Debunking Manufacturing Myths

The American manufacturing landscape is littered with myths.  Apart from gasping its last breath, American manufacturing is thriving and innovating in ways that are driving a growing economy that is the envy of many a realm.  Myths shackling further growth in this critical sector include:

  1. Customers and competition determine pricing. We have no control.
  2. Standard cost accounting is an appropriate method to understand the cost element of pricing.
  3. Increasing volume increases profit or reduces loss
  4. Price increases cause customer loss and reduced profitability
  5. Business planning is done in the same format as the accounting reports.
  6. Low cost labor prevents us from being competitive with imports.
  7. Quality improvement should focus on the highest $ problem
  8. Lean manufacturing is the best strategy for cost reduction/profit improvement.
  9. Pull systems eliminate forecast error and reduce inventory.
  10. Improved delivery performance requires increased inventory.

Happily, these are all myths.  Want proof? 

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John Layden
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Wisdom . . .

"It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." 

--  Mark Twain