The Friction Report 10.25.17

                        The Friction Report 10.25.17

                             Team work is not always good         

                                                           by Don Ford

            Team work is a great thing when everyone on the team is working toward the same goal. Having the same people in the same job may insure outstanding production and few errors. Being in the same job on a daily basis is usually good for most people. We would like to point out that being in some positions, all the time, may have its issues.

            Previously we have considered how an inside employee along with a so called, “Company driver”, working as a pair, had removed property without paying.

            When you have the same inside staff, working with the same outside drivers, (this would be parcel deliveries and local drivers) on a regular basis, you increase the potential of a team effort to reduce the inventory in the building (aka theft).

            Today we will consider the case where a parcel delivery driver (outsider) colluded with an inside employee who worked in preparing the parcels for shipment. This happened at a center that I was never manager of.

            If you have any imagination, you should already know what I will present in this lesson. This company employee had worked in parcel shipment preparation for several years. This allowed the staff member to become, shall we say, “Good friends”, with the parcel delivery driver.

            Let’s consider how this could occur. The inside employee who prepared the parcels for shipment could go out into the building to, “Check on an item”, they would get an item that was not ordered, package the item to look like the other packages. The parcel driver would load his vehicle with all the packages and he would separate the package with the stolen item, which he would later drop off at a house as if it were a shipment. 

            All the items that were ordered each day, were shipped, so nothing showed up in the shipping records. 

            How would this, “Team of thieves” get caught?

            Unannounced audits of the parcel shipping area would be a good way to limit the possibility of theft. This type audit was not being done in those days.

            The parcel delivery company would occasionally have an auditor or a trainee ride along. When there is an item that is not on the list, (they do count the cartons), they would question why.

            When caught, does either the inside person or the parcel delivery driver tell who they were working with?

            Even though most of the theft situations have been about hourly employees colluding with an outsider, it would be much easier for any salaried employee to work with others as a thief team.  

            I feel as if these articles about theft, may seem to be very negative to most readers. If one is able to reduce the number of thefts using any information from these articles, then the articles are a total positive! 

            There are many theft opportunities, if you occasionally think like a thief, you may reduce the opportunities.

Don Ford

Post Script

                If you have read these articles about theft, and if you believe they are, “A bunch of bull”, I suggest you may want to update your resume!

   

The Friction Report 10.23.17

            The Friction Report 10.23.17

                             You can trust me with the keys        

                                                           by Don Ford

            As a manager, you must trust some staff with keys and pass codes to the entire work area. The trust level is highest if you have been involved in the entire hiring process of these staff. Obviously, these are the people that have been background checked and have a clear record. Possibly they have worked in situations where you can get a good understanding of how responsible they have been in previous positions.

            With all that said, there are still some people who, for whatever reason, develop a need to be a thief. This story is second hand information as this all happened at a center that I was not responsible for. 

            For some of the old heads, you may remember the days when we had microfiche readers. These were devices that you could put a sheet of microfilm into and view the item along with it description. When these modern devices came into existence, the company stopped using a paper catalog. I remember, when we used the paper catalogs, it was almost a continuous job for one of the office staff, to keep all the catalogs up to date.

            There was a department manager who took a microfiche home and kept it. This department manager was a trusted employee with keys and pass codes to that entire operation. As the story was relayed to me, this person would allow people to order items using the microfiche, and he would then go to the center, during none working hours, and get the item/s. He would then sell the items. As I understand it, he may have kept some items at his home to sell. How long did this go on before he was caught, I don’t know. He was caught and as I remember the story, he went to prison for his crimes.

            To the managers, trust but verify. Trust your staff but you must occasionally check to be sure. I can’t say how they were made aware of this thief, but they could have used a print out of openings and closings of the building.

            These printouts show date and time along with the name of the individual entering and leaving. Occasionally review the printouts just for your own knowledge. It is suggested that a printout occasionally be shared with those who have keys and codes so they know you can, and do check.

            There is another area that you should be aware of, and that is shipping. By shipping I mean company trucks.

            Years ago, at the Waco center we had a problem with a driver who liked to steal from the company. This person worked for the trucking company and he was not a DIB employee. It is easy for a truck driver to steal merchandise and it is difficult to catch them. While out on a delivery route, a driver can take an item from the trailer and place it in the cab of the truck. When he returns to the center he drops the trailer and drives to where his vehicle is parked. He removes the item from the tractor and places it in his vehicle. The member does not get charged for the item as he files a shortage report.

            We were not sure how long this person had been stealing from the company but it must have been a while. He had a sells person with a list of items for sell, of course at a reduced rate. The sales person was his wife and she literally carried a list of items available. My memory is not clear on how they were caught but I believe someone they offered items too, reported them. A thief married to a crook, nice couple!

