What does lean manufacturing mean?

And can it add value?

The recent boom in the manufacturing sector has attracted a lot of attention. And although there's been a lot of discussion of technology-related topics and the importance of 'lean' manufacturing techniques, there seems to be little talk about the specific aspects of lean that make a real difference to the competitiveness of a company.

What is lean manufacturing anyway? Lean means getting rid of waste (ie activities that are non-value adding). Lean Manufacturing also means reducing and eliminating unnecessary steps in the process. Lean Manufacturing is not the only type of Lean, but it's more often than not the type of Lean that a business gets talked about and the one most people think about when they talk about lean.

As an introduction to lean, let's look at some of the principles of Lean Manufacturing. The five principles of Lean. The Lean principle of continuous improvement means continually looking at ways to do things better. This does not mean that you throw out your old way of doing things and learn a new way at once. Rather, you always try to improve on existing processes and practices. Sometimes, this can even involve starting from scratch (instead of improving an old system), when that would be more appropriate for an existing system.

The next Lean principle is just as well known as the first: kaizen. Here, we talk about small experiments that can easily be implemented. The objective is to find a solution that is simple, repeatable, and easy to explain. A very important part of Lean is to eliminate barriers to the flow of information. In an organization with more than 10 people, having everyone in the same room is usually not a realistic expectation. In fact, it is much more effective if certain members of a team, who have special knowledge of the details, don't need to wait for others to explain what's going on. Kaizen means making work easier, rather than changing the process itself.

Finally, there's muda. This translates as waste. In a sense, it is the same as eliminating waste. In fact, the two are sometimes used interchangeably in the literature. To sum up, a lean manufacturer keeps everything that is unneeded and out of the way so that it is not an obstacle to progress.

What is the concept of lean production?

How is it helpful in an organization?

The concept of lean production can best be summarized as "production with people and materials" (Lean, 2008). The central idea is that production should be done with the least possible waste of energy, time, and material (Lean, 2008). Lean production is characterized by (a) a focus on value, and (b) constant awareness of quality requirements. These points provide some general context for an organization to be able to apply lean production successfully.

Lean production can be thought of as a response to various causes of waste in an organization. Wastes occur when production exceeds the requirements of customer needs. The most familiar types of wastes are:

Raw material wastethe cost of processing materials to meet production requirements, as compared to what it cost to develop products;. Administrative wastethe cost of making or recording information as compared to the value of information (information about customers, for example);. Management waste the cost of the executive process, for example, planning, scheduling, coordinating, and decision-making processes, as compared to what they contribute to organizational effectiveness;. Inventory wastethe cost of storing unused material as compared to what it could do. Lean production is a way of responding to these problems by taking an "extreme" approach that moves from "just sufficient," with just enough material and human resources, toward the goal of "not more than enough." A key element of this approach is to seek to eliminate the waste and therefore minimize the cost of making products and/or services. Lean production therefore focuses on the value stream, rather than on the supply chain, which defines the flow of materials from raw to finished products.

Figure 1: Lean Production Process Flow. Source: CSCS, "Production System Management," Used with permission. The following figure illustrates a simplified version of the basic ideas of lean production. Figure 1 also lists the main characteristics of lean production. Some organizations attempt to implement a system close to the ideal illustrated in the model, whereas other organizations are focused more on achieving the best result possible from their existing systems.

Figure 2: Typical Organization's Value Chain. Source: Adapted from M.

What are the 5 principles of lean manufacturing?

And are they truly 5?

There are more than 5!

Lean Manufacturing. There are four questions you must ask when starting to implement lean manufacturing. When your organization is in the middle of a transition, it's helpful to start by asking the questions.

What is lean manufacturing? (Is it as good as it sounds?). Who should be implementing lean manufacturing? (Are they the right people?). How much time will the change require? (Is there enough time?). What is the impact of the change? (Is it worth it?). This short blog was written by Dan Bower at the Harvard Lean Launch Pad (HLLP). Dan is a lean manufacturing consultant, lean manufacturing facilitator, and corporate trainer in both the United States and Europe. The blog answers the questions above.

The Lean Launch Pad is a professional development center where consultants and practitioners can work together to master lean manufacturing techniques. Our purpose is to increase the impact of lean manufacturing for our customers, partners and clients.

Before we start, let's make sure we have a clear picture of what lean manufacturing means. As John Shook, author of Lean Thinking states, Lean thinking, Lean process, and Lean systems are three of the most misunderstood terms in modern business.

Lean manufacturing is a manufacturing system that eliminates waste. Lean production systems reduce or eliminate non-value-adding activities. This allows companies to increase value while reducing costs. A lean manufacturing system looks like a warehouse and not a factory. Lean manufacturing is one of the many initiatives that help make lean production possible. Lean is about increasing the value of goods and services while decreasing costs. It isn't a fad.

Why consider lean manufacturing? Many products and services are no longer unique or special. Lean manufacturing helps to make them unique and special again. This is especially true for complex products and services. Examples of complex products and services include software, airplanes, machinery, buildings, and medical devices. There are hundreds of examples of successful lean manufacturing projects. From high-tech medical devices to software applications, lean is proving itself a valuable tool. One of the reasons is that it is very easy to apply, even for non-specialists. That's why we say that lean is easy!

Lean manufacturing is a complex subject and a lot of things can be said about it.