BackStreet Lean: Solutions for the Job Shop, Plant Edition

A company can't be all things to all people. Parts that are not making an acceptable profit can be eliminated in order to focus on what the company does best.
To identify components that do not fit the organization's shape or core competencies, and define methods to effectively deal with customers to create a win-win situation when the items are removed from production.
| Critical First Action | Use the same team of people involved with determining core competencies to work on eliminating parts that do not fit. Sales, customer service or top management should be involved with customer relations. |
One week to one year.
Completed part matrix used to identify parts that require a special material holding system
Completed tooling matrix used to identify which parts require special tools to produce the part
Completed machine matrix used to determine which machines are involved in producing the part
Core competency list used to determine if the part fits with the company's core competencies
| Key Terms | Eliminate: Remove, get rid of. Remove items from production that do not fit the organization's core competencies. |
Over time, in an effort to satisfy a key customer, most manufacturers will agree to run a job that does not fit their machinery. They end up struggling to rig something together to allow them to produce the part, but in the final analysis, the job is a disaster. They're late on the delivery, quality is sub-standard, they lose money, and...