When to Cut Your Losses in Business | Lean Built - Manufacturing Freedom E161

AI is starting to change the shop in ways that go far beyond ChatGPT.Andrew and Jay compare notes on the AI tools they are actually using, from automating invoices and administrative work to the possibility of simply describing a part and having AI build a 3D-printable model. They talk about where Autodesk Fusion’s AI tools are today, why learning CAD may look very different in a few years, and why good systems still matter when software keeps changing.Then it’s back to machines. Andrew is officially lathe-free, which leaves some valuable open floor space and raises the obvious question of what, if anything, should replace it. That leads into CMMs, five-axis machining, the ongoing Matsuura saga, and the constant tension between speed, quality, consistency, and automation. Remember, there is no point in making bad parts faster.Plus, IMTS is almost here. Andrew and Jay look back at the Instamachinist class of 2016, talk about what they are hoping to see at the show, and reveal how to get your hands on one of Andrew’s limited IMTS shirts.

Andrew recently sold an underutilized CNC lathe, which raises a bigger question: when an investment does not work out as planned, was the money wasted? How do you gauge what value you got out of it, even in learning?Andrew and Jay discuss knowing when to experiment, when to hire expertise instead of learning everything yourself, and why good business owners need to understand what they should and should not personally master.Then the conversation turns to KPIs, benchmarking, revenue per employee, and the danger of comparing your company against businesses operating under completely different constraints. They also dig into the levers a business owner can actually control, why discounts may simply pull future sales into the present, and the relative value of Pierson's traditional IMTS sale.

What happens when the systems meant to make your shop more efficient start creating more complexity? Can automation be dangerous? When a system works reliably, how do you keep human checks from becoming mindless? When should something live on a checklist, and when should it simply be automated? And what happens when you keep stacking new solutions on top of problems that have already been solved?Jay and Andrew cover all this plus Matsuura leveling issues, Brother’s U500 100-tool five-axis machine, pallet automation, mist filtration, shop air conditioning, and the constant challenge of improving a manufacturing operation without exhausting the people who work in it.

What does a real lean shop look like when the cameras aren’t hiding the mess?In this episode of Lean Built, Jay Pierson goes solo to break down a behind-the-scenes day at Pierson Workholding...and some of the misconceptions people have about lean manufacturing. A lean operation isn’t necessarily spotless, effortless, or perfectly optimized. Sometimes two guys wrapping a pallet is actually the right solution.Jay digs into why Pierson starts the day with 3S, how leaders should turn expectations into clear systems and procedures, and why extreme ownership means taking responsibility when your team doesn’t meet the standard.He also looks toward the future: AI, robotics, automation, and the technology that will increasingly remove tedious physical and mental labor. But the goal isn’t a world without work. There’s something deeply satisfying about making things, solving hard problems, and finishing the day knowing you produced something real.

If you’re heading to IMTS 2026, don’t spend three days wandering around looking at machines you could have watched on YouTube.In this episode, Andrew and Jay share their best advice for machine shop owners who want to get real value out of IMTS, from crafting a better elevator pitch and making the right connections to finding hidden capacity gains in the tooling, workholding, and processes surrounding the machines you already own.They talk about why you should guard your time at booths, meet the technical people behind the sales teams, use your phone as an external memory, network with other shop owners, and debrief every night before valuable contacts and ideas disappear.Plus: free dinners, IMTS transportation hacks, CMM shopping, and where you can find Andrew and Jay at the show.

Change is inevitable, but how do you get through it without losing your culture? From improving systems and giving honest feedback to hiring the right people and knowing when someone is no longer the right fit, Andrew and Jay share lessons they’ve learned from change over the years. They also dive into why continual improvement matters, how to create a team that’s willing to adapt, and why great leadership often means making difficult but necessary decisions.

This week, Andrew and Jay dive into one of the most overlooked competitive advantages in business: simplicity.Inspired by Stuart Brand’s The Maintenance of Everything, they explore why every system naturally drifts toward chaos, and why leaders should must eliminate it.Along the way they discuss why simple systems outperform complicated ones over the long run, the surprising leadership lessons hidden in Waffle House’s infamous order system, how unnecessary complexity creates maintenance nightmares, hiring for curiosity instead of just qualifications, why great communication always requires a closed loop, and the difference between patient hiring and slow hiring.Here's the insane Waffle House video they discuss.

This week, Andrew and Jay are back from vacation and comparing notes on what it takes to unplug without losing momentum. They talk about the transition back into work, why deleting emails can be more productive than answering them, and the systems they rely on to keep their businesses running while they’re away.They then shift into leadership and communication through the lens of Surrounded by Idiots, a book on personality styles and self-perception. Andrew reflects on candid feedback he recently received from his team and how easily leaders can misjudge the way they’re perceived. Jay and Andrew explore healthy conflict, hiring for emotional maturity, decision fatigue, and why understanding different personality types can dramatically improve communication inside an organization.They also discuss how reducing unnecessary choices, from restaurant menus to product catalogs, can create better customer experiences, stronger businesses, and less mental friction for everyone involved.

This week, Jay and Andrew treating vendors like partners, and why that pays off. They also dive into the evolution of their daily morning meetings, sharing how they’re constantly tweaking the format to make those few minutes more meaningful for their teams.Finally, they tackle AI in manufacturing. Where does it actually save time? Where does it make people worse at thinking? And how do you use it as a tool without letting it become a crutch?

What if one of the fastest ways to improve your machine shop is walking through someone else’s?In this solo episode, Andrew shares lessons from recent shop tours, including visits to manufacturers in Japan and Toyota Material Handling in Columbus, Indiana. He explains why every shop owner and manufacturing leader should regularly visit other facilities, shamelessly borrow great ideas, and expose their teams to new ways of thinking.Andrew explores how shop tours create better benchmarks, reveal simple solutions to stubborn problems, strengthen industry relationships, and help leaders see both their company’s strengths and blind spots. He also reflects on why taking your team along is often even more valuable than going alone, and why the best leaders spend more time listening than talking.