How Does Lean Manufacturing Benefit Firms?
manufacturingtechnologyinsights

How Does Lean Manufacturing Benefit Firms?

By Manufacturing Technology Insights | Friday, February 14, 2020

Beyond reducing expenses and improving effectiveness, lean production methods introduce systems and develop skills among the staff that support transformations in the workplace that new sales create.

FREMONT, CA: The concept of lean production focuses on the removal of waste in all forms in the workplace. Specific lean methods contain just-in-time inventory management, scheduling systems, workplace organization, and agile software development methodologies. Most of these concepts and systems were pioneered by an eminent automobile manufacturer dating back to the 1940s and were consequently adopted as best practices in most industries beyond automotive production.

Eliminates Waste

Lean principles intend to reduce all forms of waste—from sources as different as material errors to worker ergonomics. Several sources of waste are easy to recognize and correct like a machine that is out of adjustment generating high volume of defects. Other forms of waste comprise environmental conditions that obstruct worker competence. Better lighting might help a worker read production commands; moving a file cabinet might purge wasted time for a clerk.

Worker Satisfaction

Employing lean principles in the company needs input and participation from the production staff. They are frequently in the superlative place to see where waste and incompetence occurs. Not only do they serve as a resource for businesses, but employees typically respond in a positive way to sincere efforts to get involved in the improvement processes. When they see suggestions and ideas integrated a sense of ownership and contentment about their contribution is more expected to follow.

Just in Time Approach

Just in time is a strategy proposing extensive inventories that are inefficient in company resources. Business equity tied up in stocks of unprocessed and finished goods interferes with cash flow. Additionally, money is also saved through concentrated warehousing needs. The ideal just in time scenario would have the raw materials bought and delivered at the instant production needs them, and the end product is sold and delivered the minute it comes off the line.

Competitive Advantage

Beyond reducing expenses and improving effectiveness, lean production methods introduce systems and develop skills among the staff that support transformations in the workplace that new sales create. The space saved on warehousing can be used to add new product lines, and the instance is valid for saving time. A business’s staff can take up new work and react swiftly to changes in customer demand. Producing work quickly, in small iterations, without waste and on-time delivery enhances an enterprise’s advantage over the competition.

See also: Top Manufacturing Technology Consulting/Implementation Services Companies

Weekly Brief

Read Also