The Hidden Labor Cost That’s Killing Your Margins | Lean Built - Manufacturing Freedom E140
Lean Built: Manufacturing FreedomShow Notes
Jay and Andrew begin with a deceptively simple question: what actually makes a company “lean”? Starting with a quote from Shigeo Shingo, they challenge the common misconception that lean is just Kanban, and explore the deeper reality that lean is less about specific tools and more about principles, tradeoffs, and context.
From there, Andrew shares a deep dive into labor tracking and ERP data, uncovering how much work was happening that never made it into cost calculations, and why “door-to-door” time matters more than overly segmented tracking. Jay pushes back with the tension every shop feels: data is only valuable if it leads to action, and too much friction in systems can break team buy-in entirely.
The episode then shifts into Andrew’s current challenge: producing tight-tolerance parts that his team can’t fully verify in-house. They take a candid look at outsourcing vs. vertical integration, the true cost of CMM capability, and the uncomfortable position of shipping parts you can’t independently validate. Jay talks about why he bought a CMM earlier than expected, what he regrets, and how fast feedback loops can change everything.
More from Lean Built: Manufacturing Freedom
What do flying tiny homes, CNC machines, electric guitars, and the Tesla Roadster have in common? More than you might think. In this episode, Jay and Andrew cover a lot of ground, beginning with the challenges of moving a 19,000-pound tiny home over a house with a massive crane. That experience sparks a conversation about professionalism, customer service, and why manufacturers should pay more attention to the customer experience. From there, the discussion turns to shop improvements, machine rigging, the advantages of anchoring CNC machines, and the difficult decisions involved in buying, selling, and upgrading equipment. Andrew shares his experiments with bandsaw blades, while Jay reflects on saying goodbye to a machine that helped build his business. Things get especially nerdy as the conversation moves into the physics of vibration and resonance. Drawing connections between machining, musical instruments, baseball bats, and even the infamous Tacoma Narrows Bridge collapse, Jay and Andrew explore how seemingly minor changes can dramatically affect performance.
This week, Jay and Andrew talk about finding the right balance between speed, efficiency, and quality in the machine shop. After catching up on Jay’s experiment with working remotely during a family vacation, the conversation turns to used tool holders, the hidden costs of excessive tool changes, and some unforgettable machine crashes. They share stories of broken pull studs, destroyed spindles, and a terrifying incident involving a 45-pound piece of aluminum spinning on a ShearHog. Along the way, they explore why running machines too conservatively can be just as problematic as pushing them too hard, and how machinists can systematically find the sweet spot between performance and reliability.
Jay and Andrew talk through the shop decisions that look wrong on paper but make sense once you consider the whole system. That means knowing when excess inventory is costing you more than it is worth, why cheap equipment can sometimes be exactly the right equipment, and when spending money now saves far more expensive time later. They also dig into 3D printing, toolholding, material choices, and the hidden value of simply trying something instead of deciding in advance that it will not work. Check out all the awesome videos on the Pierson Workholding YouTube Channel and Pierson Plus, and be sure to comment that Lean Built sent ya!
What happens when your business grows to the point where you no longer know everything happening inside it? Jay and Andrew talk about the strange transition from doing everything yourself to building a team that can make good decisions without you. They get into delegation, giving employees room to improve processes, knowing when production needs to take priority, and why good employees eventually need to move from waiting for instructions to simply proceeding unless told otherwise. They also discuss the tradeoff between time and cash, why hiring competent people can accelerate a company, how to think about employee reviews and frequent feedback, and why business owners should deliberately hire people who know more than they do. Plus, there is plenty of shop talk along the way, including coolant changes, lessons from IMTS, and an upcoming Matsuura reinstall.
Jay and Andrew are back from IMTS 2026 with sore feet, too much espresso, and a lot to think about. They compare notes on what actually stood out at the show, from higher-density workholding and spindle-gripper automation to pallet pools, CMMs, in-process probing, and the surprising lack of AI hype on the machining floor. But the bigger question is what any of it is actually worth to a working shop. When does automation create real capacity, and when are you buying an expensive solution because it looks like what a modern shop is supposed to have? Jay wrestles with the ROI on a quarter-million-dollar pallet system, while Andrew makes the case for simpler automation that keeps machines running while people do something else. They also dig into inspection, why quality should happen as close to the process as possible, and when the machine you already own may be the best inspection tool available. Along the way, they talk IMTS survival strategies, trade show networking, bandsaw blades, the changing generation of machinists, why manufacturing knowledge is becoming less guarded, and what younger shops can learn from the last decade of other people’s expensive mistakes.