The Magic Formula

"A typical OEM assembly plant, for instance, is focused on low-mix, highvolume production. A subcontract precision machine shop, however, normally handles higher-mix, lowervolume production. The diversity and complexity of parts leads to more frequent and complicated setups. So, implementing lean in this situation may require dividing products into part families that are grouped by their quantity, complexity, and production characteristics to identify which ones would benefit most from lean and to determine if lean can be incorporated in the others."


The High-Mix Low Volume