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Facing Crisis in the Social Media Age

Posted by Geri Denterlein on Apr 26, 2017 1:30:00 PM

Editor’s note: Geri Denterlein is CEO and founder of the strategic communications firm Denterlein. She recently conducted a presentation on crisis management to the AIM CEO Connection.

When a crisis breaks are you ready? It happens every day. You get the call:

  • An employee has been seriously injured in one of your plants.
  • A natural disaster has shut down production at a major facility.
  • Workplace violence or a threat has forced the closure of a plant.
  • Your employees are on strike.
  • A major product has been recalled.

Dominoes.jpgFrom an operations perspective, you may have contingency plans in place for a facility shutdown but has your team contemplated the reputational fall-out that will likely result? Who decides whether a situation has the potential to cause reputational damage to your company? And what’s the plan when the answer is: “Yes, it does?”

Spontaneous, catastrophic events can bring production to a screeching halt, quickly and decisively decimating the bottom line and shaking the confidence of consumers, shareholders and distribution partners. In a rapidly changing economy where 90 percent of executives say reputation risk is a key business challenge, the perception of your brand remains closely tied to consumers’ decisions to buy or invest.

“Because of … the internet and globalization, the dominoes of the supply chain are now very close together – and the closer they are, the faster they fall,” says Arash Azadegan, PhD, a professor of supply chain procurement at Rutgers University.

If the unthinkable happens, how will you respond?

A communications plan can guide your company’s responses during a crisis, mitigating the impact on reputation. Being prepared before a situation engulfs your organization can help to ensure consistent messaging and orderly, proactive distribution of critical (often sensitive) information to stakeholders, including employees, distribution partners, shareholders and the media. Advanced planning also ensures that if and when a crisis occurs, you can respond quickly and with some level of transparency, authenticity and accountability.

The collapse of the newspaper industry and rise of social media has transformed the way Americans get their news. Public expectations during a crisis have changed along with it. While leaders of the pre-digital age had the luxury of time to gather all of the facts and formulate a plan – those of today do not. The popularity of social media and Twitter, in particular, makes the demand for immediate information paramount. But facts alone are not enough. Consumers also expect sincerity and some level of accountability.

Ignore any one of these tenants at your own peril.

Learn more about the AIM CEO Connection.

Topics: Management, Manufacturing, Communications

Trump Policies on International Trade Take Shape

Posted by Kristen Rupert on Jan 5, 2017 11:27:58 AM

President-Elect Donald Trump’s international trade leadership team is now complete. 

international.flagssmall.jpgRobert Lighthizer was announced this week as US Trade Representative.  Lighthizer joins incoming Commerce Secretary Wilbur Ross, new National Trade Council head Peter Navarro, and Jason Greenblatt, special representative for international negotiations, as Trump’s picks to set and execute US trade policy.

 What might we expect from this team?  What are the issues to watch in 2017?

NAFTA.  The North American Free Trade Agreement with Mexico and Canada is widely expected to be renegotiated.  An update of NAFTA is welcomed by many trade experts.  NAFTA came into force in 1994, before the rise of the Internet.  Because of the breadth, depth, complexity, and influence of technology on trade today, new rules are needed.  Mexico and Canada have signaled a willingness to modernize the treaty—under certain conditions.  Scrapping NAFTA altogether, which Trump previously championed, would threaten millions of US jobs.

China.  Trump speaks frequently about China’s currency manipulation, steel-dumping and aggressive trade practices.  His trade appointees are likely to stand tough on China—and this toughness may serve the US well.  However, a proposal to hit some China imports with significant tariffs is meeting resistance. AIM has heard from Massachusetts manufacturers concerned that components they source from China may become prohibitively expensive.

Russia.  The US levied trade sanctions on Russia in March 2014, after the Crimea incursion.  Many European countries did the same.  Given Trump’s frequent praise of Russian president Vladimir Putin and his desire to strengthen ties with Russia, might US sanctions be lifted?  Complicating the US-Russia relationship is Russia’s ongoing cyberwarfare against the US, which appears to have affected the recent US presidential election.   Trump’s Secretary of State designee Rex Tillerson, CEO of ExxonMobil, is known to have business ties with Russia.  More will be learned during confirmation hearings.

