Issue link: http://www.insightdigital.biz/i/385615
w w w.in s i g h t o n m f g . c o m September 2014 • /INSIGHT ON MANUFACTURING | 25 high-tech vs. industrial equipment? A. e principles are pretty much the same, but QRM really focuses on low volume, high mix and custom productions. So if you're an automotive supplier and you're making a million spark plugs or something, then you don't need the QRM methods. But if you're really doing a low volume/high mix, like (Mountain-based) Nicolet Plastics is doing, then QRM does work. We have companies that make small plastic parts all the way up to those that make oil drilling equipment, huge rigs that are on offshore platforms – and anything in between. Q. Why is it more important now for American companies to make this shi to QRM practices? A. First of all, the world is changing. Everybody wants an individualized product. e second is if you look at competition from low-cost countries that have low labor costs, we have a huge advantage because there are three to six months of lead time in shipping products from those countries. If I could make a custom pump in a few weeks, then I've really got a competitive edge. e last thing is, it turns out that labor costs are only 5 to 7 percent of what a customer pays for when they buy a product. Let's say you're a manufacturer and you pay $1,000 for an aircra component – chances are only $50 went to some guy on the shop floor who was doing the machining. A lot of that other $950 is related to lead time. Q. What do you hope to convey to New North companies at the Manufacturing First conference? A. Companies here in the Midwest that have really truly adopted a mindset change and have said "Yes, we're going to find a new way of running a business," have achieved some truly amazing results. We're not talking about 5 or 10 percent. Companies in the Midwest, other small- and medium-sized companies have achieved some pretty amazing results, and what it requires is a willingness to step back and open your mind to new ways of thinking about how to run your manufacturing business. Reprinted from the September 2014 issue of Insight Magazine. QRM experts to present at Manufacturing First Rajan Suri, emeritus professor of Industrial Engineering at UW- Madison, along with Nicolet Plastics President Bob MacIntosh, will present a breakout session at the Manufacturing First Expo & Conference. The details: "Quick Response Manufacturing" » 11 a.m. Oct. 22 » KI Center, Green Bay » Tickets: $90 for the all-day event » www.manufacturingfirst.com