Now many Iowa companies are looking at an alternative to a plant addition called cellular manufacturing. Many company managers have become dissatisfied with having warehouses full of raw material and finished products with the floor full of in-process inventory. Often they still can't produce the particular models that are selling well that month.
Most companies find they can convert to cells with only modest equipment purchases.
Many companies just need to rearrange their existing equipment. Sometimes they bring older equipment out of storage that works well at the rate a particular cell is producing. Other members of the plant team besides the plant manager need to be involved in the change to cellular manufacturing. Purchasing concentrates on developing supplier partners that will help assure that they can keep their parts in stock. Sometimes this can include filling bins in the factory but not invoicing until parts are used or moved to the line.