Posts Tagged ‘inventory management’

Lean thinking: Quality first, delivery second, price third

December 5th, 2011
By: Tim Heston

This week I’m at LeanFAB, a Charlotte, N.C., lean manufacturing conference organized by the Fabricators & Manufacturers Association. When I pulled into the hotel parking lot this evening, I noticed a truck hauling equipment with a familiar logo: Vermeer, a Pella, Iowa, construction equipment manufacturer The FABRICATOR covered several years ago. The company’s CEO, Mary Andringa Vermeer, is chair of the board of the National Association of Manufacturers and for years has been a vocal lean champion.

Tomorrow’s agenda at LeanFAB includes a plant tour of a local metal service center as well as several sessions on lean manufacturing’s effect on supplier relationships. Managing those supplier relationships, some manufacturing managers seem to be putting quick delivery before price. As just one example, Lynn Benishek, materials manager at Milwaukee, Wis.-based Phoenix Products, told me the company rates suppliers on quality first, delivery second, and price third. If a supplier offers Benishek a quantity discount, she usually doesn’t take it unless she knows Phoenix can use that excess inventory immediately. Instead, Benishek prefers to use (when possible) local suppliers that can deliver quality products in small quantities at a moment’s notice.
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Earthquakes, job shops, and the global supply chain

March 21st, 2011
By: Tim Heston

With Japan in crisis, so are global supply chains. With the world’s third-largest economy basically in standby mode, manufacturers stateside--and around the world--are scrambling to adapt.

Most metal fabricators aren’t assemblers sitting at the end of a long global supply chain, but many of their customers are. Disasters like last week’s earthquake reveal the uncertainties of long supply chains, and for fabricators it also brings up the question of inventory: How much is enough? Lowering inventory frees up cash. But knowing all the uncertainties of a global economy, how “on edge” should a shop operate?

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