ABOUT THE PUBLISHER
The above excerpts are from some of the many publications that have either published articles or quoted Chuck Diaz honoring him with media acknowledgment of his expertise in manufacturing production control and maintenance repair and overhaul management. With fifty years of manufacturing experience Chuck Diaz has truly become one of the most highly respected executive management consultants in those industries. His expertise not only includes the development and implementation of systems, but the business management as well.
Lockheed Martin MEMO
Memo for Record October 21, 1997
Subject: Suggested Lockheed Martin – XX Inc. Teaming Arrangement
Why is AXXXC Successful?
We, both Lockheed and AXXXC, have been asked by several organizations (JLSC, HQ AFMC/LG) to explain why we have been successful at AXXXC in implementing COTS products while other organizations have not had our success. In the paragraphs below I’ll discuss why I believe we have been successful in implementation at AXXXC and suggest a teaming arrangement, which will allow us to duplicate this success at other, future, sites.
Let’s start with the definition of “Insanity”. Insanity is continuing to do things the same way and expecting different results. At AXXXC we did not continue to do things the same way that other MAXIMO implementers were doing them.
The Critical Difference at AXXXC
The key to our success at AXXXC is primarily the presence of one individual with unique skills, abilities and credentials. That person is Chuck Diaz. Chuck does not have a degree, he is not APICS certified, and he is not even a member of APICS. However, Chuck does have over 35 years of successful implementation experience. He worked himself up from the shop floor to the president, CEO and chairman of the board of a publicly traded company with ten implementation consulting offices across the country. Chuck exudes confidence in his ability to assess a manufacturing situation and come up with procedures and policies which will result in much improved organizational performance using whatever software the client company might be using. Prior to joining Lockheed Martin, Chuck had been able to market his knowledge and skills to many different manufacturing companies at $1500 per day. When I hired Chuck I had one position to fill and two applicants. The guy I didn’t hire had a BS degree from a U.S. Military Academy, an MBA from MIT and was certified by APICS at the CFPIM level. After interviewing both candidates I selected Chuck. I’m glad I did. The critical difference? One individual had studied, read, taught, written about and used an MRP II system; the other had successfully implemented many MRP II systems in many companies. Again, the key difference? One was an MRP II user; the other was an experienced implementer. The difference is enormous.
No other site has a professional MRP II consultant/implementer on staff. I’m certainly not one, and neither are the managers at our other sites. No one else has a person on their team who made his living successfully implementing MRP II systems. Why? Simple. Those guys and gals don’t normally respond to employment ads. They are entrepreneurs, they consult, and they don’t become employees. I lucked out. Chuck was working in California, consulting at $1500/day and looking for something to fill in his non-consulting time. Also, he wanted to reduce his travel because his aged mother came to live with him in Tucson. Lockheed’s needs and his were congruent. A fortuitous event.
Consultant vs. Contractor or Subcontractor
There is a significant difference in perceptions relating to these words. A contractor or subcontractor is there to be instructed by the client. The consultant is there to instruct the client. The client must understand this difference. If they don’t, we must educate them.
AXXXC Understands the Difference
To be sure there is another factor that has contributed to our success, that factor is AXXXC’s management and our government Project Manager. They both had the good sense to listen to Lockheed Martin’s advice. They recognized Chuck for what he really was: not just another contractor, but an expert consultant. Our client responded appropriately to his “consultant’s” advice.
Our Opportunity with the New Lockheed Martin GSA Schedule
So, how can Lockheed Martin benefit from what we have learned at AXXXC? I believe we must form a “partnership” with XX Inc., the company for which Chuck will work in the future. SI has access to other consultants of Chuck’s stature and reputation. With the rates available for Subject Matter Experts in the new GSA Schedule we have the ability to afford more people with Chuck’s skills and abilities. Those consultants will not work full time at a client site. Rather they will provide initial assessment and start-up direction to be carried out by others. The consultant will keep his or her finger on the pulse of the implementation effort, ensuring success. The consultant will always be available by phone. We will, of course, have to educate our potential clients on the need for this expertise, along with it’s associated cost, but our success at AXXXC will facilitate that education. Lockheed Martin will benefit by providing the non-consulting level labor and enhancing our reputation as the business system implementer of choice.
I’m already working with B C to go to XX, sole source, to acquire Chuck’s services to support TO XX. Our TO XX Task Monitor (M C) will support that sole source request with DITKO (MS). For future non-DEIS XX efforts (DEIS XX rates will not support consultant’s salary requirements), XX has engaged the GSA small business support organization and is in the process of “getting on a GSA Schedule.” GSA is very supportive of XX’s efforts to develop a GSA Schedule. I believe the combination of Lockheed Martin’s ability to access and perform in the large dollar contract arena, combined with XX’s ability to locate and provide expert business systems implementation consulting support provides each organization with the opportunity to seek and win significant amounts of future business. The specific immediate opportunities are DLA and the Army Corps of Engineers.
Lockheed Martin Site Manager
AXXXC, XXX AFB, AZ
Introduction By a Manufacturing Executive
“American manufacturing companies work very hard to adapt or implement any number of new management fads that come in vogue often in three to five year cycles. The reason they are quick to jump in, is usually to fix something that is not right internally which affect the external customer. The primary three “wants” of any customer are 1.) a high-quality item at 2.) a reasonable price and 3.) delivered on time. Focusing on quality and/or cost has proven that on time delivery doesn’t necessarily follow, however, to have a product consistently supplied on time definitely drives quality and will reduce cost.”
“Chuck Diaz has spent many years taking complex products and companies to be better performers by bringing the manufacturing process back to basics. It is amazing how hard some of us work at taking simple tasks and making them complex and confusing. Systems that cause this are often not imposed by the operations or manufacturing group. Usually Accounting, Engineering, Quality, MIS, or even Marketing has more to say in making the product than Manufacturing that has the end responsibility. Chuck taught me some 10 years ago, that in a plant that manufactures a product all operating decisions should be weighed heavier towards operations than any other group. Why? The results will be 1.) a high-quality item at 2.) a consistent cost structure produced 3.) in the shortest time — exactly what the end customer desires.”
“In the year following the implementation of Chuck’s manufacturing philosophy the following happened:
- Cost of sales dropped from over 70% to 55%.
- Overdue orders dropped from an average of $1.5 million to $300,000.
- Inventory dropped from 36% of sales to 29%.
- Sales increased 40% and direct labor dropped 68%.
- While sales increased, the backlog remained constant.
Chuck is a manufacturing consultant I consider the best in the country. He does not offer any theories but instead offers experience proven practical concepts that will ship products on time. My advice to you is listen to him.”
Adel Wiggins Group
Founded in 1925, Wiggins Connectors is a prominent designer and manufacturer of precision fuel and hydraulic subsystems and hardware compatible with these systems. In addition, several complete lines of quick disconnect couplings, fittings and special products are manufactured.
The Wiggins Connectors Division basically serves two individual markets. The predominant of the markets served is the military and commercial aircraft industry. Wiggins’ equipment, either directly produced or through license, is flying on every High-Performance Aircraft in the Free World.
Introduction By a Software Company Executive
I wanted to take this opportunity to acquaint you with Chuck Diaz, a manufacturing consultant with an unmatched capability to solve the problems facing many manufacturers today. Over the past thirty years Chuck has dealt with every conceivable manufacturing environment, from both the operating and systems points of view.
I have worked with Chuck many times over the last ten years and have often sought his advice in building our original Buy Smart! product. Chuck is a doer, he can offer your customers proven approaches to getting the job done, and he doesn’t waste any time with procrastination. If you need the help of an expert and committed implementer, Chuck is the one … he is effective, efficient and fully capable of solving your customers most intractable problems.”
Expert Buying Systems
Located in Vancouver, Washington, Expert Buying Systems was the #1 name in manufacturing systems software selection software. EBS software will match detailed manufacturing requirements to the fuctionality of more than 150 manufacturing systems software vendors.
In October 1997 while under contract to Lockheed Martin, Chuck was awarded an Excellence Award and a cash bonus. The following was written on the award.
“Customer recognized, outstanding performance in achieving implementation of MAXIMO for the users within 90 days. Your ability to facilitate process change and reach agreement for implementation is “Truly Amazing,” as stated by our customer.”
Lockheed Martin Information Support Services
In a special report to the Pentagon and DoD, the Software Engineering Institute of the Carnegie Mellon University had this to say about Chuck Diaz.
“By a fortunate accident, XXXXX were able to use (through their contractors) an individual with many years of deploying MRP II and similar business systems at a variety of sites. This experience has enabled XXXXX to make rapid progress toward full deployment of MRP II. This individual has also provided assistance in integrating a second COTS product (Maximo) with CompassContract to provide further automation support to XXXXX’s business processes. Having an on-site expert in the technology embodied by a COTS product (in this case MRP II) allows a depot to reach solutions to problems quicker and sometimes provides for inventive ways around those problems.”
Software Engineering Institute
Carnegie Mellon University
MRP II Report to DoD
An IBM executive acknowledged Chuck’s involvement in the TransAmerica Wiggin’s recovery in an internal memo sent to all Western Area IBM offices.
“How could they fail? MDE hosted an agenda that included an IBM HQ speaker and the president of TransAmerica Wiggins, who told the audience his company “saved $1.5 million in the first year using “vanilla” MAPICS with the services of Chuck Diaz.”
IBM Western Area Support
Internal Memo, 1988
In 1989 Systems 3X World Magazine published Chuck’s article about implementing MRP.
“Diaz says that “top management commitment becomes a reality when the president or general manager accepts the responsibility for the successful implementation of the business plan.” It’s time to roll up your sleeves, managers.”
Systems 3X World Magazine
In the same year, Chuck was interviewed as a national expert in an article written about a new version of IBM’s MRP II system MAPICS.
“Diaz feels strongly that many manufacturers lost sight of their basic mission when computers came on the scene and that many still operate under a serious misconception.”
Midrange Systems Magazine
In 1983, Chuck designed and implemented the Assembly Floor Control System at the Jerrold Electronics Plant in Nogales Mexico. The system included an inventory module, a purchasing follow-up module, a bill of material module and the assembly floor control module. It was programmed by a corporate programmer and marked a number of firsts. It was the first computer (IBM System 34) to be installed in Nogales. He also developed the method used to have the computer in Mexico communicate with a corporate computer in New Jersey which was not an IBM. The corporate computer was a Burroughs 6000 and was a completely different architecture and the two were not compatible. Screens were developed that allowed active management of the shop floor and daily senior management involvement.
The following comment was made by an executive who was sent by corporate to evaluate Chuck’s system philosophy. He left a believer.
“From the above, it will be noted that some $2,371,000 have been earmarked as a calculated saving, directly resulting from the implementation of Chuck Diaz’s (WIP) concept.”
Rom Van Stolk
Memo to Plant Manager
In 1983 Chuck was sent to Toronto Canada to help a division of the General Instrument Corporation implement their business system.
“Your support in the last six months in implementing Computerized Materials Control Systems here has been invaluable to me. In an environment where it seems difficult sometimes to introduce new methods, your approach has been uniquely effective.”
The following is a typical comment from Chuck’s performance evaluation of the Toronto Canada assignment.
“Innate ability to assess existing manufacturing processes and provide recommended solutions to streamline and control through policies and procedures, exemplified by his leadership…”
Chuck, in his 50 plus years of manufacturing has held positions ranging from material handler to materials manager and president. He has been instrumental in helping many companies achieve their primary goal of shipping a quality product, on time, at a profit. He has been a guest speaker for various manufacturing seminars and has been the guest of many South Korean companies including Samsung and Goldstar, two of the five largest companies in Korea. While Samsung’s guest he visited the Telecommunications Plant located in Kumi, South Korea and while the guest of Goldstar (now LG), he toured the Anyang Plant. During these trips to Korea he has met with many company presidents and managing directors. Chuck has negotiated contracts with top Korean executives on behalf of American companies. One such company located in El Paso, Texas contracted Chuck to obtain a particular joint venture in Korea and within eight weeks they received an offer from Goldstar.
When it comes to manufacturing/materials management, Chuck has established himself as a man who will get the job done, whether it is setting up a new organization or training an existing operation.
Chuck is an expert in his field on a national level and has been quoted and published as such. He is still, however, a “roll your sleeves up and get to work” type manager and has a reputation for “getting it done,” when all else has failed. He is capable of managing an existing operation or implementing a new concept. Key to the success of any materials management operation is the successful use of systems and procedures. Successful use requires education, training, supporting manual systems, procedures and that requires a background in all aspects of materials management. An environment Chuck has spent most of his business life helping define.
Chuck has designed and implemented successful manual and computerized manufacturing management systems for everything from helicopter aircraft and missile production to machine tools and cable television electronics. He has designed systems from the receiving dock through the purchasing and manufacturing cycle to shipping. He is a believer that the only reason business exists is to ship a quality product, ON TIME, at the least cost and make money doing it. He has been fortunate to have a career that included both manufacturing materials management as well as systems analysis at the plant, corporate and executive level.
In 1984 Chuck founded MDE Systems Inc. and in the first 18 months grossed $385,000 in consulting sales as a one-man consulting firm. Before hiring any new employees, Chuck was helping implement MRP systems in 16 companies in the Los Angeles area. By 1987 MDE was under contract with IBM as a national business partner with offices in nine cities across the U.S. and over fifty top level consultants. MDE was eventually purchased by American Canadian Systems and Chuck became the CEO and Chairman of the Board of the publicly traded company. During the same time, Chuck founded and published the highly successful monthly publication, MAPICS the Magazine, which was read in over 20 countries around the world. The magazine was Chuck’s attempt to redefine the definition of who the true “users” of business system software are and for them to understand that the software is a tool to get the job done with, not the job itself.
In 1987 and 1988 Chuck was selected as “Entrepreneur of the Week’ and appeared on national television on the Business Channel. Chuck has established himself as an expert in his field and is known to be the man to call when all else has failed.
In 1997 Chuck founded his last Manufacturing/MRO Consulting company and this year, 2017, it celebrated it’s twentieth year in operation. In that twenty years the company has gone from a one man operation to a staff of over sixty five personnel providing the finest consulting and IT support in the country. Chuck retired in 2008.
This site is dedicated to all the people who, over the decades, have worked for, with and helped Chuck provide the kind of consulting that actually helps a company ship a quality product on time and make money doing so. It is also dedicated to those who helped publish the magazine, they are all listed in each magazine.
Chuck may be contacted at MTMeditor@yahoo.com.