An introduction to the lean manufacturing system and its benefits

The lean manufacturing system is one that was put in place in order to make maximum use of financial resources, work force and materials in order to achieve the best possible results. These strategies are being implemented by companies around the world in a bid to reduce unproductive tasks and unnecessary operating expenses in their businesses.

With Lean manufacturing, firms are able to face all the challenges thrown at them in the business world of today and retain a competitive edge. Efficiency and profitability are the watch words. The lean manufacturing process not only reduces operational costs, it also improves a company’s ability to win business against their rivals. Pricing and product quality through a lean manufacturing process help a business survive and thrive through the toughest of economic environments. With the lean manufacturing system, seven factors are placed under the microscope; these are:

• Over production
• Over processing
• Transportation
• Motion
• Inventory
• Waiting
• Scrap
• Defect

These eight are regarded as potential ‘forms of waste’ in lean terminology.

The benefits of adopting the lean manufacturing principles:

According to experts one of the major advantages of implementing a lean manufacturing model is the ability to reduce the length of manufacturing cycle. With the reduction in manufacturing time, operational costs arising from energy requirements, utilities and labour wages are also significantly reduced. This ensures that the company generates significant cost savings on the bottom line which can be passed on to the consumer, put into research and development, or pad the bottom line.

One area where the lean manufacturing model is seen clearly and effectively is in terms of work space. To keep business operations running smoothly at any given time, adequate work space is a must and with the lean strategy, this can easily be achieved.

When it comes to productivity companies that adhere strictly to lean manufacturing practices boast higher productivity percentages than those who do not operate under these principles. In fact, companies working with these principles have increased productivity by as much as 75% to 125%. The reasons for this are not far-fetched. Lean manufacturing processes target time and effort. Therefore, elimination of the seven wastes outlined above serves to increase productivity by helping workers to get on with their work in the most comfort. When there is no distraction and interruptions for workers, productivity will most definitely be maximized. Lean manufacturing is therefore a necessity for any company that wants to attain the highest grades in productivity.

When the wastes factors highlighted above have been dealt with the company and its workforce will be able to focus on the requirements of the customer. This will equally go a long way in boosting earnings and profits in the company. This is because companies with a clear focus on their customers always see a sharp upsurge in sales. Lean manufacturing is a good way to achieve good customer relations as it shows the business how it can improve products and services.

With lean manufacturing, businesses are able to operate a streamlined, rationalised and lean structured organisation. Elimination of excess and unnecessary job positions in a company is a good way of reducing labour costs, which in turn leads to the generation of savings.

Lean manufacturing, therefore, is a must for companies that need to increase productivity. Courses on this subject can be found at many business schools and Online.