2
price which lasted through the period of substantial growth without further change until 1943. Increased production costs necessitated raising the price to 9.5 cents per pound, where it remains today. Under normal conditions, the substantial increase in volume which has taken place over recent years would in all likelihood have made possible a further reduction in price, but so far, savings due to increased vol- ume have been off-set by increased costs in transportation, labor, and facilities. Further price reductions when and if they become possible will undoubtedly be due primarily to advanced technological im- provements rather than to expansion of production facilities. Certainly, such events lie far beyond the adolescent period which in the case of furfural probably ended about 1937. While the present discussion has been devoted largely to pricing policies, sight must not be lost of the importance of the other steps in the development of a new chemical. Each step is essential ; and for Is THE acknowledgment, investigation, and adjusting of a complaint a matter for sales or production? Both departments are involved and historically either may act as the respondent, the défendent if you please, when the plaintiff, the complain- ant, files the case. We are not proposing a "new look" method of handling a complaint because what we shall describe has been used ef- fectively for a period of years and has been paid the compliment of duplication by others in essence or principle. A successful organization is a balanced one—good research, engineering, produc- tion, control, sales, finance—without domination. A complaint processed in a routine man- ner will seldom yield better than routine or subroutine results. We have found that the necessary investigation and the reach- VOLUME 2 6, NO. 2 4 . » some products, undoubtedly other steps could be added. From the case history of furfural there is additional evidence in support of the principle that if one has a useful chemical, a versatile chemical, to begin with, and the time is well chosen, uses will develop if the chemical is brought to the attention of enough people and offered at the lowest possible price, even if the techniques em- ployed are imperfect and, even by some standards, unorthodox. Conversely, it is obvious that no lasting markets can be developed for a poor product, however excellent the techniques employed. While the first quarter century of the commercial development of furfural has been due primarily to its selective solvent properties, furfural is now entering an in- creasing variety of chemical syntheses. Furfural has been known for 115 years, but the chemical and industrial knowledge of the furans has only begun to unfold in the past 20 years, perhaps even in the past decade. So interesting have these ing of a conclusion be that through ad- justment, or otherwise, is best handled by an independent group such as the modern development department which is not trib- utary to any of the major departments of a manufacturer. No company will invite complaints, but every company will have them whether they be justifiable or unjustifiable. To conclude that "the customer is al- ways right" is another pseudo axiom proved wrong. To proceed on such an assumption may result in an injustice to one's associates, one's company, and per- haps to the customer! Consideration of this point by one of the large chemical companies a number of years ago led to what has proved to be not only a rational view but a profitable one to both the manufacturer and the customer. The more modern view can be summarized in a question when a complaint is received: what are the facts? » JUNE 14, 1948 developments been that it has been pre- dicted that in the next 20 years the prog- ress of furan chemistry would rival the advances made during the past 70 years in benzene chemistry. The synthesis of nylon from furfural is one striking example. But important as the commercial de- velopments in furan chemistry have al- ready been, new uses are in the making in various laboratories which may well over- shadow all that has happened so far. As the chemical possibilities of this ver- satile aldehyde unfold, new vistas appear to the research worker. May these and other chemical discoveries be speeded on their way in the service of man by the most efficient development techniques that we can contrive! Literature Cited (1) Svmposium on Furfural, Ind. Eng. *CV*em.,40,2O0(194S). (2) Hitchcock, L. B. t and Duffey, H. R.. Chan. Eng. Progress, in press. (31 Williams. Roger. Jr.. Ckem. Inda.. 59, 622(1947). One can reason that either party to a transaction can be mistaken or in error— error of omission or commission, error in judgment. The circumstances lend themselves so admirably to improving re- lations rather than allowing them to de- teriorate that we believe our title is de- scriptive—capitalizing complaints. In the case of chemicals, one is dealing with entities, which in most cases are both manufactured and sold to a specification. Aside from contamination, the chemical and physical properties can usually be agreed upon, but minor variations may have an influence on utility. Classijica tion of Complaints (a) Quality which covers not only ad- herence to agreed upon specifications, but physical form, discoloration, and con- tamination. (b) Containers in so far as they may 1773 Sgmpomium on CKemical AMarMeeting · . Capitalizing Complaiits LYNN A. WATT, Director, Development Department, Organic Chemicals Division, Monsanto Chemical Co., St. Louis 4, Mo. "The customer is not always right 9 ' is a view -which Has proved to he profitable to manufacturer and customer alike in this new approach to complaint problems—"What are the facts?'*

