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April 13, 2007

Lean Manufacturing

By Phil Christopherson, Manufacturing-Works

Lean Manufacturing as a management and production tool has taken the manufacturing industry by storm. Companies around the globe have adopted Lean methods in many forms and by many names. Large enterprise companies like Toyota, Dell Computer, and Pratt & Whitney have achieved dramatic reductions in delivery time and lowered inventory levels, while increasing responsiveness to customer demand and improving cash flow.

As evidenced in thousands of organizations, in many different industries, “Lean Enterprise” is one of the most promoted and competitive business models in use today. Published case studies provide example after example of companies that have substantially reduced waste and associated costs. There are countless testimonials describing how companies rose to leaders in their respective industries by becoming “world class” in Lean. There are documented results of compressing order lead-times by more than 80%, reducing work-in-process inventories by 90%, improving quality to a Six Sigma level, and freeing up 60% of resources. And, the successes aren’t limited to only large and well-known organizations—there are also many small company examples.

These Lean concepts and tools are not highly complex, and can be easily learned by people of all levels of education and job responsibility. Lean “tools” include 5S, Value Stream Mapping, and concepts/terms like kaizens and kanbans.  In Wyoming, Manufacturing-Works (www.manufacturing-works.com) has been very active in assisting several companies with their Lean Transformation.  Businesses from Cheyenne to Sheridan and all points between have been adopting Lean manufacturing techniques.  Lean is saving money, increasing productivity for each worker and helping companies make more profits. 

If you are contemplating the implementation of Lean, or new business processes it is important understand one important thing.  Lean initiatives that are successful on a large scale have a strategic reason behind the implementation.  Organizations that are dramatically successful with Lean take a much broader view of processes, stakeholders, and business objectives. A strategic foundation has many components, including principles of development and rules of communication. Tactical thinking says: “are we doing things right?”  Strategic thinking says “are we doing the right things” Development of this roadmap is a dynamic and iterative process, since a business strategy must adapt to changing external pressures, and a framework for Lean must be as agile as a company’s customers, suppliers, and outside influences demand.

Finally, Lean is working for more than just manufacturers.  In recent years some of the biggest implementers of Lean techniques have been hospitals and medical institutions.  Lean principles are universal and apply to any business.  They have their roots in the 1920’s with Henry Ford and in the 1940s and 1950s with Edward Deming.  If you want more information please contact one of the professionals at Manufacturing-Works at www.manufacturing-works.com.

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