The most significant factor allowing manufacturing to compete is the use of Lean manufacturing. Lean is based on the world-class practices of the Toyota Motor Corporation. Lean is comprised reducing waste, reducing costs increasing inventory turns, while increasing throughput.
Lean Manufacturing principles apply for both the repetitive, larger manufacturers, as well as the prototype shop that only produces one of a kind. The Lean Store has primarily focused materials for the small shop – the job shops. For example, BackStreet Lean – Solutions for the Job Shop – Plant Edition was written by John Maachia, Sr., Owner and CEO of Advance Turning & Manufacturing, Inc. in Jackson, Michigan, a plant of about 80+ employees. John, along with 4 other small shops, shared their best practices in this particular book.
The current healthcare system must improve due to the enormous defect rate (estimated at nearly 45% by the New England Journal of Medicine), premium cost escalation, nursing shortages, etc. General Motor Corporation reported that healthcare expenditures equate to $1,525 per car. This cost is more than the steel to make the car! The insult to injury is that a significant portion of the costs related to healthcare services is waste. The national numbers for wastes in healthcare are between 30 and 40%.
The Lean Office has arrived! The 21st century will have businesses competing like never before. This competition will required more streamlined processes throughout all industries and their associated processes. The businesses that survive will embrace the tools comprised within the Lean Office. The Lean Office tools are: value stream mapping, takt time, pitch, Just-In-Time, continuous flow, standard work, runners, cycle time, data collection, document tagging, kanbans, in-process supermarkets, First In First Out, measurements, office layout, office file system, pull systems, visual controls, and last but not least 5S.