   

            Along the same line, when an item is loaded wrong on a trailer, if it is not on any waybill, it could be tempting for the slightly dishonest person to take the item. Since it isn’t documented, no one will know!

            How does an item get loaded wrong? It can happen two ways. Most likely due to an error, although items are counted by the filler, and the counts verified by the loader. An item can be miss loaded intentionally. Let’s say the loader and the delivery driver are working together as a team. The loader intentionally miss loads the item and communicates to the driver. The driver then takes the item that is not documented.

            Let’s consider one other situation. Let’s say the driver is caught taking the item. If he does not tell you that he was working with another employee, the other thief gets away with it, and you have a thief waiting to try again.

           

            We will discuss parcel carriers in the next article.

Don Ford

Post script;

            Understand that learning about theft should not cause one to be negative and think that everyone is bad. Most people are good honest people and would not steal. The problem is, you as a good honest person, think like a good honest person, and that may cause you to not be aware of the dishonest among us. Many of the dishonest people seem like the most honest.

                Be watchful of all.

The Friction Report 10.19.17

    The Friction Report 10.19.17

                             Be aware of the thief        

                                               by Don Ford

            In the previous report I stated, “I did on occasion look for ways to steal”. Personally, I think that each manager and anyone in charge of security should, on occasion look for ways to steal. Take some time and consider, how you could, as an employee, remove product without paying for it.

            If you think there is no theft going on in your center, you are wrong!

            One area to consider is every door that leads to the outside of the building, which can be opened without an alarm going off.

            As noted in the previous report, staff could set an item outside the building with the intent to pick it up later or place it there for someone else to pick up. It is important that you not have areas where scrap items and dunnage are placed outside in a non-secured area, as it is easy to hide merchandise among scrap and dunnage.

            At one of the centers, during the summer months, they opened the back doors for ventilation. There was some brush along the back side of the building, and on the other side of the brush there was a business. The Manager of this center observed an employee, during lunch or break, toss merchandise out the door. The employee was supposed to be in the break room and not out in the center. The intent of the thief was to, drive up the street to the other business, walk through the brush and get the merchandise at night. How many times did this happen before anyone was aware. 

Be sure all staff leave the work areas during breaks and lunch.    

Keep all doors secured, if they are used for ventilation have the doors covered with a secure screen of some type.

Keep the unsecured areas outside of the building clear of scrap or dunnage.

Occasionally, walk or drive around the outside of the building, looking for opportunities.  

While we are on the subject of setting merchandise outside a door, let’s consider setting merchandise on the other side of a door, but not outside. What and How?

            Theft is not always a singular operation and it is often easier with two. Again this is a true story of theft. I received a call from the Waco police stating they had merchandise that belonged to DIB. They told me the story that they had stopped a pickup loaded with merchandise from DIB. They explained that the two thieves they had in custody, had stolen the merchandise out of a shed belonging to one of our employees. They wanted me to come and pick up the merchandise, saying bring a pickup truck, there’s a lot.

            All the merchandise was still in the original containers. I brought the load back to the center and instructed a supervisor to make a list of each item, and to check the inventory on each item to see if the item was short by one. Every item was short by one!

            The employee that these two indicated they had stolen from, was our night computer operator. This person stated to police that he bought the merchandise from someone at the flea market. The night computer operator worked alone, did have access to the office and break room but not to the main building. The police could not get the employee to admit to taking the items, he was not arrested. This person was terminated but not for theft.

            I tried to find a way to get out into the warehouse without setting off an alarm. I even got up in the ceilings to see if one could get from an office restroom to a warehouse restroom but I could not find a way.

            This indicated a second person. I believe that the second person would, during the day shift, bring an item into the computer supply room and leave it. Then, when the night operator left the building between 2:00 and 5:00 AM he would take the merchandise with him.

            We never knew who the second person was.

                Where there’s a will, there is a way, or, where there is merchandise, there is a thief!

Don Ford

The Friction Report 10.17.17

                The Friction Report 10.17.17

                                      Learn to be a thief   

                                                           by Don Ford

            I would like to begin this by saying, “I have never stolen anything from HWI or DIB”! Having said that, I did on occasion look for ways to steal from both.

            Do those statements seem to present a contradiction? Possibly, but both are true. After experiencing a couple situations where people were attempting to remove items without paying for them, I was told, “If you want to catch a thief, you need to think like a thief”! That statement stuck with me and occasionally I would think about and look for ways to steal. 

            There are many ways to acquire items without paying, and today we will point out two of them.

            This is a true story from years ago at Cape. Employees are allowed to purchase product from the company weekly. Employees would complete a hand written order and turn it in to the office. The orders were filled and placed on carts near the employee exit. At the end of that day, staff would pick up their order as they left the building. Even though a salaried employee was usually at the door as staff left, they did not check the orders for accuracy.

