Visual management boards of some kind are now basically the norm in all factories belonging to a multinational group, so they must be effective, right? I'm not so sure. Not that they cannot be useful (they CAN be VERY useful), but, in most cases I have witnessed, these boards just aren't contributing as much to lean initiatives or process improvement as factory management would like them to be. … [Read more...]
How to reduce costs in a factory? The lean approach.
The number one challenge of Chinese suppliers is price, as revealed by a recent survey. Their costs keep rising, but price competition is stronger and stronger. Factory owners spend a lot of time trying to reduce costs. Unfortunately, they tend to focus only on three levers to keep their costs under control: Negotiating down material prices; Limiting salary raises; Pushing the employees to work hard, for long hours. These are actually NOT the main drivers of cost though... … [Read more...]