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Page 1: Capitalizing Complaints

price which lasted through the period of substantial growth without further change until 1943. Increased production costs necessitated raising the price to 9.5 cents per pound, where it remains today. Under normal conditions, the substantial increase in volume which has taken place over recent years would in all likelihood have made possible a further reduction in price, but so far, savings due to increased vol­ume have been off-set by increased costs in transportation, labor, and facilities. Further price reductions when and if they become possible will undoubtedly be due primarily to advanced technological im­provements rather than to expansion of production facilities. Certainly, such events lie far beyond the adolescent period which in the case of furfural probably ended about 1937.

While the present discussion has been devoted largely to pricing policies, sight must not be lost of the importance of the other steps in the development of a new chemical. Each step is essential ; and for

I s THE acknowledgment, investigation, and adjusting of a complaint a matter for sales or production? Both departments are involved and historically either may act as the respondent, the défendent if you please, when the plaintiff, the complain­ant, files the case.

We are not proposing a "new look" method of handling a complaint because what we shall describe has been used ef­fectively for a period of years and has been paid the compliment of duplication by others in essence or principle.

A successful organization is a balanced one—good research, engineering, produc­tion, control, sales, finance—without domination.

A complaint processed in a routine man­ner will seldom yield better than routine or subroutine results. We have found that the necessary investigation and the reach-

V O L U M E 2 6 , N O . 2 4 . »

some products, undoubtedly other steps could be added.

From the case history of furfural there is additional evidence in support of the principle that if one has a useful chemical, a versatile chemical, to begin with, and the time is well chosen, uses will develop if the chemical is brought to the attention of enough people and offered at the lowest possible price, even if the techniques em­ployed are imperfect and, even by some standards, unorthodox. Conversely, it is obvious that no lasting markets can be developed for a poor product, however excellent the techniques employed.

While the first quarter century of the commercial development of furfural has been due primarily to its selective solvent properties, furfural is now entering an in­creasing variety of chemical syntheses. Furfural has been known for 115 years, but the chemical and industrial knowledge of the furans has only begun to unfold in the past 20 years, perhaps even in the past decade. So interesting have these

ing of a conclusion be that through ad­justment, or otherwise, is best handled by an independent group such as the modern development department which is not trib­utary to any of the major departments of a manufacturer.

No company will invite complaints, but every company will have them whether they be justifiable or unjustifiable.

To conclude that "the customer is al­ways right" is another pseudo axiom proved wrong. To proceed on such an assumption may result in an injustice to one's associates, one's company, and per­haps to the customer!

Consideration of this point by one of the large chemical companies a number of years ago led to what has proved to be not only a rational view but a profitable one to both the manufacturer and the customer. The more modern view can be summarized in a question when a complaint is received: what are the facts?

» J U N E 14, 1 9 4 8

developments been that it has been pre­dicted that in the next 20 years the prog­ress of furan chemistry would rival the advances made during the past 70 years in benzene chemistry. The synthesis of nylon from furfural is one striking example.

But important as the commercial de­velopments in furan chemistry have al-ready been, new uses are in the making in various laboratories which may well over­shadow all that has happened so far. As the chemical possibilities of this ver­satile aldehyde unfold, new vistas appear to the research worker. May these and other chemical discoveries be speeded on their way in the service of man by the most efficient development techniques that we can contrive!

Literature Cited (1) Svmposium on Furfural, Ind. Eng.

*CV*em.,40,2O0(194S). (2) Hitchcock, L . B.t and Duffey, H . R..

