Posted by: knightbird | June 10, 2013

Lean Transformation at Jabil

I have been extremely impressed by the lean transformation at Jabil, an assembly, manufacturing and plastics molding company that announced it’s potential acquisition of Nypro Precision Plastics, a partner of Sealaska. Starting it’s transformation in 2010, in 3+ years, Jabil has advanced rapidly through its transformation steps. With a total equity of $1,883,823 in 2011, Jabil has increased its shareholder equity to $2,177,990 in 2012 according to its last SEC filing. 

But the excitement for me is the intense effort spent on the lean cultural transformation. According to its website, Jabil conducted 22,000+ Kaizen in 2012, an increase of 7,000 over 2011.

My estimate has previously been that it takes approximately 5 years for a company o achieve a cultural transformation to Lean. And that is with a heavily invested CEO and board of directors. Jabil has a long way to go, but its cultural transformation is well on its way. It’s clear why they are purchasing Nypro. A review of Nypro’s last annual report listed no references to its “High Velocity System.” That was Brian Jones lean implementation started many years ago. It was not a cultural transformation, and apparently has not truly succeeded. 

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