Lean can be an effective way to survive the financial crisis

Lean can be an effective way to survive the financial crisis
It is not many months ago since we all talked about labour shortage. Today reality is much different. Orders are low caused by reduced demand and the reduction of many inventories in the supply chain. There is a huge pressure on cash flow and it will take time before all inventories reach their new level.

Maintain the work pace!
When orders suddenly disappear there will be a surplus of manpower in a company. In such a situation it is important to maintain the work pace. If nothing is done the pace will go down. But why not use the excess capacity to improve the productivity? To be ready for when the wheels start spinning again!

Examples:

• Implement 5S in the production area. Sort tools etc, and define homes for all parts etc. One will be surprised how 5S can improve productivity!
• Make work descriptions to stabilize the work pace and quality.
• Implement Kanban stock control system on the parts that suit Kanban.
• Etc.

By using the excess capacity to make improvements, a company will not only be more competitive during the crisis but also more profitable when the demand goes up again.How many employees should then make e.g. 5S? If the planner can see that the excess capacity on a Tuesday is 25% - then 25% of the employees should make 5S!

By Mikkel Smith
Flexkom – Download Lean tools online >
Website on Scandinavian Lean Courses >