Tru-Test – a New Zealand agri-tech company that makes electric fence systems, animal weighing and recording equipment and milk meters – has become a top proponent of Lean manufacturing within the country, the New Zealand Herald reports.
Jason Kiteley, operations manager at Tru-Test, was quick to note that many local manufacturers think it's cheaper to outsource labor and other tasks to China. However, this can lead to poor quality product and other complications. In a “total cost plan,” it can actually be more expensive, especially when compared to Lean manufacturing.
“People can certainly be dazzled by cheap prices but when you start taking into account lack of flexibility, freights costs and quality issues from time to time, you can often find what might have looked like a good deal might not be at all,” Kiteley explained to the news source.
At Tru-Test, the core philosophy is establishing credibility through socially responsible manufacturing. Lean enables the company to use manufacturing practices that the company wouldn't be embarrassed about if they were exposed publicly.
A number of companies have been reconsidering their use of foreign labor and their manufacturing practices in general, given public relations gaffes such as those experienced by Apple and Foxconn.