Management
Issue No. 5 - April/June 2002
Lean, Mean Manufacturing
Smart manufacturers are implementing lean manufacturing systems to get a competitive edge in their production and marketing.
Lean manufacturing is a proven manufacturing improvement system based on reducing non-value-adding cost/waste and shortening customer order response time. Lean manufacturing systems have a profound positive impact on three key areas for business success:
Reducing waste
Lean manufacturing drastically reduces non-value-adding waste in such areas as changeover times, inventory levels, nonproductive time, waste and defects. Improved flow, flexibility and layout are key elements of lean manufacturing.
Astonishing lean manufacturing results from our own experience with various Adelaide businesses include:
- 60 per cent reduction in changeover times without any capital expenditure;
- Doubling sales while reducing inventory by $2 million;
- 50 per cent reduction in raw materials, liberating $180,000 without reducing order response time; and
- 48 per cent reduction in waste—dollars that go straight to the bottom line.
Lean manufacturing systems dramatically reduce production lead times and improve flexibility, flow and responsiveness to customer orders.
Defect-free product is pulled through the manufacturing system to meet customer orders in a planned and predictable response that will give business a marketable advantage. Businesses are able to offer the customers a quicker, more reliable service.
In these days, when speed means so much in the marketplace, implementing cost-saving lean manufacturing principals which simultaneously reduce customer lead times while enhancing order responsiveness can win you a lot more business. A lovely synergy!
In the case of one Adelaide company competing against overseas rivals, their cost structure was high and the complex made-to-order customer-specified products had a lead time of eight to 10 weeks. Implementing lean manufacturing principles...
