Lean manufacturing - slitting

LEAN Manufacturing: What is it?

LEAN Manufacturing value-added

LEAN Manufacturing

LEAN manufacturing has many definitions. Here at Metalwest, we define LEAN as, “The systematic method to identify and eliminate waste by flowing the product at the pull of the customer.”

Let’s look at these underlined elements:

 

 

Systematic Method

Everything in LEAN is a system – a system that can be analyzed, measured, improved upon, and repeated with expected results.

Identify

As humans, we have an innate ability to adapt or work-around obstacles in our environment. You cannot improve something, if you can’t see it. Our managers and supervisors provide observations of our critical processes on the floor. This allows our employees to see their process from a different perspective.

Eliminate Waste

If you can remove waste from your process, you will also remove cost. Waste comes in many forms. At Metalwest, we use the acronym DOWNTIME to remember the most common wastes: Defects, Overproduction, Waiting, Non-Value Added Processing, Transportation (of product), Inventory, Motion (of person), and underutilization of Employee knowledge, skills and abilities. We’ll talk more about these in our next post!

Flowing

Henry Ford wanted to manufacture a car that the everyday person could afford. He understood to achieve this goal, he needed to FLOW the Model ‘T’ through his warehouse in less time. Less time meant less cost and the innovation of the assembly line allowed him to achieve this goal.

Pull

Your customers determine your demand. You should only replenish what your customers are buying (or “PULLING”) out of your store.

In the world of LEAN, most manufacturers will tell you that only 5% of their effort is spent adding value. Value is defined as any activity that changes the form, fit, or function of the product. At Metalwest, we add value when we cut-to-length, level, and slit-to-width carbon and non-ferrous steel. We change the form of the coil to cut, leveled sheet or slit coil. This is where we add value for our customers. It must be done right the first time and the customer must be willing to pay for it; otherwise, it’s one of the eight wastes listed above.

So if 5% of our time is spent cutting, leveling, and slitting, what is the other 95%?

The other 95% is non-value added activities. It’s packaging, loading a truck, invoicing, collecting money, entering sales orders, maintaining our equipment, buying steel, and the list goes on! Clearly, we couldn’t provide our manufacturing services for our customers without these other activities, but it’s important to streamline them as much as possible, reducing costs and increasing speed to market along the way.

Lean manufacturing is a systematic method that helps Metalwest stay focused on value-added activities.

 

Guest Post by Andrea Trevino, director of performance for Metalwest
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June 2019 Insight Guide: Market Indicators

The Federal Reserve hinted they would cut interest rates if the U.S. trade war threatens the decade-long expansion at a summit this week. The U.S. economy will mark 10 years of expansion in July, the longest on record. However, rising trade tensions between the U.S. and China have put a chill on U.S. businesses’ spending and caused a manufacturing slowdown.

Only 75,000 jobs were added in May amid President Trump’s ongoing trade wars. The unemployment rate held steady at 3.6%. This could signal signs that the Federal Reserve will increase rate cuts.

The Architecture Billings Index registered at 50.5 in April, a 2.7-point increase from last month. Any score above 50 indicates an increase in billings.

The May Purchasing Managers Index registered at 52.1%, a decrease of 0.7 points from the previous month. The New Orders Index registered at 52.7%, up 1 point from April. The Production Index registered at 51.3, down 1 point from the previous month.

Hot-rolled coil prices have begun to signal a steel market downturn, with prices reflecting trends not seen since the 2008 global financial crisis. Prices in the U.S. have been falling fast.

Executives at U.S. steelmakers are pushing back against Trump’s abrupt announcement he intends to slap tariffs on Mexican imports, fearing it will cause a stalemate to the new North American free-trade deal. However, Senator Kevin Cramer, a North Dakota Republican, predicted that the Senate would have enough votes to override a presidential veto and keep Trump’s tariffs from going into effect on June 10.

For more information, contact your local sales rep or view the June 2019 Metalwest Market Insight below.

Metalwest Market Insight - June 2019