A production methodology for agile manufacturing in a high turnover environment

An analysis of the US border manufacturing industry revealed that, while a plentiful supply of inexpensive labor is available, there are high levels of absenteeism and turnover. This in turn has affected this industry’s ability to implement lean and agile manufacturing production environments. It was argued that lower inventory levels and quicker response time to market fluctuations are required for these manufacturers to stay competitive. Yet, without careful consideration of the idiosyncrasies of the infrastructure, the change to leaner and more agile manufacturing could destroy some of these plants. The high levels of absenteeism and turnover, which have a direct bearing on the low and variable product yield rates, could cause an agile and lean production system to fail. Yet this research has shown that a recursive, pull‐type production control system that will meet the required daily quota and minimize inventory while accounting for high levels of absenteeism and turnover that directly affect workstation yield rates would be advantageous. That is, a US border manufacturer can become leaner and more agile in spite of the drawbacks that are germane to the US border manufacturing industry.