Tuesday, August 4, 2009

Lean Manufacturing: Getting Ready for the New Economy

While it seems that, to many people the economy keeps getting worse, there will be a day that things will turn around. Being prepared for that turn-around can mean the difference between success and failure in the new economy.

Incorporating lean manufacturing practices into your processes is just one way to be prepared. Wikipedia defines lean manufacturing as “a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.” Now is the perfect time to look into adopting these practices when business is currently slow.

Lean manufacturing encompasses understanding the seven wastes, which originated in Japan (also known as “muda”). Toyota originally developed this idea and thus lean manufacturing was born.

If you are unfamiliar with them, the seven wastes consist of:

1. Overproduction: Manufacturing an item before it is needed
2. Waiting: Whenever products are not moving or being processed
3. Transporting: Moving product between processes
4. Inappropriate Processing: Using the wrong tool for the job
5. Unnecessary Inventory: Clutter in the work areas
6. Unnecessary / Excess Motion: Unnecessary motions of bending, stretching, etc.
7. Defects: Quality defects that result in rework or scrap

The Sioux City Journal recently reported that the company Pure Fishing is “gearing the company for growth with leaner operations”. According to the article, Pure Fishing CEO John T. Doerr said the efforts are “focusing on preparing the Penn manufacturing operation for an efficient rebound when the economy and the demand for higher-end products pick up.”

This is a good lesson for all manufacturers – take advantage of the slower times now to come out on top when the economy rebounds. It may seem like it’s a long way off, but the companies that will be successful will be ready and waiting for it, rather than those that end up being left behind.

Read the full lean manufacturing article about Pure Fishing.

Learn more about technology that can help you in your lean manufacturing efforts.

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