The Crash: Chapter Ten
Last week in The Crash the receptionist, Donna, had some bad news. This week the new Engineering Manager, Brad, gets his first major challenge: winning over Harry Jepson, a longstanding customer who's set to go elsewhere due to problems with the car parts Jason's company has been supplying him. But winning over the customer is only half the battle...
"Nice
lunch. Thanks. Good to meet you." Harry smiled and held out his hand to
Brad.
His
handshake was firm and he smiled as if the common phrase was more than just a
pleasantry. It was easy to see why he'd
been such a success in business over the years.
Brad
shook hands with Damian too and promised to be in touch about the proposed
changes to the pressing process.
Jason
hadn't exactly agreed that the changes would be made, but Brad was confident
that once Jason saw how the benefits of adjusting the process played out, he'd
be happy to authorise what Brad was suggesting.
After all, like all business owners, he was in it for the bottom line.
Once
Harry and Damian had driven off, Jason turned to Brad.
"Come
into the meeting room," he said.
Brad
followed him back inside, and noticed that Gaby was on the reception desk. Presumably Donna was taking her lunch.
Once
in the meeting room, Brad sat down opposite Jason.
"How
did you think the meeting went?" Jason asked.
"Well. They're not cancelling the order yet, and
won't if we can get the changes made at the right price, which I'm confident we
can."
"And
you told the customer this before we'd confirmed it for ourselves?"
Brad
didn't know why Jason had phrased it as a question, since he'd heard Brad say
the words himself.
"Of
course. If I hadn't, they'd have gone
elsewhere immediately and we'd have had to waste time and money winning them
back."
"And
you didn't give any thought to what would happen if we couldn't make the
changes? We'll look like right
fools."
Brad
thought, but didn't say, 'you looked like a right fool anyway.' That was unkind and largely untrue. He only wanted to say it because he was so
cross with Jason for not appreciating his effort to win back a customer who was
being lost through no fault of his own, since the problem had arisen long
before Brad set eyes on Triple J Auto Parts.
He was beginning to regret letting Gaby talk him into taking the
job. Sure, he liked a challenge, but
there was a difference between taking on a challenge and aiming for a miracle,
and it would take a miracle to turn Triple J Auto Parts into a halfway decent
company as long as Jason was at the helm.
As long as the economy had been booming, JJ had been able to succeed on
its coat-tails, but when it came to making your way against the tide, you
needed good products, sound business sense, and great management skills, and
right now Jason seemed to be coming up short on all fronts.
What
Brad actually said was, "We didn't commit to making the changes, only said
we'd look into it. If we look into it
and find we can't do it, what have we lost?"
He
was impressed at how reasonable he'd managed to sound in the face of Jason's
wholly irrational anger.
"We've
lost our top customer."
"We'd
have lost him anyway."
"Maybe
not," Jason said, without any great conviction. "We go back a long way."
"And
you can go forward a long way once we make these changes."
"If
we make these changes."
The
conversation was rapidly taking on the aspect of an endless circle. Brad wondered how long the two of them could
go on arguing backwards and forwards, getting progressively more heated, if one
of them didn't do something to change the tone of the dialogue.
"Let's
look at how they'd work," Brad suggested, pulling one of the scratch pads
on the boardroom table towards him, and grabbing a pen from the pot in the
middle of the table. All the pens were
decorated with the company's distinctive red 'Triple J' logo.
"Look,"
Brad went on, before Jason could argue with him, "we make these three
components for Jepsons." He
sketched rapidly and three diagrams appeared.
"If
we made these parts from the same steel we do currently..." He marked two
sections of one part and one section of the second part with arrows from the
left and added the label, 'basic'.
"...And these parts from premium steel..." He marked the
remaining parts with arrows from the right and the label, 'premium'. "...Then we'd be placing half the size
orders for basic and premium steel, so they'd both still be at bulk rates, and
it'd only add a small amount to the per-unit cost."
"A
small amount that we can't afford," said Jason, who seemed determined not
to be won over at any cost.
"I
haven't finished yet," Brad pointed out.
