What are the most spread problem in production companies?

The Ahilles’ heel of every business, not only the production companies, is planning and lack of control. The planning incapability plays bad joke to Bulgarian companies – starting from what resources are necessary at the moment and going to potential growth of the firm. It is especially difficult with the staff. Without planning the companies either seek additional staff or release the current one. And when the next peak comes (usually unexpected), the company loses sales and market share because it cannot find more staff in so short period. Thus at the moment employers claim that there is shortage of people to work, while the real root of the problem is poor or zero planning of resources. Planning is the key for starting business, for adequate serving the current customers and for future growth.

The lack of control is a whip for many firms because it allows lots of, realy lots of money and resources to flow out of the company. The firms that suffer from lack of control are ideal donors for the companies where good control exists. Where the control is absent, the resources are wasted – in the form of raw materials, people, finished goods. At the end, the result is total chaos and not only the growth is terminated but sometimes the business is closed.

2. Which companies meet these problems?

There is no specific industry or activity. These problems appear both in Bulgarian and foreign companies, in production and trade companies. But the Bulgarian firms suffer more mainly due to lack of know-how for improving the processes. The common feature is poor control for a certain period of time.

3. It sounds rather embarrassing. What is the solution for such problems?

The good news is that there is a cure. It is required simultaneous work on several flanks and the work includes:

• Process structuring

• Implementation and following rules and procedures

• Change in managers’ thinking

• Change in field work

• Periodical trainings

I always say that there are no impossible cases. Everything is a matter of willingness and attitude to solve the issue. By idleness and divagation nothing can be solved – a focused work is needed.

4. If there is an exit, when the companies may expect results from the steps you recommended?

The first results come still in the first month. Initially the people are sceptic and hardly accept any suggestions but little by little they become enthusiastic when they see that there is sense in making efforts. The required correct approach includes everything – push when things are stuck and compliment when there is effort. The processes in supply chain are not so complicated and with the right levers we may quickly implement improvements in any operational department.

5. Do the changes usually happen so fast? And if so, what impedes the Bulgarian companies?

The changes usually happen fast. Because the owner or the general manager who has realized that he needs external help, is already mature for the change. But this does not mean that the personnel is mature. Actually the biggest stepback for any change is the personnel resistance and the will to keep the current status quo. And not because the status quo is good, just it is well-known. Even many operational employees suffer from the current situation, they severely block every change because they fear from failure. Just later they see the benefits from the changes. If the owner/general manager bends under to personnel pressure, the firm starts to lose.

6. What would the companies win if they change their thinking and working models?

The benefit is measured in few aspects:

• Money – pure economy from well-managed company

• Organized personnel who stays in the company and develops it

• Pleasant working environment without needless stress – this is a very strong parameter as supply chain is extremely dynamic

• Market stability

• Huge potential for growth