Resource of the Month: Becoming Lean and Mean

Between January 2008 and November 2012, 203 NH manufacturers created 435 jobs, retained 788 jobs, increased and retained $337.5 million in sales, spent $80.3 million on new investment and realized $35.3 million in cost savings. How, you ask?

These were all companies that worked with the NH Manufacturing Extension Partnership (NH MEP) to make their businesses more efficient and productive by eliminating waste in all facets of their operations.

This state government agency helps NH manufacturers improve productivity and position themselves for growth by assisting with training on lean manufacturing, quality management system, supply chain management development, and other best practices.

New Hampshire manufacturers want to be more proactive and need to develop short and long-term strategies for growth. In order to do that, they must improve productivity and efficiency, encourage creativity and innovation for new products and services, and constantly benchmark and adapt their business models to the ever-changing market demands, says NH MEP Director Zenagui Brahim.

NH MEP also helps with workforce development. In partnership with the Department of Education and NH Division of Economic Development, it launched the Regional Education/Manufacturing Networks, which connects manufacturers and educators to discuss ideas for creating the next generation of skilled workforce in advanced manufacturing.

Brahim says that lean manufacturing offers a systematic approach to identifying and eliminating waste (non-value-added activities). Our approach is to help our clients learn by doing. We train the teams and coach them through the implementation of their lean initiative, he says. The objectives of the lean initiative, among other things, are to reduce lead times, work-in-process, improve quality and productivity, and reduce floor space, and improve team work.

Brahim says that as the economy improves, NH manufacturers are slowly getting out of the wait and see mode and starting to grow and invest in infrastructure. NH MEP is helping companies with that growth. They are doing so in part through Systematic Layout Planning (SLP), which Brahim says is recognized worldwide as the most organized and effective way to develop layout plans.

We train our clients on SLP. This is a team-based systematic process that uses actual data to determine the most effective and efficient layout possible, Brahim says. "The process is essential for those companies who must add major equipment or capacity, re-arrange for better material flow and throughput, expand or consolidate facilities ... implement new warehousing methods, processes, and systems, or re-arrange teams or more effective office communications.