"I'm
all ears."
Brad
ignored Jason’s sarcasm and continued drawing, this time boxing off two
sections of the more complex parts that were made from premium steel.
"If
we changed the process for these parts..." Brad indicated the sections
he'd just boxed off, "... so we pressed both parts from the same sheet
instead of separately, we could get more from the same number of sheets, and
that would absorb part of the additional cost.
Then, because we're using premium steel, we can raise the forging
temperature by a few degrees, which would also reduce the number of failures,
so overall we'd get more per batch. The
savings from that would wipe out the rest of the additional costs."
"But
it would cost more in fuel."
"Negligible. The cost per unit would fall well within the
price bracket that Jenner's have already indicated they'd be happy to
pay."
Brad
was pleased that he'd managed to produce a clinching argument. There was no way Jason could object to
something that allowed Triple J Auto Parts to produce the products Jepsons
wanted, at the price Jepsons wanted, with just a few tweaks to their existing
machine settings and a single change to their purchasing policy. With that one innovation, Brad had already
paid his first three months' salary.
For
a few seconds, visions of enhanced Christmas bonuses, promotions and pay swam
before him. Then reality reasserted
itself. Jason did not look happy. He was looking at Brad's drawings as if
expecting them to jump up and bite him, or perhaps to make off with a month's
profits.
"How
long will it take to get this set up?"
"Maybe
a week or two." They were into
practical process decisions now, which was usually a good sign. When a customer started talking 'when'
instead of 'whether', you mentally prepared the order sheet for signing.
Jason
hadn't given up with the objections yet, though.
"What
are we meant to do in the meantime?" he demanded, still looking daggers at
the drawings.
"Keep
on as we are, I suppose. It's better
than nothing. We could always give Jepsons
a temporary discount to reflect the higher failure rate. It's still a lot cheaper than actually losing
the order."
"Heaven
help any business you ever run. What
would happen if we gave everybody discounts that put our takings below cost
price?"
"We're
not giving it to everyone. And it's only
for a few weeks, to avoid the far bigger cost of lost business, and potential
lawsuits." Brad found himself
frowning and chewing the end of his pen.
This conversation wasn't going as planned. Jason was supposed to be pleased that Brad
was solving his problems for him.
Instead, he seemed to be furious, and determined to make implementing Brad's
solution as difficult as possible.
"We
shouldn't be having to spend money, just to keep out of trouble that we
shouldn't have been in to start with."
"I
agree," Brad snapped, losing patience and almost biting through his biro
in his attempt to keep his temper under control. "But you will observe that I wasn't here
when the decisions were made that created this situation. You were." Brad knew he was sailing dangerously close to
the wind, but hey, there were limits, and Jason seemed to be set on
overstepping them. Brad had found this
job, and he could find another one.
"I
wasn't Engineering Manager." Jason
was on the defensive now. Not to mention
verging on purple with rage.
"No,
you were Managing Director. Which gives
you overall responsibility for any decisions taken under your authority. And I find it hard to believe that you just
left the old Engineering Manager alone to do his job, given how difficult
you're making it for me to do mine."
The
two men stared at each other, and the energy between them seemed to have turned
into an almost tangible thing.
Finally
Jason took a deep breath and indicated the drawings on the table.
"What
do you need to make this happen?"
In
turn, Brad let out a breath he hadn't known he was holding.
"Authority
to change half the steel supply to premium grade, and about two hours downtime to
retune the machines."
"OK,
do it." Brad was impressed to see
Jason demonstrating the decisiveness that had made him so successful in spite
of his prickly nature. "We'll trial
it for a fortnight."
And
Brad would have to be content with that, because it was clear that Jason would
neither apologise nor admit he'd made a mistake in blocking the changes. Now that he'd agreed to them, Brad was
supposed to pretend that he thought Jason had been with him all along.
"No
problem," Brad smiled, but inwardly he was seething, and it was a relief
to get out of the cold, tense boardroom and walk through the factory floor to
the production office, where he'd start getting the changes under way without
the interference of his arrogant, controlling boss.
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