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Component Manufacturing dverti$ dverti $ er
Don’t Forget! You Saw it in the
Adverti$$er
August 2022 #14277 Page #22
Here is What Happens When Continuous Improvement is More than a Slogan
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s a change agent for lean manufacturing best practices, it is extremely satisfying when I see a company embrace best Todd Drummond practices despite their challenges. Too often, it is stated, “we (I) cannot implement or do the suggested improvement practice because _____” from so many claiming to be continuous improvement groups. The excuses are always the same. Too busy, not approved by upper management, or will happen sometime later but later never comes. However, when a company takes the time and makes an effort, no matter the current or unexpected challenges, what a difference! Employee staffing and skills challenge. The same can be stated no matter what region of the country, “not enough people are willing to work, and those that do are no longer as skilled or have good work ethic.” Every company that does not have good management and employee relations suffers the same issues. But as the chart shows, this has a significant impact on a business. Case Study 1 – Good Employee Management Practices. An LBM and component manufacturer (CM) of wood truss and wall panels had the very common problems of high employee turnover, staffing shortages, and low net profits. As part of my services, we spent a lot of time discussing best practices for management and employee best practices because it is the foundation of lean manufacturing. The ideals of best practices for employees have to be more than an empty slogan by upper management. When employee best practices are actually embraced, the results are astounding. Although I must keep this company’s name in confidence, I can tell you their results after adopting the employee best practices I recommended. Their nearly 100% turnover rate within manufacturing and new hires each year dropped by about 30% each year over the last three years. Their turnover rate is very manageable now, and they have virtually eliminated any open positions within the company. Now they are known in their region as a place where people want to work, and they do not have problems filling positions within their company. Production efficiencies and quality of work have improved substantially. They were able to meet the challenges of doubling their sales with virtually no equipment or capital investments. They went from barely profitable to record-breaking profits in line with the rest of the industry. They stated that this was all because they got their management and employee best practices in order. If they had not, the exploding sales would have crushed them. Continuous improvement is not just a slogan within their company. Continued next page
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