Tuesday, June 14, 2011

The Production System of the Lago Factory

Lago factory, Venice - Tuesday, June 14th, 2011


The Lago manufactory is serious business. They take heavy consideration of the processes as well as the environment in which their employees work in to maximum quality and efficiency - that is, they take both a micro and macro approach. Unlike many common factories built with concrete, the Lago factory is constructed completely with wood and a lot of glass windows, allowing natural sunlight to fill the factory. The company strongly believes that, "a nice environment has a reflection on the product." I completely agree with this, as experience tells me a person's emotions can greatly influence the quality of their work.

Lago incorporates a system called, Link Production, derived from TPS (Toyota Production System) into their manufacturing processes. Unlike three years ago with the traditional system, the company was able to reduce their factory footprint to a third of what they originally used. Currently with around 12,000 sq. m of space, Lago was able to reduce the costs of their products significantly. Link Production also allowed Lago to reduce lead time, while increasing efficiency of the actual production time, allowing the cost of final products to be reduced even further. Normally, manufacturers have a production ratio of 1:1500. This means that for every one minute used in adding value to the product, 1500 minutes are wasted where no value is added. With Link Production, Lago was able to reduce their ratio to currently around 1:700. Creative Director, Diego Paccagnella, claimed that Toyota succeeded not because of a new aesthetically pleasing design in their vehicles, but because they designed a better way to produce the car, reducing costs and winning the market over. TPS made Toyota cars more affordable for its consumers. Similarly, the Link Production system has benefitted Lago likewise. Diego suggests that designers need to consider the way the company produces their products, otherwise the product may not do well in the market regardless of how well it is designed. Aren't we lucky to have a Mass Productions course at Carleton University. Anyways, take a look at the video above to gain insight into Lago's impressive innovative production system!

- Alan, Michelle, Lindsay

Keywords: Innovation, Experience, Emotion

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