Success Stories

This board test equipment manufacturer had just emerged from bankruptcy when I was asked to help.  Each unit required over 360 reed switches -- close to 30% of the total material cost.  Moreover, nearly every piece of equipment failed the first time it was powered up because the reed switch defect rate was nearly one out of 500.  The reed switch supplier was threatening to increase the price by more than 10%.  This price increase was equivalent to 2 cents per share--a significant financial impact.  The reed switch manufactured by this supplier was the only switch qualified to work in the equipment.

What did we do?

We asked the purchasing team to meet with the supplier.  The supplier brought in a sales representative and two other people.  We observed a heated debate, which ended in the purchasing team threatening to find another supplier if they didn't fix the quality problems and retract the price increase.

After the meeting, we discussed what had just occurred with key members of the purchasing organization and asked if they had ever met with the supplier's president or CEO.  Not surprisingly, they said they had not.  We suggested a meeting to ask about the causes of the defects and what had led to the price increase.

The president of the reed switch company was a very pleasant individual and gladly explained his actions.  He told us that the reason for the high number of defects resulted from the highly labor intensive process in making these switches.  He brought us on a short tour through the factory to show us the process. 

Back at his office, we asked why he did not automate the process, if this was the core cause of all the quality issues.  He replied that his company was owned by a parent corporation and that the people at corporate headquarters would not invest without some guarantee of continuing business.  Considering that the purchasing organization continued to threaten to use an alternative supplier, this course of action didn't seem to make sense.  However, if we would consider a written three year agreement, he would be glad to agree to quality improvements based on delivery of automated equipment to various parts of the process.  Furthermore, since this would result in lower manufacturing costs he would agree to pass some of these savings along to the board manufacturer.

In a short time we achieved these remarkable results:

-  Almost every piece of equipment starts the first time.

-  Quality improved to less than 50 PPM defects in less than 9 months.

-  The supplier agreed to decrease prices 10% per year for the next 3 years.

-  Stock prices rose more than 50% after posting favorable financial earnings.

We can achieve similar results for your company.

This gourmet pet foods company had just been acquired by a venture capital firm.  For years the firm had struggled with launching new products to market in a timely manner (especially for the holiday season).  The venture capitalist stressed that growth would be a key objective of the company.  The way business was conducted needed changing to accommodate more growth.  Current business practices were inadequate to meet past goals.  New product launches would be key.  Furthermore, these new products would be manufactured by subcontractors and new designs and packaging needed to be tightly coordinated.

We achieved these results:

- New products were on schedule or ahead of schedule

- Key processes were adjusted to eliminate bottlenecks

Comments and Feedback:

“Job well done.  I would certainly hire him again.” 

“I just wanted to touch base and thank you for helping me through this transition…. Everyone appreciated your time and service!”

Training and Teaching Feedback/Comments

“I just hired 6 new people and am finding your leadership class to be invaluable!!!”

“...was extremely knowledgeable as one of the best listeners I have ever seen.  He possessed many of the leadership qualities he spoke about.  Excellent job!”

 “Made a complicated subject understandable and relevant.”

“Gives positive feedback and is very encouraging in developing our understanding.  Never says, “No” and helps lead us towards the right answers by making us think beyond the surface.”

 “Very knowledgeable on Topic.  Brought a lot of real life experience.”

“Although the class was difficult, the instructor made it interesting and was very concerned about every student’s understanding.  I would highly recommend him to my peers.”

“I would rate this teacher as one of the best that I have had at Northeastern University.  His enthusiasm over the subject makes you want to learn.”

“Engaging lectures… excellent tie-in of material to case studies.”

“Respects all students’ ideas.  Respects diversity regardless. Gives professional feedback. Very excellent teaching skills.”

“This was not one of the best, but “THE” best course I’ve ever taken since I started at Northeastern in 1997.  This was due to Prof. Cote.  He is a great instructor and I would take another class with him if available.”

"I would rate this teacher as one of the best that I have had...  His enthusiasm over the subject makes you want to learn.”

“He gives feedback to real life situations – he is clear and precise.  He is very supportive and encourages learning growth with students… Most importantly I wish more instructors were like him and I wonder what a difference instructors like him would have made..."

Business Case Studies authored by Michael J. Cote

Racal-InterLan and Eltech Electronics PTE

GenRad and the Ford Diagnostic System