Brexit.  The 2016 vote by citizens of the United Kingdom to leave the European Union surprised the world.  New UK Prime Minister Theresa May is overseeing “Brexit” and has proposed March 2017 as the start date for the two-year process.  However, the recent requirement for a Parliamentary vote to approve Brexit and the appointment of a new UK ambassador to the EU have muddied the Brexit waters.  The UK is searching worldwide for hundreds of trade negotiators needed to lead trade talks with the EU.  Although US President-elect Trump has signaled interest in negotiating a bilateral trade agreement with the UK, that country cannot negotiate any new trade agreements while it is still part of the EU.  So any US-UK agreement would have to wait until 2019 or 2020.  In the meantime, US and UK diplomats are working to continue and grow the US-UK trade relationship.

Key Europe Elections.  The Brexit vote was the first step in the resurgence of populism in Europe.  Concerns about immigration and terrorism have driven European voters to rebuff convention and vote for change.  Italy’s recent vote was a win for populism and resulted in the resignation of the Italian Prime Minister.  France is holding its presidential election in May.  Current president Francois Hollande will not seek re-election.  Former Prime Minister Francois Fillon beat ex-president Nicolas Sarkozy in the primary to become the conservative nominee for president.  Marine Le Pen, leader of the Far Right National Front, is her party’s nominee.  A Socialist Party nominee will be selected this month.  In Germany, Chancellor Angela Merkel will run for a fourth term in the Fall 2017 elections.  She has been Chancellor for 11 years and she leads the Christian Democrats Union party.  The EU-US trade relationship is the largest trade relationship in the world, so any changes in leadership in the key EU countries will affect US commerce.   

Other issues to watch:

The US Export-Import Bank lacks a quorum and cannot approve loans of more than $10 million.  Will the new administration break the logjam?  Cuba is now welcoming US commercial cruise lines and airlines.  JetBlue—Massport’s largest carrier—hopes to be approved for future non-stop flights between Logan Airport and Havana—but only if the further opening of the Cuba market continues under a new US presidential administration.

Israel is not a significant trade partner for Massachusetts, but there’s a strong Massachusetts-Israel talent pipeline and Israeli-founded companies represent thousands of jobs in the Bay State.  Will the recent UN vote on Israeli settlements affect that relationship?  Will the Trump administration’s pick for US Ambassador to Israel move the US embassy from Tel Aviv to Jerusalem?

The Trans-Pacific Partnership (TPP) is considered to be on life support, as President-elect Trump has promised to withdraw from this 12-country pact.  Key concerns on abandoning TPP are the US relationship with its long-time trading partner Japan, the rising influence of China in the Pacific region, and the likelihood that many Asian countries will now sign on to the China-led Regional Comprehensive Economic Partnership Trade Agreement, or R-CEP, which will lower trade barriers in the region but will not benefit the US.

Other US Free Trade Agreements.  The US now has 14 FTA’s covering 20 countries.   Will the Trump trade team renegotiate these?

It’s going to be an interesting year for trade.

Topics: International Trade, Manufacturing, Donald Trump

AIM Leaders Appointed to Three Key Commissions

Posted by Christopher Geehern on Sep 7, 2016 12:06:17 PM

Associated Industries of Massachusetts and several of its member companies have been appointed to represent employers on three key state commissions looking at health-care costs, financial best practices and the future of manufacturing.

Lord.short.jpgRichard C. Lord, President and Chief Executive Officer, was among 23 people named yesterday to a special commission studying the variation in prices among Massachusetts hospitals and health-care providers. The commission was established as part of a deal to avoid a ballot question that would have reduced health insurance payments to the state’s largest hospital network, Partners HealthCare, and given some of that money to lower-paid competitors.

Reports by the attorney general’s office and the Massachusetts Health Policy Commission have blamed rising health-insurance premiums in part on the fact that some academic teaching hospitals charge significantly more money for medical procedures than community hospitals with no better outcomes. Massachusetts residents obtain medical care at high-cost teaching hospitals far more frequently that people in other states.

Lord has been deeply involved in efforts to address the high cost of health care for more than a decade. He currently serves on the Health Policy Commission and was a charter board member of the Massachusetts Health Care Connector Authority. He was appointed to the special commission on price disparity by House Minority Leader Brad Jones, R-North Reading.

