When in manufacturing, learn what the Japanese do, then do it better

By Tom Taetsch

Throughout the U.S., the greatest obstacle for Operational and Human Resource professionals hit while trying to improve their labor management is a resistance to change. The pressure to succeed makes companies less open to taking risks and trying new techniques. Yet, businesses have to make modifications to keep up with a shifting national and global economy.

Across the world, Japanese companies have gained traction as the global leaders in manufacturing.  This is a result of their history in creating sustainable labor practices and implementing a cost-per-unit (CPU) based labor model. So, what makes the CPU labor model so compelling and effective?

After World War II ended, American statistician, Dr. W. Edwards Deming, would visit an economically devastated Japan during his work at the USDA. He became fond of the culture and people and eventually influenced a group of top Japanese managers who were eager for new ideas to improve quality.  His approach was based on statistical analysis centered on 14 points for management.  Demings is also credited with devising and implementing some of the most influential concepts in today’s manufacturing industry, such asTotal Productive Maintenance (TPM) and Plan, Do, Check, Act.  Beyond Deming’s body of work, other manufacturing concepts originated through Japanese industry like Lean Manufacturing or TPS (Toyota Production System) and 5S Methodology.

The Japanese began to and still set the standard for sustainable production practices.  It is through consistent and automated implementation of these same practices that one workforce management company, nGROUP performance partners, has developed a highly effective CPU model for the American culture and business environment, and is able to achieve significant results for their partner companies.

nGROUP developed an integrated approach of converting traditional hourly rate workforces into a fixed cost per unit (CPU) arrangements, and helps clients budget labor cost more effectively, enhances stagnated quality programs, and integrates value stream mapping philosophies.  Through a commitment to lean manufacturing and Six Sigma philosophies, plus innovative human performance coaching, the nGROUP model guarantees clients positive financial and performance results, and a positive change in the production culture.

For more information on nGROUP performance partners visit www.ngroup.biz

Tom Taetsch, nGROUP Vice President,  has 25 years of supply chain experience, including 11 years of recreational vehicle manufacturing experience with Yamaha Motor Manufacturing Corp of America.  His logistical and engineering workload has embodied Supply Chain consulting for Tompkins International and within the 3PL industry, working for companies such as Exel, Saddle Creek, and Weber Logistics.