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Helping U.S. mfrs. battle back

By Powell Slaughter -- Furniture Today, February 3, 2002

Rather than worry about what others are doing, U.S. manufacturers can do a better job tending their own house, according to Lee Houston, a consultant and former manufacturing executive with Ladd.

Smaller runs of product, made more efficiently and delivered to customers on a timely basis, are the key to U.S. competitiveness, he said.

Houston worked in China in the startup of a 500,000-square-foot plant. After examining the plant's cost sheets, he was convinced that U.S. manufacturers can compete through "lean" manufacturing.

Lean manufacturing involves the elimination of waste not just on the plant floor but throughout the enterprise. Houston and Bob Edwards, a retired professor and industrial extension specialist at North Carolina State University, held a seminar on the topic here last month. Twenty furniture manufacturers attended the event, which will repeat here on March 13.

"There are a couple of things to remember," Houston said. "First is that we are manufacturers — we're members of the American Furniture Manufacturers Assn., and we forget that."

Houston said that 92% of the presidents of furniture companies come out of sales, and that can lead to a disconnect with the production team.

"Often, the designer designs a piece without ever talking to anyone on the manufacturing side," Houston said. "Why, if you have to make it, aren't you involved in the design phase? Part of lean manufacturing in being involved in every single phase of your business."

The second issue is to involve the entire company. Houston said that the floor workers have the most knowledge of production bottlenecks but have too little involvement in decisions made at the top.

"Lean manufacturing is about getting people involved in what they do and learning what they do. Lean manufacturing is about getting that knowledge of manufacturing problems from the workers to the executive level," he said.

A key to lean manufacturing is the "blitz" — a focused effort to solve a production problem and institute a change in behavior and process to solve it in days, not months. The blitz also means bringing in outsiders to examine a problem with fresh eyes.

Edwards said the process engenders new behaviors and generates fast results that encourage buy-in.

"With the blitz, you take a small team out on the floor and get some immediate results," he said. "The blitz forces change."

To start a blitz, assess the operations and select a process problem. "Don't look at documentation. Go out on the floor and look at what is happening today, and implement changes before the event ends," Edwards said.

The team should consist of process experts (company engineers, production personnel and executives) and process novices, or outsiders, to question everything about the process.

"The goal is improvement, not perfection," Edwards said. "Three or four days are adequate to get improvement."

The blitz removes non-value added activity, such as moving parts from bin to bin. It works in an office situation as well.

"Any piece of paper is inventory in an office, and any paperwork that does not solve a problem is waste," Edwards said. "You're forced to do no-value-added stuff by the EEOC, IRS, etc., but anything else (non value-added), get rid of it."

Through a series of blitzes, manufacturers can get lean.

"Your marketing opportunity in furniture is to sell more product at a higher price by getting the customer what she wants quicker than anyone else can do it," Edwards said.

"Your long-term goal is to build one item very quickly, ship it and make money doing it. Some smart people will tell you that you probably can't do that. Make the reasons for not changing go away. Lead time is a waste of time."

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