“Massachusetts is home to world-renowned hospitals and doctors, but we also know that up to one-third of all medical care is delivered inefficiently. I look forward to working with members of the commission to ensure that our unparalleled medical system is also affordable for employers and workers,” Lord said.

Others named to the special commission include AIM members Howard Grant, MD, President and Chief Executive Officer of Lahey Health System; Deb Devaux, Chief Operating Officer of Blue Cross Blue Shield of Massachusetts; Lynn Nicholas, President and Chief Executive Officer of the Massachusetts Hospital Association; and Lora Pellegrini, President and Chief Executive Officer of the Massachusetts Association of Health Plans.

By statute, the commission will also include the secretaries for administration and finance and health and human services, the attorney general, and the executive director of the Group Insurance Commission (GIC) under the co-leadership of the Senate Chair of the Joint Committee on Health Care Financing Senator James Welch and House Chair of the Joint Committee on Health Care Financing Representative Jeffrey Sanchez.

Holahan.jpgMeanwhile, Katherine Holahan, Vice President of Government Affairs at AIM, was named to a three-year term as a member of the State Finance and Governance Board.

The board works to further transparency, accountability and best practices among state entities relative to investments, borrowing, or other financial transactions involving public funds. 

The panel is required to review any derivative financial product relative to transactions entered into by state entities, including any quasi-public entity, independent authority, or any state entity that is authorized to manage or oversee public funds. Examples of these entities are: the Massachusetts Port Authority; the Massachusetts Water Resources Authority; and the Massachusetts School Building Authority.

The final appointment was Brian Gilmore, Executive Vice President of External Affairs, who was named to another term as a member of the Massachusetts Advanced Manufacturing Collaborative (AMC).

Gilmore.jpgMade up of leaders from industry, academia and government, the AMC implements and evaluates state policies to support the competitiveness of Massachusetts manufacturers. Gilmore leads AIM’s manufacturing initiatives and has worked on policy and projects that allow manufacturing companies to be efficient, competitive and attractive paces to work for skilled employees.

The AMC addresses issues through five working groups: (1) Promoting Manufacturing; (2) Workforce & Education; (3) Technical Assistance & Innovation; (4) Cost of Doing Business; and (5) Access to Capital. The AMC also works in parallel with President Obama’s Advanced Manufacturing Partnership and with seven other states through the National Governors Association Center of Best Practices Policy Academy on Advanced Manufacturing and Innovation.

 

Topics: Associated Industries of Massachusetts, Health Care Costs, Manufacturing

Manufacturing Month Shows the Future of Industry

Posted by Brian Gilmore on Jun 29, 2016 2:13:14 PM

What's the best way to remind Massachusetts residents that manufacturing is alive and well in the Bay State?

The answer is for manufacturing companies to take part in National Manufacturing Day on October 7 and Massachusetts Manufacturing Month during the entire month of October.

Go to mfgday.com to register an event for free publicity and helpful ideas for hosting an event. And check out MassDevelopment’s AMP it UP! to view videos of manufacturing events. Then contact me for more information and ideas - bgilmore@aimnet.org or 617-262-1180 Ext. 322. 

Why is manufacturing important? Check out these numbers:

ManufacturingMonth2016.1.jpgManufacturingMonth2016.2.jpg      

Topics: Manufacturing, Massachusetts Manufacturing

AIM Next Century Honoree | Crane & Company

Posted by Christopher Geehern on Nov 18, 2015 1:33:54 PM

Editor's Note - Crane & Company of Dalton was among three companies and individuals honored with Next Century awards at the AIM centennial gala on Monday.

If you think AIM has been around a long time, consider the fact that Crane & Company was already more than a century old when it became the second member of Associated Industries of Massachusetts in 1915.

Crane paper products have been closely woven into the fabric of American history, from 19th century stock certificates to correspondence between Franklin and Eleanor Roosevelt. The company is perhaps best known for its role as the exclusive supplier of US currency paper since 1879.

Topics: Associated Industries of Massachusetts, Massachusetts employers, Manufacturing

A Welcome Political Consensus on Manufacturing

Posted by Rick Lord on Sep 25, 2015 5:10:22 PM

The commonwealth’s top political leaders agree that manufacturing has a bright future in Massachusetts - and that’s great news for the state economy.

manufacturingGovernor Charlie Baker, House Speaker Robert DeLeo and Senate President Stanley Rosenberg today joined a bipartisan group of business leaders, cabinet secretaries and legislators to kick off Manufacturing Month in Massachusetts from now through the end of October.

