Appointing a Dealer


  1. The Branch Manager perceives a need for an additional dealer in an area. Need occurs if any existing dealer leaves or is removed. It could also happen when the company expands into new territory.
  2. The Branch Manager has to convince the general manager of the division about the need for anew dealer.
  3. The selection process for the dealer begins with placing advertisements in newspapers and trade magazines inviting applications. Applications for dealership are directed to the concerned branch manager.
  4. The branch manager then reviews the application forms and prepares a shortlist if necessary. The company has not laid down any concrete guidelines for shortlisting at this stage. The branch manager is allowed to exercise his discretion.
  5. The shortlisted applicants are interviewed by the branch manager along with the regional sales manager of the division. Whatever additional information is required is obtained from the applicants during the interview. The dealers are evaluated on:
    1. Prior business record
    2. The capability of maintaining and running his own showroom
    3. Financial strength
    4. Inventory: The dealer must have enough working capital for maintaining specified level of inventory. This condition is however is applied only in the case of dealers whose territories are located considerably away from a branch office. This is because there is a company owned warehouse along with every branch office and for dealers located in the same cities there is no necessity to maintain separate inventory
    5. Contacts with customers
    6. Availability of salesforce to service customer effectively. In addition, technicians also need to be present to meet the after-sales service requirements of the products
  6. The final selection decision is made after talking with the bankers of the applicant. This is done to check the veracity of information regarding financial strength and prior business experience. It is only after the company is satisfied regarding all aspects of he information, that it sends the dealer an appointment letter
  7. The appointment letter lays down several terms of the contract that have to be fulfilled by the dealer. The company expects the dealers not to sell any competitors’ products. The dealer is also expected to conduct his business only within the clearly demarcated sales territory allocated to him by the company.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Good Maintenance


Good maintenance is fundamental to productive manufacturing system; try running a production line with faulty equipment. Total productive maintenance is keeping the current plant and equipment at its highest productive level through cooperation of all areas of the organization. Generally, the first task is to break down the traditional barriers between maintenance and production personnel so they are working together. Individuals working together without regard to organizational structure, using their skills and ingenuity, have common objective—peak performance or total productivity.

This approach does not mean that such basic techniques as predictive and preventive maintenance are not used; they are essential to building a foundation for successful total productive maintenance environment. Productive maintenance is the process of using data and statistical tools to determine when a piece of equipment will fail, and preventive maintenance is the process of periodically performing activities such as lubrication on the equipment to keep it running.

The total maintenance function should be directed towards the elimination of unplanned equipment and plant maintenance. The objective is to create a system in which all maintenance activities can be planned and not interfere with the production process. Surprise equipment breakdowns should not occur. Before the advent of computer-aided manufacturing, operators in some organizations were responsible for their machines and took a certain pride of ownership. With the help of maintenance technicians, operators spent part of their work time keeping their equipment in good running order. Recent technical advances have given us more tools to perform the maintenance function.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Fuse Knowledge to Power


Architects are concerned with flows. When designing a building, their paramount considerations are how occupants will move in it and how light and air will circulate around it. Equally important for organizational architects is how information, know-how, decisions, and careers will flow in the structure being shaped.

When the work of the corporation was primarily the organizing of manual labor, markets were local and slow to change, and the knowledge base upon which competitive success depended was stable, a unitary hierarchy of manager atop manager made a lot of sense. The information needed to run the business was limited and could be easily channeled in one upward or downward flow. Workers did the work, and managers did the thinking.

But this is a reality that has disappeared from most industries. Markets are dimensioned globally, rules change faster than some competitors can master them, and brainpower counts for much more than brawn. Most organizations, though, remain keyed to the old realities. Few hierarchies have even kept up with the need to build in change by linking each of their limited number of levels with the time horizons of greatest importance to the company.

A more serious problem, though, is the lack of rethinking about how a business needs to organize its intellectual capital, its knowledge workers. It is ironic, and wasteful, that while “knowledge workers” (technical professionals and other holders of graduate or postgraduate degrees) are making up an increasing proportion of the work force in many industries, the organization structures in which they work remain more the products of Industrial Revolution than of the information age.

Knowledge, especially which can affect the company’s future competitiveness, used to be confined to the research and development lab or to the strategic planning department. Now, as information systems-driven service industries assume a larger share of many economies, knowledge about the capabilities that provide competitive advantage is much more widely dispersed than was ever necessary in traditional manufacturing companies. No single information channel can contain it all. And even traditional product makers are changing. Fewer manufacturing jobs are directly involved in making something; more are concerned with planning what to make, how to make it, and how to keep customers happy after the product has been purchased. The intellectual demands on front-line workers have increased tremendously. The narrowly skilled assembly jobs have been replaced by the more knowledge-intensive positions of the factory automation technician.

Requirements for more intellectual value added have escalated up many organization hierarchies. Networked data bases, expert systems, and almost never-ending flow of new personal computer software have significantly expanded the scope and the nature of the contribution possible from many mid-level employees. This is not an unmitigated blessing, though. It has also seriously polluted the management role in many companies, making many into high-level doers instead of managers, increasing the role’s fragmentation, and making it brittle rather than strong and load-bearing.

This situation will only worsen as economic pressures lead to increased management delayering. Companies with eight to ten tiers of management will find it necessary to organize around four or five. The number of subordinates per manager will have to sharply increase. Middle managers will find themselves with less and less time to master these new white-collar productivity enhancers and to make the intellectual contribution their businesses increasingly need.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight