High performance in manufacturing means pursuing lean strategies that help companies produce "better, faster and cheaper"

The productivity gains made possible by high performance practices help companies compete in the world marketplace. Oregon has embraced the consortium model as a means to expand the reach of high performance practices throughout the state. Oregon's high performance manufacturing consortia enable a diverse group of manufacturers representing a cross-section of industries in a geographic region to...

  • Gain exposure to high-performance manufacturing techniques without large expense
  • Share effective high-performance or lean strategies
  • Aggregate workforce and training needs
  • Realize bottom-line outcomes: increased competitiveness, increased productivity, improved profit margin and enhanced customer satisfaction

The consortia are "leveraged learning networks" in which members achieve tangible business benefits while developing sustainable, world-class capability in their businesses and workers.

A model that makes sense for Oregon

The consortium model makes a lot of sense for a state like Oregon, where the majority of the state's 6,000 manufacturers are small—most with fewer than 50 workers. Addressing the challenges of global competition can be overwhelming -- and providing support one company at a time, impossible.

A successful example of the consortium approach

Oregon's first and largest high performance manufacturing consortium is the Northwest High Performance Enterprise Consortium (NWHPEC), which was established in 2002 by a handful of companies committed to embracing a lean manufacturing philosophy. NWHPEC membership has rapidly swelled to 89 firms in Oregon and Southwest Washington, and it represents industries as diverse as semiconductors and railcar manufacturing.

In the last four years, OMEP trained over 3,600 employees at member companies in a wide spectrum of high performance lean strategies. Those NWHPEC companies are reaping the rewards of a trained and focused workforce.

Spreading high performance

There's a need for more regional manufacturers around the state to reap similar benefits: A recent survey conducted by Riley Research for Oregon Manufacturing Extension Partnership (OMEP) found that only 16% of Oregon manufacturers report they are at "maximum efficiency" or "very close." Over 1,500 firms report a "ways to go" in implementing high performance strategies. A startling 30% of firms are "unfamiliar" with high performance strategies.

Not surprisingly, the creation of additional high performance consortia is a high priority in implementing the Oregon Manufacturing Workforce Strategy. In early 2007, five consortia received seed funding through an Oregon state grant to NWHPEC to share their success strategies and coordinate the implementation of the new consortia.

These new high-performance consortia include:

The individual consortium grants pay for part-time staff to do outreach, assess member needs, arrange training in lean through OMEP, coordinate learning tours and other key activities. These critical state investments have proven invaluable as the "glue" that has allowed almost 100 additional firms to begin their high performance journeys.

Can it work for your firm? Find a high performance consortium in your area to learn more about the regional efforts. Also scan the High Performance News Briefs for recent consortia activities.