This might explain the functioning and cost of the council under Dougherty.


management

Worker needs a pen

Then: Supervisor gives worker 1 Euro from petty cash. He thus buys on the way to work 1 pen and 1 reserve pen.

Acquisition Duration: 10 minutes. Material Cost: 1 Euro.  Personnel time used: 15 minutes.

Now:  Supervisor writes material request. Acquisition management inquires which colour and brand. General secretariat insists on pens in the Corporate Design.  Controlling insists on efficiency grounds a minimum order value of 100 Euros. Acquisition management contacts department leader as orders over 80 Euros must have his permission.  Department leader authorizes purchase. Acquisition management orders 200 pens.  Internal mail sends pens after arrival to supervisor. Supervisor give pens to worker. Worker uses 2 pens.  The rest dry up and are disposed of.

Acquisition Duration: 10 days. Material Cost: 100 Euros.  Personnel time used: 15 hours.

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