Chan. Eng. Progress, in press. (31 Williams. Roger. Jr.. Ckem. Inda.. 59,

622(1947) .

One can reason that either party to a transaction can be mistaken or in error— error of omission or commission, error in judgment. The circumstances lend themselves so admirably to improving re­lations rather than allowing them to de­teriorate that we believe our title is de­scriptive—capitalizing complaints.

In the case of chemicals, one is dealing with entities, which in most cases are both manufactured and sold to a specification. Aside from contamination, the chemical and physical properties can usually be agreed upon, but minor variations may have an influence on utility.

Classijica tion of Complaints

(a) Quality which covers not only ad­herence to agreed upon specifications, but physical form, discoloration, and con­tamination.

(b) Containers in so far as they may

1773

Sgmpomium on CKemical AMarMeeting · .

Capitalizing Complaiits LYNN A. WATT, Director, Development Department, Organic Chemicals

Division, Monsanto Chemical Co., St. Louis 4 , Mo.

" T h e c u s t o m e r is n o t a l w a y s r i g h t 9 ' i s a view -which Has proved t o he prof i tab le t o m a n u f a c t u r e r a n d c u s t o m e r al ike in t h i s n e w a p p r o a c h t o c o m p l a i n t p r o b l e m s — " W h a t a r e t h e facts?'*

Page 2: Capitalizing Complaints

out be suitable l'or ferrying a givt;n commodity.

(c) Routing of shipments, invoices, discounts, etc.

All complaints may b e handled by ont· «roup, but those under (a) and (b) requin· the attention of a n experienced, compe­tent, technically trained individual who has a flair for fact finding plus a judicial mind. As to (c), since this involves princi­pally clerical work i t is recommended that complaints involving this classification shall be handled separately, but possibly under the same general supervision.

Records

It is assumed not only that any modern manufacturer keeps a complete record of incoming materials as well as of manufac­turing, but that a l l packages of finished products are so coded that their entire his­tory through production, packaging, and shipping can be traced. It is necessary that these records be kept currently so that if the code or lot number of a ship­ment which is the basis of a complaint is n»»i given, but only the date or invoice number, it can be trwed without delay.

Tracing Through

Itegardless of how a complaint is re­ceived—by mail or verbally--all com­plaints should be referred to one individ­ual, preferably at the point where the material originates. The notification should include as much or all of the follow­ing data as possible: name and address of the complainant, date of shipment (or invoice number from which t hat date may be determined), the name of the product, the quantity involved, and the; manufac­turer's lot number, plus a sample drawn from the shipment. This is t o be followed by a statement of the complaint itself.

It has been found a convenience to have a printed form for recording this informa­tion. When completed, the form is sent in duplicate to the operating superintend­ent of the plant from which the material originated. When the invesgtiation is completed the original is returned with the necessary analytical data plus what­ever interpretation the operating superin­tendent believes pertinent.

In a simple case, such as one of contam­ination wherever it may have occurred, this may be sufficient, but in more com­plicated cases, personal discussion with analysts or production men may be nec­essary. If utility is in question, corre­spondence with o r even personal discus­sion with the complainant may be re­quired. In any event, the objective is to uncover all pertinent facts and arrive at a just conclusion.

From experience it has been found ad­vantageous to have the handling of com­plaints assigned t o the same person or at least within the same group which handles specifications. I n one organization this falls within a technical service section which serves the interlocking pur{x>se of

keeping the "complaint man" closely in touch with operations, analytical methods, and trade requirements.

Promptness

Regardless of one's first-blush opinion as to the significance of a complaint, it i s pre­sumed that the matter is important to the man who made it. In many cases a com­plaint can be answered by inspection—i.e., inspection plus preliminary consideration or examination of a reserve sample or re­turned sample carried out qualitatively in a few minutes. This should lead to a t least a preliminary report or acknowledg­ment of receipt o f the complaint. I t should be accompanied by an estimate a s to when a final report with recommenda­tion may be expected—three days, two weeks, etc. Keep that promise, or if further delayed, give notice of the delay prior to the expiration of the time set. Be prompt, be precise», be technically correct.

