Industrial |
 The Industrial Manifesto!
Seeing the Big Picture.What most companies' overlook when implementing lean practices, 5S, kan-bans, etc. is the reason they are in business in the first place - to sell their product or service. Instead of micromanaging the bottom line and 'nickel and diming' their employees, companies should be placing an emphasis on providing the customer what they need, and that is the product and/or service on time, the highest quality, and lowest price possible. The needs of the customer should be fulfilled whenever it makes economic sense to do so. Another overlooked area in the 'new' global economy is how Toyota does business. Many companies look to Toyota as the model for lean manufacturing, but they fail to see the big picture when it comes to this industrial giant. One thing that is often overlooked is the fact that Toyota produces on a large scale. The number of cars that it produces is staggering, and this implements the economy of scale whereby the larger the quantity is produced, the lower the cost to produce it, and the lower the cost to the end-user. Another overlooked aspect of Toyota's business is its dealership network. A drive by any Toyota dealership will show that there are hundreds of vehicles sitting idle, not exactly a one-piece workflow where for each product sold one is made. Another overlooked aspect of the business is the fact that the actual number of options available per vehicle is limited. As I once told a member of management where I am employed, "You can't walk into a Toyota dealership and order a car with 351 Cleveland motor mounts." The final overlooked piece of the Toyota puzzle is manufacturing of the parts. Does Toyota start with the raw materials at one end of the stream and a finish product come out the other? No. For the most part, a Toyota assembly line is just that - an assembly line. Components are outsourced or made by other Toyota facilities and shipped to the assembly line. So, the customer has limited choices, is more likely to buy a vehicle off a dealership than to 'special' order it, and Toyota produces on the grand scale, which increases profits and lowers the cost to the consumer. How many companies could do this? Not many. Then why is Toyota the 'model' of lean? Logistics. Call it by any other name you wish, but it still boils down to logistics - having what's needed where it's needed when it's needed. For this reason, Wal-Mart is number one on the Fortune 500, and for this reason Toyota is a world-class organization - not a one-piece workflow or lean, but logistics. Logistics are the real key to dominating the industrial world. If a company can produce its product and get it where it is needed when it is needed, they will crush the competition and make all the stakeholders happy.
We are the visionaries who look to change the future. We are those who are brave enough to venture into this new frontier. We are the revolutionaries who will bring about this change. The time to act is now. The need for change is now. The Revolution begins now.
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