Doc. Exp.No.1
Name of the
Company:-Kelvinator of India Ltd.(Now :-Whirlpool Limited)
Cracking down on theft of
Copper by Scrap dealer-Year 1981
Problem faced:-The
generation of copper scrap by plant operations and sale of Copper scrap from
scrap yard showed significant mismatch in quantity produced and sold.
Initial report:-checked the entire manufacturing process and weighment system and recording of copper scrap and found Ok.
Checked the entire system of
transportation of Copper scrap from Plant to scrap yard and weighment system of
scrap yard and found to be OK.
Checking of factory gate
operations and the system of sale of scrap which was as under:-
Most of the time the scrap
purchaser used to bring wooden bullock cart to lift scrap from plant.When it
entered the weight of Bullock cart along with bull was taken as weighment slip
issued from weighing scale.
Loading of scrap on Bullock
cart took around 2 to 3 hours and after filling the copper scrap the final
gross weight was taken at the time of exit from the gate and weighment slip was
issued.
For the purpose of billing
the net copper scrap weight was taken by deducting the first weight of bullock
cart from gross weight.
Result:-The entire system of
weighment was found to be correct without any problem and with no doubt on the
honesty of the employees and hired security guards.
How the problem was cracked:-During my childhood my grandmother had trained me to find loopholes in weighing system by domestic scrap dealers.Then It struck me that if wood gets drenched with water it gains enough weight and that was the point which I kept in my mind to crack the problem during the next visit of copper scrap dealer.
Smart scrap dealer despite
being an uneducated person and where educated personnel of the company failed
to use their common sense.
Next time I asked security
to call me well in advance when the Copper scrap gets sold.And finally the day
arrived.The scrap dealer entered the gate with thoroughly washed wooden bullock
cart and the bull having being fed lot of water to survive for 2 to 3 hours in
the scrap yard and as usual weighment slip was issued.I asked Scrap dealer as
to why he washed his wooden carrier so much and the reply was to enter the
factory with clean cart.Really a smart reply.
I did not allow the scrap
dealer to fill the cart with scrap after he waited for two hours but rather
asked him to get it weighed again at the gate and he was shocked but he had to
follow my instructions.To my surprise the weight was less by almost 50 Kg and
the reason being evaporation of water from the wood and bull urinating in those
two hours and finally after the scrap was weighed and that day it was 50Kg approx
more.I hope you all understand the simple logic now and the trick played the so
called uneducated village man who happened to outsmart all educated personnel
of the factory.
Conclusion :-The theft of
Copper scrap per visit cracked and the entire amount of loss with retrospective
effect from this particular scrap dealer recovered from security deposit.So
finally the problem was cracked and solved.
Management Solution:-System
of gross weight and Tare weight done away with and only scrap was weighed and
loaded in carrier brought in by scrap dealer.
Total revenue recovered –Around
Rs.5 lakhs (the year was 1981)
Lesson:-Common Business sense is
above the bookish knowledge.
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