              

            A staff member told another staff member, “It would be easy to steal and not get caught, you just take an item and place it on the cart near the exit with the others. At the end of the day you pick up the item as you are leaving, no one checks what you are getting. 

            Later I was made aware that a certain employee, was going to steal some golf balls and golf gloves. I reported this to the manager who thanked me, and asked me to not say anything about this to anyone.

            At the end of the day, there was a salaried employee at the exit as usual, and the manager was outside the front door next to the exit. The employee picked up his items and walked out. The manager was waiting on him and brought him and the items back into the building. He was terminated. They began to check the employee orders after that.

            Everything that leaves the building must have written approval, always check everything that is leaving the building.

            Set an item outside a door and pick up after work.

            This situation happened but I did not let it become a theft termination. It was known by staff that nothing was to leave the building without and order or written permission. This included items that were in the trash.

            A staff member who was one of the older employees, and who had worked there for several years, took an item from a trash cart and placed it outside the receiving department door. This was reported to me. I was a supervisor at the time and I fully intended on waiting inside the receiving door and when I heard the employee pull up, I would step out and catch him taking the item.

            The bell rang and staff were exiting the building, and I was inside the door waiting on the employee. I had just enough time to consider what the results would be for this employee. An older employee, married with children and grandchildren. I knew this employee was not wanting to steal anything, and I assumed this employee thought, it would be ok to take an item out of the trash. I decided to step outside and bring the item back into the building before the employee arrived. I did here the employee’s vehicle drive up and leave.

            The next day I called this employee into my office and we had a frank discussion. He stated his point, that the item was in the trash and it was going to be thrown out. I explain that he could have, and would have been terminated if he had taken the item. He thought about that statement and then he thanked me for not letting him take the item. There was a note placed in the file about items in the trash.

            Everything that leaves the building must have written approval, always check everything that is leaving the building.

            You as a manager must be aware of the theft possibility. I believe you should terminate all thieves. I also believe you should consider the entire situation. If the staff member is intending to steal, terminate!

            More discussion of theft in following publications.

Don Ford

The Friction Report 10.11.17

               

                                          Follow up to posting of 08/09/17

      Observation and Communication

                                                              by Don Ford

            In response to a request from a reader, I am revisiting this subject.

            In this teaching moment, and I do see this as a teaching moment, you will likely assume I am touting my way of doing things. I am, and my way is the correct way.

            History:

            I am sure you would not be surprised to know, I have always been a visual learner. If the instructor presented a lesson showing and explaining the subject matter, I would learn and remember the information. If I were told to read a chapter, I had little chance of understanding the material. It is as if the first few words go away as I am reading other words.

            Now we know why I am good at observing settings, situations, and people.

            I am working from past memories, as many of today’s management teams have changed since my retirement. That being said, I believe that most of the management team members do not have the time to, do not have the patience to, or, do not want to take the time to observe. I would bet that many of these members of management consider themselves as observing during their daily routines.

            During their daily routine, managers and supervisors observe a select group of situations to understand the work flow. They may look at a computer screen to get a progress report. One knows that they are ahead, even, or behind, but not why, by looking at the report.

            One may go to the starting benches of various work areas to see how the work is progressing. While there, they may review each person’s production up to that point. They know someone’s production is better than another, but not why. 

            One may go into a work area and see a buildup of product (dept. getting behind) without knowing why. This manager may move an employee or two into the area to catch them up.

            All of the above situations require some review and some effort from the manager or supervisor, and I would say this is normal. I believe these managers and supervisors would tell you they do not have enough time during the day to, “waste time trying to observe”.

            I would say to these managers and supervisors to review their daily work routines and look for wasted time. There are many opportunities that one can find to save time, if only they look.

            If in fact supervisors and managers do not have any extra time, and there is no wasted time on the manager’s part, talking, making personal calls, taking extra time at break, thinking about a project at home, checking personal emails, waiting for a meeting to start, etc. then additional help is needed.

            What are the improvements that would occur, when members of the management teams, on a regular basis, begin to observe and talk with staff? I believe morale can be improved in major ways, if management will, on a regular basis, take the time to talk with staff during observation periods.

Attention: when talking to staff, it is often more beneficial for the staff member to talk with a manager, other than their own. An outsider will observe situations and receive comments that the usual manager will not, or an outsider will be more likely to listen to comments with more interest.

            Managers must share information they have learned, weather by observation or conversing! This at times is not comfortable, but necessary. 

            Allow me to say, management should use all their knowledge in the work setting, and they should learn from present day employees. That seems so simple doesn’t it, and it is, but how many do.  

            Can you, without fear of reprisal, communicate your observations and discussions to other managers? Managers of all levels should be able to honestly communicate with other managers. What does that manager know, if only they would tell you, and if only you would listen?

Regardless of who you are, or what level you are at, “You can, and should improve”!

Don Ford