The event was organized by the Legislature's Manufacturing Caucus, chaired by Rep. John V. Fernandes, D-Milford, and Senator Eric Lesser, D-Longmeadow.

The observance is intended to highlight the importance of the manufacturing sector; to encourage students and workers to consider manufacturing as a pathway to a successful career; and to recognize the world-class companies, maker spaces and startups that make up the manufacturing sector from Boston to the Berkshires.

For me, as the CEO of the state’s largest employer association, the sight of elected officials from both parties standing together at the State House to celebrate the 7,500 manufacturing establishments in Massachusetts was heartening. Some political leaders may dismiss manufacturing as a dying industry, or overlook it entirely in the pursuit of the “technology sector,” but there is a clear and unified view in Massachusetts that manufacturing and technology are part of the same equation for success in creating jobs.  

More than 250,000 Massachusetts residents work in manufacturing businesses, which accounted for more than 10 percent of gross state product (GSP) - $45.06 billion - in 2013, the most recent year for which numbers are available. Manufacturing workers in Massachusetts earn an average pay of approximately $93,862 per year, among the highest in the country.

And manufacturers invest a far higher percentage of sales in research and development than non-manufacturing companies.

The six companies that took part in today’s ceremony underscore the diversity and promise of making things in Massachusetts – from biopharmaceutical leader and AIM member Biogen to clean-tech startup Greentown Labs, to Maybury Material Handling to grinding firm Boston Centerless to contract machining company Accurounds to another AIM member, officer furniture maker AIS.

The State House event is the first in a series of events scheduled throughout the month of October that will highlight best practices in workforce training, showcase programs that are available to employers and workers, and advance dialogue to address current work force challenges.

The observance will be broken up into five weeks, representing five regions of the state. AIM encourages manufacturers to participate in the celebration by hosting a tour, making a presentation at a local school, or attending one of the many events scheduled across the commonwealth. The weeks will be assigned as follows:

  • Week 1 (September 27-October 3): Central Mass/495/MetroWest 
  • Week 2 (October 4-10): Western Mass/Berkshires/Pioneer Valley
  • Week 3: (October 11-17): Northeast
  • Week 4: (October 18-24): Southeast/Cape & Islands
  • Week 5: (October 25-31): Greater Boston

Employers or school districts interested in participating in an open house in October can visit the following sites for more information, including guidance on how to successfully host an event.

Announcement of Manufacturing Month came one day after Governor Baker and several key administration officials discussed the challenges of training and educating the next generation of manufacturing workers during a meeting of the Massachusetts Workforce Professionals Association. I had the opportunity to introduce the governor at that event and to talk about AIM’s Blueprint for the Next Century, which recommends elevating the role vocational education and other steps to close the skills gaps that threatens to impede the growth of manufacturers in years to come.

 

Topics: Manufacturing, Massachusetts Manufacturing

Expert: CEO Defines Workplace Climate

Posted by Brian Gilmore on Dec 15, 2014 8:48:17 AM

Today’s competitive environment demands fully engaged employees at all levels of an organization.  The CEO must define the leadership agenda that will drive employee engagement and superior performance for an organization, an expert told the AIM CEO Connection recently.

Two_WomenMike Maginn, president of Singularity Group, said, “Creating a workplace climate where people feel eager to deal with challenges, where they want to contribute ideas, and where they feel personally valued is the job of the CEO.  It’s a critical job, and the good news is that there are some defined, specific actions that leaders can take to change or improve the climate.”

Maginn led a discussion about culture and climate with a dozen chief executive officers who are members of the North Shore AIM CEO Connection.  He helped the CEOs explore the nature of culture and climate:

  • Culture consists of the norms and values of an organization and defines acceptable behavior.
  • Climate is what it feels like to work in an organization, which drives employee engagement.
  • Dimensions such as clarity, standards, responsibility, recognition, teamwork, and commitment define climate.
  • Climate dimensions can be measured.
  • Day-to-day leadership actions create climate.
  • A change in leadership actions will lead to a change in climate.

There is no “right” culture and climate, so the CEO must delineate the needs of the company and its customers to capture the essence of the culture and climate that will drive the organization in the right direction.

