Reprint: R1404J
Manufacturers in developed countries can no longer rely on lean management practices to stay profitable. They face increasing competition from plants in large emerging economies that are able to produce on a large scale at a lower cost, while still providing high quality. The way forward, the authors suggest, can be glimpsed from analyzing past winners of Europe’s annual Industrial Excellence Award. Those companies have succeeded by using one or more of these strategies:
Germany’s Schmitz Cargobull, for example, has become a leading trailer manufacturer by using sophisticated information technology to help customers monitor their vehicles.
One example is Markem-Imaje, a maker of industrial printers for coding products; the company adds value for customers by offering a variety of ancillary services.
A prime example is ASML, which works closely with customers and suppliers to make innovations in production technology for the semiconductor industry.
Focusing on small runs of custom-designed products has been an effective strategy for companies like BuS Elektronik and the Daimler Group’s Smart car division.
Until about a decade ago, the best way to make your manufacturing operations competitive was to apply the practices of lean management. But as those practices have become more universal, they are yielding less differentiation in cost and quality.
