Lean Built: Manufacturing Freedom

Andrew and Jay talk about building in margin, feeding your interest and curiosity, doing life-giving things, why you might not want to tie up funds in overstock, why technology should never be the bottleneck, and more.Book mentioned: New Manufacturing Challenge: Techniques for Continuous Improvement by Kiyoshi Suzaki.

Jay and Andrew talk leadership development, hiring when you don't need people, utility players vs bench players, where KPIs (key performance indicators) are useful and where they aren't, why the best expeditor is no expeditor, where to place a lathe, and more.Books mentioned:The New Manager's Handbook: 24 Lessons for Mastering Your New Role by Morey Sterner.How to Become a Rainmaker: The Rules for Getting and Keeping Customers and Clients by Jeffrey J. Fox.The Story of the Paratroops by George Weller.

Andrew and Jay discuss some of the lessons from 2023. Topics include the need for lean to be flexible, how lean should align with a company's culture, the importance of intentional lean practices, setting diverse goals for different companies, establishing and executing measurable goals for employees, fostering employee ownership in their respective areas, and delegating tasks to enable more time for creative pursuits.Books mentioned:The 21 Irrefutable Laws of Leadership Workbook 25th Anniversary Edition: Follow Them and People Will Follow You Paperback by John C. Maxwell.Traction: Get a Grip on Your Business by Gino Wickman.

Jay and Andrew discusses Andrew's new company truck (which he bought in the least lean environment possible), how buying ahead to appease short-term tax write-offs can be a long-term bad investment, avoiding long term accounts receivable, cash flow vs cash position, trusting employees with their own credit cards, same day shipping and package tracking, and how prototyping is not necessarily lean.They also begin a conversation on what they want to improve in 2024 as they look back on 2023, which will continue in next episode.

Jay and Andrew talk about Andrew’s forklift and how he’s applying “digital training wheels,” how robots and automation can lead you astray, seeing how pain and expense add up, using AI to make expertise scalable to a wider audience, and much more.

How do you handle a backlog with lean? Andrew gives a little masterclass on that, since he just had to do it, thanks to the holidays and employee sickness. Then Jay talks about why he's thinking about getting a space pod (office pod or silence booth). Plus, they talk about why adding Credit Key was good for Jay, making quality of life improvements at the end of the year instead of hoarding cash, shipping in the holidays, and how to handle Christmas break.

Jay and Andrew talk about Andrew's new forklift, the pros and cons of handling inventory for other shops, tax incentive buys at the end of the year, as-needed budgets, systems vs goals, "use it or lose it" mentality in bigger companies, delaying gratification for wants (but not needs!), and how to avoid being at the mercy of the supply chain.

Andrew and Jay continue to talk about what kind of lathe would Andrew like, as well as false ways of achieving economy, the drawbacks of big sales, seeing where you only partially think of things, the value of high-priced CEO meetings, and more. Books mentioned:How to Sell at Margins Higher Than Your Competitor by Lawrence Steinmetz.Alchemy: The Surprising Power of Ideas That Don't Make Sense by Rory Sutherland.

The discussion dives into the pros and cons of payment plans, highlighting the financial risks tied to rapid depreciation of assets. It contrasts luxury items with everyday goods, revealing their impact on financial stability. The hosts emphasize the value of strong vendor relationships, especially during organizational changes. They also tackle production challenges, advocating for clear communication amidst the complexities of manufacturing. An important question arises: do your ERP systems truly serve your needs in this fast-paced environment?

Should Andrew buy a lathe? This is the question of the hour, leading to all sorts of useful discussions, such as ... do you spend money on a crummy machine just to learn? Or buy your good one first? If you have a machine, will the work come? What happens if getting use out of a machine relies on one rockstar employee? How do you play the odds in a small business? How do you avoid "monkey like shiny" syndrome? What makes a visionary, and why do Jay and Andrew both kind of hate the word? Would either of them ever hire a CEO?