Veda Ferlazzo Clark, the former chief executive who moderates CEO Connection, said, “CEOs are always concerned about the culture of their organization and how they can affect it to maximize performance. It often feels amorphous, but the concept of climate is specific and actionable and can help CEOs and their senior managers feel as though they can make real change.” 

The CEO Connection brings together CEOs to talk about important topics with their peers to help them make critical decisions that will drive their company’s growth. Each session of the CEO Connection includes a presentation from an outside expert, open discussion about current issues, and a company tour.

Manufacturing/industrial CEOs interested to learn more about the AIM CEO Connection may contact me (bgilmore@aimnet.org) or Gary MacDonald (gmcdonald@aimnet.org). 

Topics: CEO, Management, Manufacturing

State Safety Officials Narrow Hoisting Regulations

Posted by Christopher Geehern on Nov 17, 2014 2:45:00 PM

The Massachusetts Department of Public Safety has narrowed the scope of its controversial year-old hoisting regulations after agreeing with Associated Industries of Massachusetts that federal rules pre-empt some of the state requirements.

ForkliftThe change means companies that operate industrial lift trucks and forklifts solely on their own property are no longer subject to the state regulations if the area where the equipment is used is not accessible to the public.

AIM objected to the regulations because they were costly and duplicated federal rules enforced by the Occupational Safety and Health Administration. The state rules forced some employers to comply by reassigning long-term employees who had operated hoisting equipment for years to other jobs.

“The Department of Public Safety (DPS) deserves tremendous credit for an intelligent approach to regulation,” said Robert Rio Vice President of Government Affairs at AIM.

AIM and lawyers representing forklift manufacturers and technicians, prepared a legal memo to DPS outlining the case for pre-emption, citing several similar major national cases. DPS reviewed the memo and, following several discussions, agreed with AIM’s position and released the guidance making the hoisting regulations consistent with pre-emption law. 

Only industrial lift trucks and forklifts are exempt. Operators of other equipment subject to the law must still be licensed, even if the hoisting devices are used in areas where the public is not allowed. 

The exemption does not apply if the public has access to any property in which the equipment is operated. That includes warehouse type stores, where aisles are blocked off for forklift activity, but the public is otherwise allowed to walk freely.

There is also a new exemption for technicians preforming repair.      

Employers should refer to DPS administrative rulings and FAQ prior to making any changes to their forklift licensing requirements.

“Efficient regulation is a cornerstone of AIM’s new Blueprint for the next Century economic plan,” Rio said.

“Public Safety Commissioner Thomas G. Gatzunis, legal counsel Beth McLaughlin, and Tim Wilkerson, Regulatory Ombudsman Director at the Executive Office of Housing and Economic Development, have created a model for smart partnerships between business and government.” 

Topics: Hoisting, Safety, Manufacturing

Manufacturers, Vocational Schools Get on the Same Page

Posted by Brian Gilmore on Oct 1, 2014 9:47:25 AM

A group of Massachusetts manufacturing companies is reporting significant progress in efforts to ensure that vocational high schools are teaching students the skills that employers need.

ManufacturingDay2014This spring, 14 of the 30 Massachusetts vocational schools offering machining technology accepted an invitation from the Manufacturing Advancement Center Workforce Initiative Collaborative (MACWIC) to test the proficiency of students enrolled in their machining programs.

Results of the testing are to be announced Monday in Northampton. By passing the Applied Manufacturing Technology Pathway Certification exam, students will earn a Level 1 MACWIC certificate in Basic Manufacturing Skills.

MACWIC designed the Applied Manufacturing Technology Pathway Certification to create a standard instruction and evaluation process to help employers evaluate the skills of a job applicant. The first of the five levels of instruction includes shop math, blueprint reading, metrology and quality inspection, safety and work readiness.

Completion of levels one and two of the Pathway can lead to a pre-apprentice certificate, while completion of all five levels can lead to an associate’s degree in manufacturing technology.

The ultimate objective is for vocational schools to adopt all or a portion of the MACWIC machining curriculum. The Pathway is also designed for use in incumbent and dislocated worker training programs.    

The Massachusetts Manufacturing Extension Partnership (MassMEP) and Worcester Polytechnic Institute (WPI) are giving Massachusetts vocational high schools that validate their Machine Tool Technology programs against the MAWIC credential access to the Pathway curriculum and online programing to support certificate instruction. The total value of the grant is $2.5 million.

