the quote?
Gail, we're committed to meeting your needs and your customers' needs.
I'll pull together some key people and see what we can do.
Look, Gordon, let me say this and then I've got to go.
If you can get me the quotes in two weeks, then we've got something to talk about.
OK?
I'm glad to hear it.
Now, are we set for lunch with Bernie next week?
Yes, yes, it's on my calendar.
If you have some time after lunch, can I get your feedback on our other services?
Yes, Gordon.
Boy, you don't give up, do you?
If I did, you'd be talking to some other carrier.
That's a fact of nature.
Right.
Bye, Gordon.
Goodbye.
By the way, who handles their property insurance?
They must have warehouses all over the state.
This is not a pitch, Gail.
We've been asking all the VIP agents if we're meeting their needs on property coverage.
Now what is the most critical thing you look for when you shop property insurance?
So you go with the lowest quote, pure and simple?
All right, let's see if I got it.
You want a property quote within five days of request.
Wait a minute.
I've got one carrier that can do it that fast.
What I said is that the outside limit is two weeks.
Right, two weeks.
You also shop rates and policy benefits in that order.
Well turnaround time is something I can work on.
Good.
Let me know when you're in the ballpark.
Now, I can't promise rock bottom rates on every quote, but what I can do is give your
feedback to my manager.
He's working with corporate on new rates for next quarter.
Gail, we're committed to meeting your needs and your customers' needs.
I'll pull together some key people and see what we can do.
Look, Gordon, let me say this and then I've got to go.
If you can get me the quotes in two weeks, then we've got something to talk about, okay?
I'm glad to hear it.
Now, we set for lunch with Bernie next week.