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Small Manufacturers Need to be Agile, Not Lean

Workplace organization, quick setup, work standardization, pull systems, error proofing are very much a part of agile manufacturing.

By Rick Bohan, principal, Chagrin River Consulting LLC

Oct. 5, 2010

Much of what is written about lean manufacturing simply isn't applicable to small manufacturers, most of whom make their money by meeting specific service specifications for specific customers.

When lean literature says, "Only make what the customer wants when the customer wants it," small manufacturers say, "That's the central facet of our business. You mean there are companies who make things nobody wants?"

When lean literature talks about training everyone in lean methods and concepts, small manufacturers say, "Everybody around here is already wearing three hats. Who has the time to conduct or attend all this training?"

And when the lean literature talks about . . . well, being lean, small manufacturers say, "We're already lean. Remember that part about everyone already wearing three hats? Maybe big companies have extra people around but we don't."

Traditional Lean Message Lacks Applicability

Don't get me wrong, it's not the small manufacturers have all their problems solved. They suffer from the same operational difficulties that large manufacturers do, maybe more, given that they have fewer resources to devote to sophisticated equipment, IT, and engineering. It's just that the "lean message," at least as it's been translated and communicated over the past several years, has little applicability to the circumstances of small manufacturers.

Small manufacturers (and just about everybody else) have been sold on the idea that lean tools are primarily for cost cutting. So small manufacturers employ lean tools expecting big savings that may not be forthcoming, given that many of them are already practiced at keeping costs as close to the bone as possible. 

The value of lean tools for small manufacturers lie, not so much in their cost cutting potential, as in their potential for creating agility. A company I know has promised several of its largest customers that it will keep a month's worth of the products it needs in the warehouse at all times. In other words, the vendor has promised the customer that it can order a month's worth of any of the products it uses with no lead-time.

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