Jun 10, 2011

Blaming lean for closing sausage factories

A food producer and restaurant chain released its financial statement yesterday explaining a couple of items that cut into profits. Here is a quote:

"$2.8 million in restructuring charges [mostly severance payments] related to lean manufacturing productivity initiatives in the food products segment during the second quarter, including the discontinuation of fresh sausage operations at two facilities."

Leaving aside joking about lean sausage and lean manufacturing, it's obvious that lean initiatives in remaining facilities will face more employee resistance. Workers have seen what will happen if their facilities get too productive.

Is this a case of a difference in understanding between the manufacturing function, human resources function, and finance? Or the company's complete lack of understanding of what lean is about?

1 comment:

Mike Wilhelm said...

I guess you'd not expect a sausage company to really understand lean. :)

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