A high-tech organisation measured production in its factories by the volume of goods shipped each quarter. The inevitable result was a rush to ship as much as possible at the end of the quarter. This meant that goods would be despatched to the customers’ premises and left there to await more parts or an installation team. Some sales departments intervened in order to protect their relationship with the customer, but this meant finding extra storage space and double-handling sensitive equipment. Losses were inevitable and the situation was further complicated by other costs because despatch from the factory triggered invoicing, so many customers received invoices before they received their goods.
Having obtained an order from a customer and with the assurance of making a profit, it is madness for an organisation to allow its own production targets to create a less profitable situation and alienate its customers.