Mass Production – Old Fashioned and Wasteful
You are running a manufacturing business and you have found yourself up to your neck in inventory. Inventory costs you money. It depreciates, takes up space, and you must pay to move it. Inventory looks like an asset on your books however, you know that it is anything but an asset. You are running Mass Production. Everybody else is running Mass Production so maybe that’s the best you can do.
Mass Production focuses on departmental efficiency. Each element in the business produces products as efficiently as possible. The manufacturing metrics are all geared to efficiently produce as much product as possible. If you focus only on your department you may find that you are doing a fantastic job however, the business as a whole may not. You might win the battle but lose the war.
The challenge shows up when you look between the efficient processes. The inventory shows up. Who is caring the cost of that inventory? Lean Business recommends that you investigate Lean Production.
Move Forward From Mass Production
Contact us to have a discussion about Lean Production. Lean Production looks at your manufacturing environment as an organism with connected parts even back to your suppliers. I used the example of a river ecosystem (https://youtu.be/3NCI8YSTFBA) to demonstrate and highlight the differences between Mass Production and Lean Production.
Lean Production enables you to look at your manufacturing environment holistically. Starting with suppliers that ship your supplies just-in-time. Your management team stops looking at the efficiency of a process but looks to the efficiency of the business. You have a mechanism and process to start the effort of ridding your manufacturing environment of problems.
Firstly, Mass Production is overburdened with inventory waste. You cannot wholistically determine where to focus improvement efforts to the greatest benefit. Stop the manufacturing of products without a customer in mind. Move to Lean Production.