Lean Manufacturing: Boost Pallet Production

Lean manufacturing has become a buzzword. It focuses on producing goods that maximize customer value but minimize waste and production costs. Interestingly, small changes can make applying lean manufacturing principles to pallet production possible.

How Does Lean Work?

You can thank the Toyota Production System for coming up with this concept in the manufacturing sector. There, they broke it down into five steps.

1. Define an efficient production process that minimizes waste.
2. Measure production schedules and customer satisfaction.
3. Analyze improved efficiency.
4. Improve the production line, manufacturing process, and waste reduction.
5. Control continuous improvement of the production process.
   

Various manufacturing sectors have already adopted lean manufacturing concepts and integrated them into their processes. It is time to begin applying lean manufacturing principles in pallet production, too.

What is Waste in the Palette Production Process?

When you think through the manufacturing process, eliminating waste is not that difficult.

Look at Production Methods

Eliminate any method that jeopardizes excellent production and contributes to defects. You may realize that problematic products come from cost-cutting measures in raw material purchases. While it may have saved money at the time, it now adds production time because you have to redo products.

Evaluate Production Policies

Do you wait to produce until a customer puts in an order? Or do you create an inventory that tends to take up space because it does not move as quickly as you had anticipated? Lean manufacturing considers making products that a customer has yet to order wasteful. Selling pallets that have been sitting in your warehouse for a while does contribute greatly to your bottom line.

Consider Production Delays

What hinders your production? Do you lack a sufficient inventory of raw materials? Are your machines breaking down, and you have to wait to receive parts to fix them or new machines? Do you have to move things around to get to other things you need for production? Applying lean manufacturing principles in pallet production here calls for eliminating waste. Consider strongly streamlining the manufacturing process through inventory control and employee training.

Move from Pushing to Pulling

In manufacturing, a push system refers to an inventory buildup based on forecasts. Last year, you sold x number of pallets, so you will need the same amount this year. Frequently, this system results in overproduction, which costs money, and bulky inventory, which takes up space. Transforming the production into a pull system means inventory control based on actual material needs. Moreover, pallet production occurs only after a customer order is received. It takes a little getting used to because it likely upends your work practices.

Review Your Workstations, Equipment, and Procedures

Ask your employees why they do their jobs the way they do them. If they answer that it is because they have always done it this way, it is time to improve productivity.

1. Workstation design. Workers need to maximize productivity while minimizing the time they spend on manufacturing. If your workstation design does not support this level of productivity, it is time to redesign, move, or eliminate them.
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2. Equipment. Check out the equipment you currently use. Is it well-maintained, and does it do the job you want it to do? Has newer technology surpassed the efficiency of your equipment? Anything that costs time because it does not perform as expected may need to be replaced.
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3. Standards and protocols. Break down the manufacturing process into workable chunks. Next, develop standards or protocols for each step. These standards reduce wasted time and resources. They also inform your scheduling because you have a good understanding of how long it should take to make a palette in your current setting with the machines you have. Next, train your employees in these standards.
   

It is interesting to note that you may get some pushback from your workforce. They have established a way to do things, and you are now likely upending what they know to work best for them. It is integral to get your workers on board with the new ways of doing things. Many businesses add employee communication and listening sessions to their changeover to lean manufacturing. In fact, your workers may have some input that could go farther than what you had initially envisioned.

How Minimizing Waste Saves You Money

Reducing waste is the heart of reducing costs. Waste becomes obvious when you consider your palette production with a lean manufacturing mindset.

Increase Productivity Through Efficiency

By streamlining effectiveness to increase productivity, you use fewer resources and need less time. By fulfilling customer orders faster, you can now take on more projects, which in turn brings in more money.

Reduce Costs by Getting Rid of Activities and Products That Fail to Add Value to Manufacturing

If it does not align with your lean manufacturing goals, it is working against them. Examples include outdated machines, unnecessary inventory that gradually becomes obsolete, and workers who lack standards for performing their tasks efficiently.

Boost Flexibility with Pull Adherence

There is a lot of talk about supply chain insecurities, agility, and scalability. Lean manufacturing gives you the flexibility you need to deal with breakdowns anywhere in the system. Adapt your operations according to changing marketplaces and consumer needs. There are no wasted raw materials and unneeded inventories.

How are You Using Software?

Software is your best friend when improving your bottom line, adding activities to worker standards, and transporting inventory. You likely need real-time inventory and supply tracking, staffing, and workstation efficiency. Anything that takes extra time is contrary to applying lean manufacturing principles in pallet production. Many manufacturers make mistakes because they still rely on outdated software or manual tracking systems that are not part of a real-time setup.

Improvement Continues You Never Arrive at Perfection

Companies have adopted lean manufacturing because it presents itself as something other than a new system in a box. You have had those before. They must be updated and no longer apply to customer needs and the availability of raw materials. Instead, the lean method is an ongoing process.

Once you commit to it, it affects all aspects of your production and manufacturing tasks. The goal is improvement. Just when you think everything is humming along nicely, there are most likely supply chain changes and updates to customer behavior. Rather than having to adhere to a now outdated system, you can go back and reduce waste all over again.

Moreover, you can make changes anytime because lean manufacturing lets you ease into the process. You are never locked into a way of doing business because a manual says so. Rather, you adapt the idea of lean manufacturing to your shop's unique setup and need. What could this look like at your business?

1. Define key performance indicators. Performance indicators are crucial for measuring operation efficiency. Depending on your shop's setup, these indicators likely include output and production time. Once you define these indicators, track them and any changes you make. By the way, if you use other indicators, do not be shy about adding them. Each business has unique performance indicators that will set it apart from other companies.
2. Shake things up. For some manufacturers, the warehouse or production station setup involves time waste. This is particularly true for companies that started small but have grown since then. You may be trying to increase productivity in a shop set up for smaller production runs. It may be necessary to move things around or out of the space to give you the room to be as productive as you need to be.‍
3. Rethink your inventory setup. Inventory refers to raw materials and spare parts for machines. If you have previously worked by forecasts rather than real-time needs, you most likely have a large product and raw material inventory. Changing to a pull system means getting rid of these inventories. It will not happen overnight, but it is critical that you do not keep adding to them.
   

Working With Business Insiders on Making Big Changes

From pallet business marketing budgets to building a new pallet company website from scratch, our team works with manufacturers like you. If "lean anything" is used to fill you with anxiety, we want to help. Because we realize that lean manufacturing is the future of the pallet-making industry, we are positioning ourselves at the forefront of this trend.

Whether you need pallet company SEO services, help in reducing waste, improving profitability, or adapting your processes to lean manufacturing, we can help. Do not go it alone; connect with our team today!