- 29 August 2005 -
'Lean Thinking' Trims the Fat from Your Operations
by Greg Valero, g.valero@elsevier.com

Lean manufacturing's success in metal finishing supports the view that systematic elimination of wasteful actions will not only produce a high level of throughput with minimum inventory, but is a significant key to profitability. The concept is seen by some job and captive shops as a key survival tool in an industry that has seen its ranks shrink over the past few years due largely to competitive forces, most notably foreign competition.

A lean program can be a key part of a metal finisher's competitiveness and value proposition. Some of these programs are modeled after the lean operating system made famous by the Toyota Production System, where the objective is to reduce cycle time and improve output. While lean takes on many forms—often dictated by each company's size and goals—the objective is to reduce the number of "non-value-added activities" within your operation. Eliminating these actions, lean thinkers say, will go a long way towards squeezing money out of working capital, receivables, and inventory costs, among other things.

Lean principles and techniques are widely known and seemingly simple. There are considerable nuance and subtleness in application and also in tailoring it to industries such as metal finishing. By surfing the Internet, you will come across a number of consultants and sources who offer articles, downloads, and referrals to other resources on lean manufacturing strategy.

But implementing a lean program is easier said than done, however. There is an educational process that uses "lean-thinking" tools such as issue management, error proofing, problem solving, visual management, and quick changeover. It requires managers to be agile so they can drive value at any point within their operations.

Surface finishers may realize the bulk of their savings comes from automation and cycle time reduction through process improvements, resulting in the use of fewer machines and employees to meet production goals. And by implementing a continuous improvement process—otherwise known as "kaizen"—job and captive shops can cut operating costs, reduce time-to-market, or improve the finished product.

There is no question that lean manufacturing is more than just a fad within industry today. There are countless examples of companies that practice many of these concepts every day, which has resulted in changing their corporate culture. As with most systems, lean must be integrated properly and embraced by the staff for it to succeed.

Keep in mind that lean will not allow you to easily win a cost battle against off-shore competition. It has proven to provide companies with a vehicle for passing value to their customers. Companies that subscribe to the concept may not be the lowest-cost producer. But if they can make their "high value" affordable, experts say they stand a better chance of sustaining their business and winning over new customers.