Sunday, November 9, 2008

reducing cycle time, cutting cost - basically saving time and money by killing vendors

The follwoing is a case study based on a company 'XXX' which has a work 'A' given to a Vendor 'V'

In the past few years the buzzzz word in any industry is 'cost cutting' how do they do it, it gave birth to an other word 'saving time'.
Most of the so called new generation Indain companies which provides services to companies in US or Europe and get paid in dollars and pounds found a new way to cut cost and save time ---- by sucking out blood and killing their vendor.

Mostly the following is what happenes with any so called new generation companies.

They have a work let's say A, is the work which cannot be done by a new generation company XXX.
Lets say the work A takes 10 days to finish if its done by the most effecient company in the world.
The company XXX where these so called energitic Managers start eating, talking,sleeping and fooling around the CEOs and CFOs and MDs and when there is only 12 days left they start searching for a company ( the norm is that they have to find atleast 3 vendors and get quote and give work to the lowest priced but most effecient vendor) they will end up finding a vendor V whos is as usual desperate to get work.The Manager gives a big talk using words like 'long term relationship,professional approach, quality and what not' The vendor gets convinced and takes the work for Rs.100 ( but in the market the same work is done for Rs.250)out of desperation.
The manager tells the vendor to make two more dummy quotations and give him so that the managers ass is saved.The vendor does it.
The whole process takes 5 days time and the vendor starts the work on the 6th day with a advance of 25 percent which is Rs.25.Now he has only 4 days to complete the work.
He has to complete the work in 2 days because the CEO of the company XXX has to see and approve it so that he can deliver the final product.
He completes the work in a hurry and spends Rs.200 for a Rs.100 work thinking that he will get more work from the same company once this is over.
The MANAGER first makes some changes ,then the Finance head makes some changes,then the tea boy ,then the guy who goes in the road, some beggers and in the end it goes to CEO,he tells that he din like the whole work.By now the 10th day is reached.
The manager tells V- the vendor that he has done a bad work, because the CEO din like it so he tells him that he can not pay him untill other changes are made.But Manager takes the what ever is done till now and delivers to US or Europe and gets paid $250.
The vendor runs up and down between his place and the company XXX for another 6 months with the same work.
After six months he gets tired and pissed off and starts shouting at the XXX manager(The XXX manager has been waiting for this moment), The manager says that V is not professional and has not finished the work in time and on top he is behaving like a Gunda and throws him out of the Vendor list and does not pay a single rupeee.

If the V-vendor is still patience and asks for money finishing all the changes , The Manager say 'there is a small miss communication boss, the project you were working on has been dropped by our client, so i can not pay you now ,you come back after a month'
The manager will never use the word 'i will not pay you' instead he uses the word 'i will pay later' so that he can keep on postponing till V gets tired and dies.

This is not Mis-Fucking-Communication
This is Mis-mother-Fucking-Management

These managers don undersatnd the meaning of reducing the cycle time.
If you have to reduce the cycle time of a process ,you have to plan as early as possible and keep it and when time comes implement it.But our Managers while away time then come on the last day and start palning and waste time and eat even the cycle time (they call that reducing cycle time) and give a little time for the process and fuck it up.

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