BACK IN THE '60S TOM STALLKAMP faced one of his toughest challenges - how to make more money on the soda pop machine at the Delta Upsilon fraternity house at Miami University of Ohio. As the fiat's treasurer he was responsible for ordering the pop, but the company made him take grape and orange soda along with the Coke and 7-Up.
None of his frat brothers bought the grape or orange - it didn't mix well with whiskey or vodka. So those bottles piled up. Undaunted, Stallkamp bought a sixpack of beer and plugged the bottles into the vending machine, separating each one by five or six bottles of grape and orange. The pop disappeared in record time. That eliminated waste and made money.
As the new president of Chrysler, Stallkamp, 51, faces the same land of challenge today, but on a grander scale. His mission is to cut waste out of the company's process of building and selling vehicles. He says about a third of the cost is waste and that adds up to thousands of dollars per vehicle. But that's only one challenge. He must also improve quality and sandwich more car sales - Chrysler's orange and grape pop problem - between the more popular trucks. The bulk of Chrysler's profits currently come from trucks.
Following are Stallkamp's thoughts on these challenges, his new job and the industy
Q: How will you improve quality?
A: Quality problems are rarely with one part of the corporation. The problem is usually the process. We must get design, engineering, procurement, sales and manufacturing working together to solve the problem.
Q: How will you change the process?
A: We will identify more with real-life customers. We'll accelerate the response time when we have a problem. We also meet with all the executive vice presidents once a week for several hours, to make sure we are all on the same team and are working on common goals. (Vice Chairman Robert) Lutz sits in on many of those meetings. He's a good coach and advisor.
The secret to developing new vehicles is integrating design and engineering into one process. We're going to make the team operation even better than it has been.
Q:How did you get the president's job?
A: I wasn't aiming for this. It is a recognition of what we do as a teas I was selected from a large group of very capable people. If I had an agenda, I shouldn't have been picked.
Q: When you were head of purchasing, a lot of design and engineering work moved to the suppliers. Will there be more of that now that you're president?
A: I don't see expanding a lot on the supplier side. We put a good strategy in place. Suppliers must realize, however, that the OEMs are asking a lot of them. Not all suppliers have figured out they have more responsibility. They are responsible for R&D, customer focus, product development and running a global business. They must step up to that.
Q: Francois Castaing (executive vice president, international operations) is only 52, but he has chosen to retire. How does that affect you?
A: His leaving is a personal disappointment. He is a close friend.
Q: What kind of new technologies or niches do you see?
A: We will look at unrelated businesses such as semiconductors. I hope our suppliers seek out technologies in other businesses. We will not only look at our suppliers but at those in other industries.
Q: As president you have some say over Chrysler's charitable contributions. Where would you like to see more money go?
A: I'd like to see the Chrysler Foundation support more reading programs. That will show in the face of the community as well as the nation.
Q: You didn't get a seat on the board of directors or the title of chief operating officer. Why?
A: The way we run this place, the question is, who needs the COO title? The functional lines are blurred at Chrysler. We work well together in a small close-knit group. We'll try and be even less functional. I hope I was selected for my managerial skills rather than any functional ability.
As far as the board goes, there is a trend in modern U.S. companies to have fewer insiders. Only (Chairman) Bob Eaton and Lutz are on our board. It doesn't bother me.
Q: What is your most important goal at Chrysler?
A: Our reputation is very important to us. Chrysler is a business and you can bring the same ethics into business as you have in your personal life.
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