Lean Manufacturing and Safety Help Manufacturers Survive Tough Times

December 13, 2010    

With manufacturers across the country looking to save costs in every place possible, it’s no wonder that lean manufacturing and safety have become the cornerstone of financially responsible business practices. Saving thousands on inventory, resources and workers’ compensation claims, these programs have aided many companies in surviving the recession. The 2010 Compensation Data Manufacturing survey results found that 69.7 percent of manufacturing companies utilize lean manufacturing practices.  

Of the various lean manufacturing practices used, 5S programs were most prevalent at 69.2 percent. This was followed by Six Sigma and Kaizen at 58.6 percent and 55.7 percent, respectively. Value Stream mapping was used by 47.3 percent of manufacturers. Survey respondents employed Kanban at a rate of 40.6 percent. Takt Time Analysis was used the least, 22.1 percent. 

“By implementing lean manufacturing practices, companies gain the potential to save thousands while increasing their bottom lines,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. “Keeping production and quality levels high, while minimizing waste, will be the key to remaining competitive as the economic climate improves.”

Many manufacturers have also found value in obtaining ISO 9000 certification. To gain certification, companies must follow procedures established by the International Standards Organization to ensure quality products. According to the results, 56.4 percent of organizations have obtained ISO 9000 certification. Of those who have obtained certification, durable goods companies reported the largest percentage, 67.5 percent. This was followed by non-durable goods manufacturers at 46.2 percent.

Promoting safety is still a key cost saving element as 50.5 percent of organizations offer gift certificates, rewards or merchandise as an incentive. Safety awards or certificates are employed by 44.7 percent of manufacturers. Survey respondents reported using bonuses to promote safety at a rate of 27.1 percent. Safety bingo is used by 8 percent of companies.  

About the Survey
Compensation Data 2010 Manufacturing contains data on over 100 industry-specific job titles and more than 300 benchmark titles ranging from entry-level to top executives. Data was collected from nearly 1,100 manufacturing employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2010.

Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988.  For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.

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