Monthly Archives: February 2010

Is Overtime “Lean Manufacturing”?

By Lloyd Graff

Is paying overtime rather than bringing in new employees lean manufacturing practice?

For adherents to lean concepts, the question of how to handle a  “bullwhip” effect where companies need to rebuild inventories is a challenge for suppliers. (All this “bullwhip” talk is making me hum the theme song from “Rawhide.” See clip below.) People who were laid off may be unavailable for a call back or may be happily pruned. Overtime is expensive, and eventually core workers get burned out working six or seven days a week or 12 hour shifts.

Temps are often an imperfect answer because they require significant training and may be poorly integrated into a group of standoffish employees who are offended that old employees are not being rehired.

As contract shops reach the “bullwhip” phase of inventory rebuild, how do you think workforce additions should be handled?

Question: Would the Obama $5000 tax credit proposal for new employees be enough to tip you into hiring new people?

Theme Song from the TV Show “Rawhide”

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Is Lean Manufacturing to Blame for Toyota’s Woes?

Toyota's Faulty Floor Mat Retention System

By Lloyd Graff

Toyota, the icon of lean manufacturing, now has a big fat problem that could devalue the brands which vaulted it to the top selling car company in the world.

The sticky gas pedal that has prompted the recall of Toyotas and Lexus going back to 2005 has been traced back to a bad design in a component made by CTS, an Indiana auto parts supplier. Because Toyota was so committed to lean manufacturing, which translated into common components across platforms and models, the company has to callback the RAV4 SUV, Avalon, Corolla, the top of the line Lexus and the ubiquitous Camry.

Besides being a tort lawyer’s buffet, this debacle besmirches the reputation of Toyota, because the problem must have been recognized in the field years ago, yet was never fully acknowledged until now by the corporation.

This is a tremendous opportunity for Ford, GM and Honda to attack Toyota. Toyota is suffering because of the dark side of lean manufacturing which corrupted virtually every one of its major models from the last five years. Toyota’s reputation will also take a blow just for the fact that it refused to come clean about the problem for years in a marketplace that increasingly demands transparency.

Question: Do you think Toyota’s commitment to lean manufacturing was a significant contributor to its current crisis?

Imagine, this goof is from a company that can develop a thought-controlled wheelchair.

Toyota’s Thought-controlled Wheelchair

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