Single factory, multi-locations
By Staff -- Modern Materials Handling, 7/1/1999
A face, is a face, is a face. Basically, they have the same needs all over the world, according to Michael Miller, Gillette's division manager in charge of planning and logistics for the South Boston Manufacturing Center (see related story p. 48)."The compelling reason why a person in the U.S. would buy a Mach3 (razor) product is the same reason a person in London, or New Delhi, Brazil, or Tokyo would buy it," says Miller. As a result, Gillette markets the same products all over the world.
This single product concept is the basis for Gillette's manufacturing philosophy of "single factory, multi-locations." Miller explains how it works.
"We look at it as one big factory; it just happens that we have some machinery here (in South Boston), some machinery in Berlin, some in England and in Brazil. All are making the same product. So when we plan, execute, and do the engineering designs or talk about quality issues, all these factories talk like they are one factory, they just happen to have staffs in different locations."
Miller says that flexibility is a by-product of the concept, as products can be sent anywhere. Often, distribution centers may not even know where their product is coming from. The only difference may be in the way it is packaged for various markets.
The same flexibility extends to Gillette's overall corporate planning. The company can pull a factory completely off-line for preventive maintenance or re-tooling and ask another factory to increase throughput and make up the difference.
Innovations in the manufacturing operations are also shared worldwide. Whenever ideas surface for creating products of higher quality or lower cost, the benefits and impact on operations are discussed with managers and engineers at all locations. Decisions based on their feedback lead to similar implementation in facilities worldwide, creating a "logical factory" approach.
This way of doing business obviously affects material handling decisions as well.
"It pushes us very hard for our suppliers of both raw materials and handling systems to be global in their thinking and ability to supply," says Miller.
He says that Gillette's recent introduction of the new Mach3 product is a good example. "When we designed the equipment for Mach3, we had to design a common material handling interface to work for both South Boston and Berlin."
Transfer rates were studied at both locations and the automatic guided vehicle systems were developed simultaneously. Each factory builds on the success of others.
Such flexibility keeps operations lean and nimble, producing smiles on the faces of managers and stockholders alike. Clean-shaven faces, of course.
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