|| Print ||
|Articles - June 2011|
|Wednesday, May 18, 2011|
Page 2 of 3
It’s a late winter day, and Jake Nichol is between places. For the past week or so, the 58-year-old has been in Asia at a trade show, trying to pry open new markets for the company’s growing array of multi-tools. Tomorrow he’s off to Germany to put the final touches on a deal that will see Leatherman take over German flashlight maker LED Lenser.
But for now, Nichol is pacing the production floor of the Leatherman complex, just a touch jetlagged, comfortable in CEO-cum-everyman jeans and blue tartan shirt, cowboy boots clacking against the painted concrete. Around every corner, he points at some piece of the Leatherman production program needed to compete and grow the company’s market share.
He points at an assembly table where three people stand in a kind of pod, attaching knife blades to fasteners. That, Nichol says, is an example of the Toyota-inspired production methods Leatherman prefers: an efficient, almost singular motion from one phase of production to another. Its employees work as close-knit teams. Spreadsheets hang from each pod, charting out production goals, whether those goals were met and, if the group fell short, why that particular pod struggled.
The system is designed to weed out those things that American manufacturers can’t afford: inefficiencies, waste and inconsistencies. The process, which the company unabashedly calls the Leatherman Operating System, combines lean manufacturing and management techniques designed to wring every last drop of efficiency out of the production process.
The management style, named after a Japanese leadership technique developed by management expert Shoji Shiba, preaches breakthroughs in business as a way to survive in a rapidly globalizing world. At Leatherman, the philosophy has meant establishing two or three key goals every year toward which the company invests serious time and resources — goals that would require the company, as Nichol puts it, “to completely change the context, and rethink the whole methodology of what you’ve done.”
Two years ago, for example, Nichol challenged his team to develop a multi-tool that would sell for a paltry $30 – exactly what the company’s competitors were selling their tools for, even though they were made in China for far less.
“We challenged our teams, and said: Rethink all that you do, and find a way to get to those kind of cost take-out levels.”
Once every month after Nichol challenged his team, the company conducted rigorous analysis of the tool’s development, looking at potential costs and savings to gauge how close they were to hitting their proposed price point. Eventually, the breakthrough came. Nichol's team found a way to rework their system to cut costs at every step. The new $30 multi-tool was officially announced at a trade show in February, and will hit store shelves in September.
Tuesday, February 25, 2014
BY LINDA BAKER
An intellectual property attorney by day, 48-year-old Stoll Berne attorney Tim DeJong is a singer and guitarist by night.
Tuesday, March 04, 2014
BY DEBRA RINGOLD | GUEST CONTRIBUTOR
How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?
Tuesday, February 25, 2014
BY SOPHIA BENNETT
The coastal town of Coos Bay appears poised to land every economic development director’s dream: a single employer that will bring hundreds of family-wage jobs and millions in tax revenue.
Thursday, February 27, 2014
Our 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.
Thursday, March 20, 2014
BY JASON NORRIS | GUEST BLOGGER
I don’t think anyone can (or should) remember what it was like to get things done without the internet. This milestone in technology has certainly benefited brick-and-mortar companies and subsequently launched a new era of businesses.
Tuesday, February 25, 2014
BY JOE ROJAS-BURKE | OB BLOGGER
The medical research enterprise wastes tens of billions of dollars a year on irrelevant studies. It’s time to fix it.
Wednesday, April 02, 2014
A new report explores the impact of millennials on Oregon's business and political climate.
|How Doug Badger spends his downtime|
|Port at a crossroads|
|100 Best awards 2014|
|Our man in Congress|
|NASA discovers first potentially habitable planet|
|Effects of childhood bullying last a lifetime|
|Scientists make first embryo clones from adults|
|Man urinates in reservoir, ruins 38M gallons of water|
|Recreational marijuana use linked to brain changes|
|Former NYC mayor announces $50M gun law election push|
|U.S. consumer inflation rises: higher food, rent costs|
Marketing the state brings new business, new jobs and a better quality of life for everyone.
Living in the beautiful Pacific Northwest means enjoying our wonderful surroundings, while remaining aware of the multiple types of natural disaster threats that we face: winter storms, windstorms, floods, landslides, earthquakes, volcanoes and tsunamis.“
Oregon State University's hospitality degree program invests in next-generation leaders.
On Saturday, April 26, more than 1,900 local Comcast employees and their families, friends and community partners will “make change happen” as they volunteer to improve schools and nonprofits in Oregon and Southwest Washington as part of Comcast’s 13th Comcast Cares Day.
NAI Norris, Beggs & Simpson just completed their newly rebranded First Quarter Market Reports. Not only does it feature a brand new format, but the report ensures accuracy due to the annual truing up of their database.
Samuel Hernandez, an Associate at Barran Liebman, is the recipient of a 2014 Oregon State Bar Litigation Section Rising Litigator Award.