The Meaning of Lean
By Jim Stavis
There is a movement in
manufacturing today called “Lean”
that seems many of our customers
are embracing. The idea grew out
of techniques utilized by Toyota to
reduce set-up times and convert
batch production methods into
efficient working cells. A growing
number of companies are looking to
increase productivity and reduce
costs in an effort to compete globally
against low-wage manufacturers
in China, Mexico, the Pacific Rim
and elsewhere.
In its simplest form, Lean
manufacturing means eliminating
waste wherever it is found. The goal
is to be highly responsive to
customer needs. If an activity does
not add value to the customer, then
eliminate it. The Toyota production
model defines seven types of waste:
1) Overproduction is producing
more material than is required or
before it is needed. It is excess
inventory sitting on the plant
floor waiting to be utilized.
2) Work in Process (WIP) is
materials between operations
which are made unnecessarily in
large lots of production.
3) Transportation relates to the
excess movement of product
during the production process.
Such movement should be
minimized or eliminated.
4) All unnecessary processing
steps should be eliminated. This
requires a questioning of existing
processing steps.
5) Motion of workers, machines
and transport is wasteful.
Instead automation will improve
the operation.
6) Employee waiting for a
machine to process should be
eliminated. The principle is to
maximize the efficiency of the
worker versus the machine.
7) Manufacturing defective
products is pure waste. The goal is
to prevent the occurrence of
defects instead of repairing defects.
So the question here is how does
the traditional distributor fit into
this brave new Lean world? |
Getting
Lean does not require a cleansing of
customer-vendor relationships. In
fact it should allow customers to
become closer with their
distributors so that the vendor
becomes part of the problemsolving
process. First the vendor
needs to fully understand the goals
and objectives of the customer.
Secondly, the vendor needs to be
creative in offering solutions that
meets the customer’s objectives.
And thirdly, the vendor needs to
perform, perform and perform.
One the most obvious ways a
distributor can add value to
helping a customer get Lean is by
devising a just-in-time inventory
system to eliminate waste. In some
instances the system will eliminate
the need for a purchasing agent,
whereby the vendor automatically
is notified when raw material levels
reach a certain reorder point. We have been able to reduce
customer inventory by shifting
the WIP to our warehouse
instead of theirs. We have been
able to initiate a consignment
inventory program for those
customers that have high volume
requirements. In many cases we
take physical inventories for our
customers to help keep their
inventories under control. All of
these measures are Lean based
concepts. Our motivation to
devise these concepts is to help
our customers and for us to
become a more value-added
supplier. Ask us how we might
be able to bring some of these
concepts into your operation. |
