Assembly Planbook - March 2009 - (Page 44) ASSEMBLY Planbook How to Improve Your Line in ’09 Tough times call for new ways to operate. A ccording to most forecasts, 2009 is shaping up to be one of the most difficult years that manufacturers have faced in the last seven decades. To survive and thrive in this challenging economy, engineers must renew their efforts to reduce production costs, increase productivity, shorten time to market and improve product quality. Today, many assembly lines are running much slower than in the past. Photo courtesy Brose North America Inc. By Austin Weber Senior Editor The downturn in the economy hit manufacturers hard and fast, like a summer squall on Lake Michigan. For instance, consider the case of Caterpillar Inc. (Peoria, IL), which was flying high just a few months ago. In 2008, the company experienced its sixth consecutive year of record sales and revenues. “Through the first three quarters, we experienced booming demand . . .,” explains Jim Owens, Cat’s chairman and CEO. “Delivery times for many products were extended, and we were focused on increasing production and expediting shipments to meet customer needs. Then we were whipsawed in the fourth quarter as key industries were hit by a rapidly deteriorating global economy . . . .” Other people use less-colorful words than “whipsawed” to label what’s been happening lately. No matter what language you choose to describe current business conditions, it all translates into the same sobering message: We’re in the midst of a severe recession. Even manufacturers that have relentlessly practiced lean principles or Six Sigma for years can’t control some of the oncein-a-century issues that are rocking the economy. “Everything has changed,” says Kevin Duggan, principal of Duggan Associates and founder of the Institute for Operational Excellence (North Kingstown, RI). “The business climate that we once knew is gone, and high uncertainty surrounds us. The challenges are different, and our typical cost-cutting measures don’t come close to matching the drop in customer demand.” To survive and thrive in today’s chaotic and volatile market, Duggan believes manufacturers have to use a football strategy: First establish a good defense and then turn up the offense. “Just as families are reining in spending to stay afloat, manufacturers, too, are cutting back on everything but 44 ASSEMBLY / March 2009 www.assemblymag.com http://www.assemblymag.com
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