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Manufacturing Technology Insights | Friday, November 30, 2018
The first thing that most manufacturing entrepreneurs think when they hear the term ‘lean manufacturing’ is cost cutting. However, this is just one of the many misinterpretations of the ‘lean’ approach. Based on the research of high-performance companies carried out at the Center for SEV at DePaul University, the following are three unseen advantages of adopting lean manufacturing principles.
A simple framework for the reflection of stakeholder demands
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Designing the product service strategy in order to engage stakeholders through the adoption of lean framework simplifies the strategic planning process by exposing executives to different viewpoints. Similarly, the Return Driven Strategy is a framework that boosts enterprise growth and profitability by aiding the organization in business analysis and effective execution. A crucial principle in the aforementioned strategies and the approach that engages all stakeholders—internal and external—for the refinement, interpretation, and achievement of enterprise goals, is the Map and Redesign process. This is especially profitable for small-to-medium-size manufacturers (SMEs) as the majority of founders make operating decisions based on their knowledge of customers, suppliers, employees, and the market.
Check out: Top lean Manufacturing companies in Apac
A highly captivated employee culture
In an SME, understanding the need to offer employees an engaging culture for a boost in productivity and efficiency is vital, because it has a significant impact on the financial performance of the company. With lean principles, employees become enterprise stakeholders as they are invited to participate in the previously mentioned Map and Redesign process. This change results in a fundamental transformation in employee attitude, wherein even the most formidable problems are celebrated and embraced. Employees engaged in the lean philosophy become sustainable assets for the company as they act as frontline problem solvers.
Improved navigation of the company’s life cycle
An important advantage of adopting lean principles is the ability to conduct a Competitive Life Cycle Analysis of the enterprise to determine the strategies that will be required during the different phases of the company’s life cycle. This is important for SMEs because it reduces the chances of being unprepared for the sudden downturn in business because of unpredictable market conditions.
Lean is a relatively simple approach to enterprise management that transforms into an operating philosophy that boosts results and enterprise growth.
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