Manufacturers Report Growth in 2002 Despite Economic Downturn According To TBM Survey
DURHAM, N.C.--June 10, 2003--TBM Consulting GroupProductivity Rising, But Resistance To Change Seen As Biggest Barrier
TBM Consulting Group, a leader in time-based management for the manufacturing and service sectors, today announced results of a joint survey conducted with The Manufacturer and MM Maschinenmarkt magazines of U.S., UK and German executives from a cross-section of mid-sized to large manufacturing firms.
The survey revealed that over half of manufacturers in all three countries realized growth in 2002 (U.S. - 66%; UK - 58%; Germany - 52%). Top ranked drivers behind the expansion included:
U.S. UK Germany
New Product Development, Innovation 25% 32% 37%
Productivity Improvements 23% 15% 18%
Responsiveness to Market 20% 25% 6%
Productivity improvements, a key element of growth according to
the study, also increased in a majority of companies in all three
countries (U.S. - 85%; UK - 83%; Germany - 68%). Following were the
top ranked sources of productivity gains:
U.S. UK Germany
Continuous Process Improvement 55% 34% 9%
Work Flow Improvement 14% 22% 9%
Elimination of Waste 14% 9% 12%
When asked to identify the number one deterrent to productivity,
"Resistance to Change" ranked first in all three countries (U.S. -
40%; UK - 31%; and Germany - 25%) by a significantly higher proportion
than even "Affordability/Funding" (U.S. - 14%; UK - 17%; Germany -
19%).
The survey also asked respondents to define productivity with the
following results:
U.S. UK Germany
Value Added Per Employee 27% 42% 72%
Units Per Man-Hour 50% 37% 14%
Sales Per Employee 23% 21% 8%
"The study suggests some significant differences in measuring real
productivity," said Bill Schwartz, Senior Partner at TBM and Managing
Director of TBM's LeanSigma Institute. "'Sales per employee' can be
misleading if a company's product mix is changing or if it is
outsourcing production. 'Units per man-hour' is a good shop floor
benchmark, but is not an enterprise level productivity measure. 'Value
added per employee' is a measure that gauges profit margins after
costs, offering a clearer measure of productivity."
Survey results also uncovered significant differences with respect
to the use of productivity/quality improvement programs. Top ranked
methods include:
U.S. UK Germany
ISO Certification 46% 67% 40%
Lean 72% 50% 6%
"Many German manufacturers are depending on their bias for technology and are relying on high-cost investments rather than people, creativity and continuous improvement," said Mike Herr, Managing Director of European operations for TBM Consulting Group. "Lean culture enables companies to match production to demand - the kind of productivity essential to compete effectively in the global marketplace."
The survey was conducted in April 2003 among manufacturing executives from the United States, United Kingdom and Germany with over 500 responses.
TBM Consulting Group, Inc. is the leading provider of LeanSigma(R) consulting and training services. The company's mission is helping manufacturers and service industry businesses create a competitive advantage to generate significant growth in sales and earnings. The company provides the strategic direction and hands-on implementation to guide clients' cultural and organizational transformation. TBM Consulting Group's proven LeanSigma approach integrates lean principles for responsiveness and Six Sigma's focus on quality. More information about TBM Consulting Group can be found at www.tbmcg.com.