Outside Consultant Perspective

1. Outside Consultant Perspective Instead of using an outside contractors perspective two contractors for DP&L were interviewed for this section giving honest insight to the future of the company.

2. Will DP&L Stay Competitive? • The two contractors had seemingly very conflicting views on this subjects. • Contractor 1 says NO • Contractor 2 says YES • The reasons for their answers are very interesting

3. Contractor 1 Says NO DP&L will not stay competitive because of the following reasons: • Poor infrastructure • lack of maintenance • Poor Leadership in management positions • No clear direction

4. Contractor 2 Says YES DP&L will stay competitive because of the following reasons: • The need for electrical power will still be around He also says the level of competitiveness will decrease because of the rising cost of fuel

5. Why the Conflicting Views? The views may not be as conflicting as they appear It seems the only reason contractor 2 states they will stay competitive is because of the high demand for the product, not the efficiency of the company.

6. DP&L Strengths • The product itself • Length of time they have been in business • Experience of employees • Expertise in middle management

7. Weaknesses of DP&L • Lack of foresight in updating systems (mechanical and procedural) • Lack of planning • Disconnect between management and plant operations • Too many layers of authority • Average age of employee is very high

8. Analysis of Strengths DP&L will stay competitive because their product will always be in high demand and the company had good report with customers due to many years in the business. Their employees experience and years with the company allows gives them immense understanding of the company and how it operates.

9. Analysis of Weaknesses • There is a barrier between upper management and middle management that causes tension. The priorities and goals of upper and middle management do not align. The age of the employees is quite high and although this a great advantage right now when this group retires there will be little experience left.

10. Suggested Action Relationship between upper and middle management needs to improve and develop uniform goals. Upper management needs to be more involved with day to day operations to better understand the processes. Steps need to be taken to prepare when current workforce retires. Most of the employees have been there for 20-30 years. When they leave much experience and knowledge will leave with them. DP&L needs to start preparing for this now.

11. More Competitive Course of Action Time Management • To find a better way to manage the efficiency of the plant • Reduce wasted time • Find more efficient processes • Manage the workloads for better time mamangement

12. Process Management • Modernize the processes • Educate on TQM tools • Educate TQM procedures • Outline Flow charts • Use Flow charts to find lacking processes

13. Increase Productivity • Educate with Flow Charts • Educate all employees in Time management • Educate with Job descriptions • Utilize incentives for meeting production expectation • Get rid of noncomformities

14. Reduce Cost • Incentives for safety • Reduce waste materials • Use materials that will last • Utilize JIT and other supply attribute • Use suppliers with low cost shipping

15. Become More Efficient • Perform PM on regular basis • Repair equipment in a timely manner • Better Management employee relationship • Have open door policy with employees • Listen to employee’s concerns