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Philosophy

We must become a part of a continuous process to make the customer the market leader. By combining our efforts, we have the opportunity to generate a "symbiotic synergy."

In the past, vendors were perceived as purveyors of parts. This is a commodities orientation in which the customer implies, "We are the experts ... this is what we need to solve our problems." We seek to shift the perspective to one of a service-based orientation, in which the customer implies, "Here are our problems ... help us solve them." This shift requires an examination of what we are selling. IRG seeks to satisfy the market demand for technical expertise, quality product and expedited delivery. We will look to increasing the value of our service offerings by:

  • Reducing costs by improving the efficiency of process.
  • Being flexible in delivery and responsiveness.
  • Becoming a technologically creative innovator.

IRG believes that the longevity and profitability of all companies is solely based on their ability to learn. Information technology has long since created the global village. Advantages from innovation once enjoyed for lengthy periods can no longer be realized. The only sustainable advantage will be the ability to assimilate and adapt. We must prepare for the role of both teacher and student. Success will be dictated by our ability to deliver the right information to the right person at the right time both internally and externally.

Our ability to learn is the sole determining factor in our ability to adapt. Our ability to adapt is the primary factor in our ability to endure. Our ability to resolve a customer' inquiry (request for information) in an accurate and timely fashion is the key to market dominance and profitability. In fact... information becomes the product. The focus must be in the transfer of personal knowledge to corporate knowledge, in making that knowledge accessible both internally and externally; thus raising the core competency of both IRG and our customers.

Finance is only one dimension of performance. Our primary objective should be to survive (profitability being inherent to survival). If our focus is to add value to our customers' product or service, does not the duration of the relationship become of great importance? If the relationship is not maintained, how can we enjoy the future benefits of our efforts? Our survival depends on our ability to be flexible. We must be specialized enough to have core competence, but general enough to adapt to the customers' needs.

Most of the innovation in manufacturing has been directed toward process. While there is still great opportunity to provide added value in this venue, an equally significant opportunity lies in the elevation of maintenance standards, thus improving equipment up-time and accuracy. As process becomes more efficient, down time becomes more costly.

Maintenance standards must move from the reactive to the proactive. Providing front line personnel with better information and becoming involved in maintenance and production focus groups will increase internal technology transfer and assist in delineating internal and external customer needs. The application of our selling skills will assist in the implementation of internally generated ideas, allowing full utilization of individual expertise.

It is also important to understand that the greatest opportunity for our customers' operating cost reduction involves decisions made before and after procurement. By focusing on the procurement process, we both limit our profitability and exacerbate problems inherent to the present process. As price remains the lowest common denominator, product support becomes non-existent.

Purchasing departments when given "correct" information, do an excellent job of procuring product. However, no matter how exhaustive their efforts, they are limited by the core competency of the personnel providing the information. Front-line employees generally lack the ability to identify component manufacturers, opportunities for interchange and cost effective upgrades.

The present trend to downsize by reducing the most expensive employees (those with the most experience) further reduces the core competency of the employee knowledge pool. Organizational structures that measure / reward departmental competency via systems providing incongruent focus are damaging to both profitability and growth. We must become a part of a continuous process to make the customer the market leader. By combining our efforts, we have the opportunity to generate a "symbiotic synergy."

Vincent J. Naccarato, President
Industrial Resource Group, LLC

Note: I would like to thank Peter Senge the author of The Fifth Discipline, (Doubleday, 1990) who dramatically changed the way I think about what it is that this company really does. Many of the thoughts that are described above are a direct reflection of the ideas delineated in his book.

Oil Refinery Hydraulics

Oil Refinery Hydraulics

Oil Refinery Hydraulics