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Viable Vision: Transforming Total Sales into Net Profits by Gerald Kendall

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6

Operations

“Tell me how you measure me and I will tell you how I will behave. If my measurements are not clear, no one can predict how I will behave - not even me!”

The managers at the steel plant claimed that they lacked the production capacity to produce all of their orders on time; 40 percent of the orders were late. The VP showed me the start of the process, where the caster takes hot, molten steel and forms it into blocks that are then rolled to desired thickness. The metallurgical properties of the steel can be altered and the steel block rolled into different thicknesses and sizes to meet different client requirements. I walked through the plant and saw work in process everywhere. Outside, the huge storage yards were full to capacity ...

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