Many managers, business owners, and business development consultants will tell you that the answer to the growing pains all companies experience are going to cost you a colossal amount of money. They’ll say pricey new software, additional equipment, more employees, or more space is your only option.
As a seasoned lean manufacturing consultant, I would tell you otherwise- business solutions don’t always have to break the bank.
Increasing resources to meet increased demand isn’t your only option when your business experiences growth-related issues or other operational problems unrelated to growth. Increasing capacity, short or long term, by adding staff, working overtime, purchasing additional equipment, and even adding production facilities can be avoided by many companies by simply running more efficiently. But how simple is it?
Lean manufacturing methodology, based on the Toyota Production System, is grounded in eliminating waste. And by waste, I mean inefficiencies. Toyota advises that we fully understand the current condition and find ways to increase capacity without adding resources; the challenge is to find and eliminate the waste that exists in all production processes. And it exists in all production processes.
So, what are some ways to cut costs in business while increasing capacity? Below are three recent examples of how a lean consultant can help you add capacity without increasing resources.
A client already had robotic weld cells that were at the theoretical limit of their capacity. Investigation revealed these work centers were actually less than 50% productive, and there were significant improvements that could be made. Productivity increased to over 90% while cycle times and setup times were dramatically improved. The cost of these improvements was significantly less than the cost to purchase and install additional robotic weld cells to increase output.
Another client was facing significant capacity constraints in their paint department and was planning on adding a fourth paint line. Instead, by applying lean manufacturing principles, we improved the output of the existing lines so much within 3 months that the additional line never needed to be purchased. Also, the oldest of the existing paint lines, which needed expensive repairs and maintenance, was removed completely from other operations. The client avoided investing over one million dollars for the new line and saved several hundred thousand dollars per year in labor and utility costs.
A third client was planning on investing in two robotic weld cells to meet production demand in the steel shop. Basic improvements in production flow, simple fixtures (build in house), and other improvements enabled the company to meet production requirements without overtime and with the same number of team members that would have been required to operate the robots.
Don’t be tempted to add capacity by spending millions of dollars on expensive automation equipment, over time, new employees, or other money wasters. Check out more of our case studies and how we can save you millions by clicking here! Lean manufacturing can benefit businesses in all industries.
Are you looking to get more efficient and profitable? At LJ OKeefe Inc, we learned lean from the source- the experts at the Toyota Supplier Support Center. With a powerful mix of experience and expertise, our consultants assist organizations with complex transformational challenges to get to the next level. We specialize in developing the custom blueprints business owners need to follow to provide long term stability, efficiency, and profitability.
We continue to support clients by developing long term relationships to ensure the systems that we put in place are successful and to support and guide their path to profitability and sustainable growth. You can depend on us to help you through challenges, or help guide you to new levels of growth beyond what you ever thought possible by providing a custom solution tailored to suit your specific needs.
Are you looking for a lean manufacturing consultant? LJ OKeefe Inc is a premiere lean manufacturing consulting firm with over 30 years of experience based in Atlanta, Georgia. Contact us today to discuss your challenges and learn how we can help you stop wasting so much time and money. Or, check out our client's real results, our approach and services, and other helpful lean manufacturing blogs.
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