by Ty Haines

This past year’s economy has been tough on many manufacturers. At an open meeting of the Manufacturing Innovation for the Next Decade (MIND) group in November, companies reported on strategies that have kept them in business and positioned for growth, including

1. Building bench strength
2. Decreasing operating costs
3. Preventing and promoting

Build Strength
As companies found it necessary to reduce their work force, marginal performers were not the only employees laid off. Sometimes key positions were eliminated. This places stress on an entire organization to adapt. Companies that focused on keeping the workers with the capacity to learn and a positive attitude were the most success at adapting. Cross training to re-establish redundancies was required as much as the need for most people to perform more than one function. "Be flexible or be gone" became the attitude adopted by individual employees as well as the company itself.

Decrease Costs
Lean implementation has become even more critical in these trying times. Versatile work cells with faster set up capabilities has either reduced costs or allowed cost standards to be met with fewer people. One company got rid of no-value material moves so that when a part is touched it does not go into a storage bin until it is finished (one-piece flow ideas). Other companies considered their waste stream as wasted resources and saved money by eliminating or reducing waste and the labor it takes to deal with the waste (sustainability and green outcomes were also recognized).

One company switched to a cost of living increase with gainsharing as a result of the last recessionary period. That move made them better prepared for this current downturn.

Prevention and Promotion
WIRE-Net’s 2009 focus on Driving Sales Up showed up in action at companies as they stepped up their promotion and selling efforts first with their current customers and then with potential new customers in a new market area. One company invested time in the prevention of errors – work instruction, traveler and set up aids that make it harder to waste time and materials.

Business owners, Presidents, and CEOs reported these approaches in the peer-to-peer setting of MIND. These leaders look to do what they can to preserve their company and best people... they also look to learn more of what is working best at other area companies. WIRE-Net is evaluating an innovative refocus for its MIND group in 2010: development of new and proprietary products for classic contract manufacturers. Want to learn more about the any of the above strategies, the new MIND program, or supply chain entry into the 2010 Emerging Markets? Call Ty Haines at 216.588.1440 ext. 106.