UK manufacturers still have a long way to go

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Manufacturing News, Source : The Manufacturer
Published : 10 Apr 2002 10:07
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By adopting lean manufacturing and performance management techniques, and by competing for superior talent, British companies could improve both their productivity and their financial performance.

And that would enable them to maintain their manufacturing facilities in the UK, according to John Putt, chief operating officer at Jordan’s Grand Prix racing team. Speaking at a one day summit for West Midlands manufacturing companies, Putt, the former head of McKinsey & Company’s Production System Design Centre, urged West Midlands companies not to abandon manufacturing in the UK in search of cheaper overseas production, but to focus on improving productivity in the UK.

In his address, he pointed out that the average UK manufacturing company still had much room for improvement in UK productivity before it needed to consider going abroad to take advantage of cheaper labour.

US companies make better and more widespread use of lean manufacturing techniques than UK companies,” said Putt. “The pay-offs from adopting lean manufacturing can be enormous. Research undertaken by McKinsey has shown that UK manufacturing companies which reassess and redesign their production lines can expect to see a productivity increase of at least 20 per cent as well as positive impacts on other production issues, such as inventory, lead time, quality and capacity.”