If a visit to the complainant's plant is viewed as necessary, arrive at that con­clusion as quickly as possible, and make the arrangements in advance. In certain cases i t is good psychology to be accom­panied by the one in charge of production. liCt him see how such a small, to the pro­duction man, inconsequential item as a change in physical form may upset a pur­chaser's established routine.

Typical Examples*

A carload of plasticizcr in drums was sampled on receipt. The usual procedure was followed, sampling 10%, and, as it happened, two drums were reported t o contain water. Shall the customer return the entire carload? Action: The record of the storage tank a s borne out by a reserve sample, showed the material to be anhy­drous and the suggestion that all drums be sampled, the extra charge for the shipper's account, developed that the only drums containing water were those which had been sampled originally. This was a coincidence. Result: The purchaser had the plasticizer when he needed it; several hundred dollars i n freight charges had been saved; everyone was happy. Just why two drums were sent out containing water was the subject of a separate inves­tigation within the shipper's "family."

A pharmaceutical product was reported as "loaded with chlorides." I t so hap­pened that this was, from the manufac­turer's viewpoint, an impossibility, but that was the claim. Moreover, the mate­rial was packed in hermetically sealed tins so that there could be no contamination, but examination o f the contents of a re­turned package proved the customer was right! The package was apparently nor­mal in appearance but it had been ex­ported. A bit of detective work in the laboratory simulating, almost, the tech­nique of a crime commission proved that with meticulous care the bottom had been removed from the tin without disturbing

the seal. About half the contente werr replaced with salt and the bottom very carefully returned and the neat soldering job lacquered. In domestic shipments we do not recall an instance of adulteration. But the one handling complaints must have an open mind and possess the char­acteristics of a detective.

Low yields claimed b y a purchaser of nitrating acid were found, upon inspection of the nitrating plant, to be due not to the acid at all but t o engineering faults, prin­cipally poor agitation.

Another surprise with reference to yield was in the case of a medicinal product. The product coming from a new and im­proved plant was actually purer. Samples had been approved preliminarily, but checking the tablet manufacturer's pro­duction records showed without question that yields were low. The fault was in the crystalline form of the new product, a complete surprise t o all parties concerned The remedy was quite simple—changing the type of stirrer in the crystallizer.

It is seldom that the individual sales­man is close enough to production meth­ods and production personnel to analyze complaints. Therefore, while admittedly he can handle some of them, he is not in a position to bring out the real facts or both sides of the case. It is worth while from the standpoint of either the producer or the purchaser t o learn more than they al­ready know—to improve operations to foster a mutual feeling of confidence in the integrity of the respective parties. Prop­erly handled complaints not only cement business, but extend business. They can be utilized as "getters." Capitalize com­plaints!

As a supplement to this discussion, any­one interested in the proper handling of complaints where a n adequate policy has not existed before must realize that it may be more difficult to sell his own organ­ization than it is to sell the customer. This is only another example of the prophet being without honor in his own country. The sales manager will have his own ideas ; the production man may not be accus­tomed to "telling all." The laboratory may have had difficulties, and these groups are not always representative of the producer; they may be representative of the purchaser. There is even the individual salesman whose account is "special."

But in all these matters there is a com­mon denominator—basically, your busi­ness is like my business. D o not argue. Develop a few cases as examples. Help the dissenter in a difficult case and thereby convert him. Protect your sources of in­formation and be impersonal a s well as factual in the judgment as rendered. Be factual but not critical.

THIS concludes the Symposium on Chemical Mar­keting which was presented a t the 113th meeting in Chicago, April 21, under the sponsorship of the Chemical Marketing Section of the Division of Industrial and Engineering Chemistry. The other papers given at the symposium were preeented in the June 7 issue of C&EN.

1774 C H E M IC AL A N D E N G I N E E R I N G N E W S