Lean Production Leads to Increased Value

What is “Lean Production”? 
 
Lean production is a way of thinking; a manufacturing management strategy that emphasizes increasing value while streamlining the production process. If there’s a portion of the process that does not result in value for the customer, that portion is considered to be wasteful. Lean production seeks to cut that waste from the manufacturing process and in so doing, increases the value of the product for the customer.

“Waste not, want not.” 
 
Work from the point of view of your customer. What is important to them? Where do they find value? Common aspects to eliminate from your process usually center on time and quality. How can you reduce or eliminate a waiting period? If you improve your scheduling and ability to predict and anticipate needs, you’ll have a faster response time. If you improve your shipping processes and transportation supply system, you’ll reduce wasteful gaps of time between the time your customer places their order and when they receive your product. 
 
This way of thinking can be extremely effective in improving your profitability and quality reputation. Studies have shown that implementing lean production: 
 
Reduces: 
 
  • Manufacturing lead time: 50%-90% 
  • Floor space requirements: 5%-30% 
  • Work-in-process: 60%-80% 
Increases: 
  • First-pass yields: 50%-100% 
  • Throughput: 40%-80% 
  • Productivity: 75%-125%
Being able to respond quickly to your customer’s needs is a primary element of good service. But lean production also emphasizes keeping your floor inventory low to keep overhead costs down. How can you accomplish both goals? Use metal suppliers that also practice lean production so the entire chain becomes streamlined and fluid. Your supplier should be able to respond to you quickly, sending you product as you order it. In turn, your energies are spent on manufacturing a customized product for your customer; not in maintaining and paying for costly storage floor space or extreme transportation costs.

Domestic suppliers come with fewer unanticipated costs! 
 
In selecting your bevy of suppliers, keep in mind that the lowest quote is not always going to be the most inexpensive option. If you are using off-shore sources there can be a long list of additional costs that won’t be included in the bid quote. Ocean transport and air freight charges can be extremely high and if there is a quality issue that needs attention or remediation, the time and distance can add tens of thousands of dollars in unpredicted charges. A supply chain disruption can cause havoc on the entire line and has even led to company bankruptcy and ruin. Avoid supply chain disruption and production waste. Choose metal suppliers who emphasize lean production and attentive, customizable service. Unique Tool & Manufacturing is an American supply company that can reliably offer you continuous supply availability and quality of product. By using a supplier that uses lean production practices, your final costs more closely resemble the initial quote and the value to your customer increases. In fact, refining your supply chain can result in a greater profit: that’s good news in a time when the manufacturing industry is struggling. For more information or to speak with someone who can help empower your business in today’s manufacturing market, call 1-734-850-1050 or send us a message using the contact form below.
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