Lean manufacturing practices: Issues created when two companies are integrated and quality management standards are imposed

Lean Manufacturing (LM) lowers operating costs by cutting waste (Muda) from manufacturing processes. Practicing lean manufacturing principles, conducting Kaizen events, and removing unnecessary activities and variations through continuous improvement keep businesses competitive. However, these practices may create issues when integrating two unique companies and when externally imposed quality management standards conflict. This paper discusses the transfer of a manufacturing facility, Electro-Kinetic Devices (EKD), Inc., from Santa Barbara, California, to the Pacific Scientific (OECO) facility in Portland, Oregon, and the eventual integration of these companies. OECO had many challenges in relocating and transferring the EKD manufacturing process, even though both companies had many lean practices and manufactured similar products. Three primary issues related to LM were: loss of "tribal knowledge" or personnel with manufacturing process experience and knowledge, standardization of common tooling and subcomponents with value stream mapping, and aerospace industry\´s requirements for process validation in the event of manufacturing relocation. The paper further discusses the rigidity in quality management standards within aerospace and defense industries that are counter to many lean principles. This paper then discusses the adoption of International Organization for Standards ( ISO) 9100-Aerospace Standard (AS) 9100 and the integration of lean manufacturing to all defense and aerospace contractors while striving to maintain the highest quality standards.