Celestica Sees Lean Benefits While Announcing Major Offshoring

The Celestica CEO says:

“… he noted benefits from restructuring and lean manufacturing. Lean manufacturing is a series of initiatives that collectively boost efficiency and is adding about 30 basis points to the company’s bottom line.

Celestica is in the midst of a restructuring announced in January that will eliminate 5,500 jobs in a 15-month period. Once complete, 85 percent of the company’s staff will work in low-cost countries like China or Romania.”

I wonder what the timing was here? Was Celestica already seeing major gains from lean manufacturing and then they started to announce the moving of jobs overseas? Conventional lean wisdom says that all improvement will stop once people think they are working themselves out of jobs or have no hope that their job will survive regardless of any improvements. Does anyone know more about this?

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an book titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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