The MACWIC program has been endorsed by AIM and received the association’s Gould Education & Workforce Development Award in 2013. 

Massachusetts Vocational Schools with Machine Tool Technology Programs participating in the curriculum, testing, and online programing include:

  • Assabet Valley Regional Technical High School, Marlborough
  • Bay Path Regional Vocational School, Charlton
  • Blackstone Valley Regional Vocational Technical High School, Upton
  • C.H. McCann Regional Technology School, North Adams
  • Franklin County Regional Technical High School, Montague
  • Greater Lowell Regional Technical High School, Tyngsboro
  • Essex (North Shore Regional) Technical High School, Middleton
  • Putnam Vocational Technical High School, Springfield
  • Shawsheen Valley Regional Vocational Technical High School, Billerica
  • Smith Vocational & Agricultural High School, Northampton
  • Somerville High School, Somerville
  • Taconic High School, Pittsfield
  • Whittier Regional Vocational High School, Haverhill
  • Worcester Technical High School, Worcester

Several AIM member companies will assist MACWIC during the next year in efforts to secure participation in the certificate program by the remaining 16 vocational and technical schools that offer machining technology.  

Topics: Skills Gap, Manufacturing, Massachusetts Manufacturing

Secret to Lean: Employee Development

Posted by Bruce Hamilton on Sep 5, 2014 2:25:33 PM

Editor’s note - Bruce Hamilton is President of GBMP, Inc., (www.gbmp.org) a not-for-profit located in the College of Management at the University of Massachusetts Boston.

Twenty-five years ago a book called The Machine That Changed the World coined the term “Lean.” It was the first time the term was used to describe what had been previously referred to as the Toyota Production System, or TPS.

ManufacturingWorkerSmallThe book, which was written by a distinguished academic panel, legitimatized the techniques and tools being used by The Toyota Motor Corporation and captured the imagination of industry and lawmakers alike.

What was not as well understood at that time was the profound impact the use of TPS methods would have on employee development. Previously disengaged employees became excited about solving problems and making improvements. The mantra (first echoed by Japanese industrial engineer Shigeo Shingo who is considered the world’s leading expert on manufacturing practices and the Toyota Production System) “easier, better, faster and then cheaper” implied that Lean methods when properly understood not only improved a company’s competiveness through higher quality, shorter lead-times and lower costs; it also gave every employee a personal challenge to make their work better.

The concept of workforce investment and development, it turns out, was more of a sea change for industry than the technical aspects of Lean. For more than a decade, most manufacturers glommed onto the tools without understanding the essential ingredients of employee understanding and participation – every employee, not just a small “A-team.”  Results from this well-intentioned but hollow approach to improvement were mostly disappointing.   Apparent advances made through “improvement events” did not stick because neither employees nor managers really understood the “know-why” behind the know-how.  

In 2004 on the tenth anniversary of the founding of the Lean Enterprise Institute (LEI), Jim Womack, founder of LEI and principle author The Machine That Changed the World, declared “The age of tools is over.”   What had been implicit in the Toyota Production System from the start – the focus on people – was finally becoming apparent to at least some industry leaders. Today, yet another decade later, the concept of employees as the “most valuable resource” is finally gaining broader traction. At its Lean Transformation Summit in March, LEI’s current CEO, John Shook quoted another TPS aphorism that sums up the importance of people to successful Lean transformation: “Build people first, then products.”

The 10th Annual Northeast L.E.A.N. Conference (October 1-2, 2014 at the Mass Mutual Center, in Springfield) will pick up the same theme with a program entitled Lead, Enable and Nurture: Putting People First. Featuring both nationally recognized Lean advocates from manufacturing and healthcare (Goodyear, Whirlpool, ThedaCare, IBM, MillerCoors and more) as well as local employee improvement teams sharing their Lean transformations during panel discussions and in the innovative “Lean Lounge,” the event is expected to draw more than 700 attendees from more than 200 different lean thinking organizations.

No surprise - many of those organizations will bring large numbers of their employees. These companies know that it’s those people who will ultimately drive their LEAN process.

Register for the Northeast LEAN Conference

 

Topics: Manufacturing, Productivity, LEAN

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