Benefits of Lean Production

Establishment and mastering of a lean production system would allow you to achieve the following benefits:

• Waste reduction by 80%

• Production cost reduction by 50%

• Higher → quality

• Manufacturing cycle times decreased by 50%

• Labor reduction by 50% while maintaining or increasing throughput

• Inventory reduction by 80% while increasing customer service levels

• Capacity in current facilities increase by 50%

• Higher → profits

• Higher system flexibility in reacting to changes in requirements improved

• More strategic focus

• Improved cash flow through increasing shipping and billing frequencies

However, by continually focusing on waste reduction, there are truly no end to the benefits that can be achieved.

→ Kaizen: 5 Principles

Basic Elements of Lean Manufacturing

The basic elements are waste elimination, continuous one piece workflow, and customer pull. When these elements are focused in the areas of cost, quality and delivery, this forms the basis for a lean production system... More

The lean production concept was to a large extent inspired by the → Kaizen – the Japanese strategy of continuous improvement. Employee empowerment and promotion among them of a way of thinking oriented at improving processes, imitation of customer relationships, fast product development and manufacturing, and collaboration with suppliers are the key strategies of leading lean companies.

Five Ss:  The Five Ss refer to the five dimensions of of workplace optimization: Seiri (Sort), Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain)... More

Lean Production Overview

Non-value added activities or waste are eliminated through continuous improvement efforts

Focus on continuous improvement of processes – rather than results – of the entire value chain

The lean manufacturing mindset: concept, way of thinking – not techniques; culture – not the latest management tool

Continuous product flow is achieved through physical rearrangement and system structure & control mechanisms

Single-piece flow / small lot production: achieved through equipment set up time reduction; attention to machine maintenance; and orderly, clean work place

Pull reduction / Just-in-Time inventory control

Characteristics of Lean Manufacturing Systems

• Close integration of the whole → value chain from raw material to finished product through partnership oriented relations with suppliers and distributors.

• → Team based work organizations with multi skilled operators empowered to make decisions and improve operations with few indirect staff... More

 Three Small- and Medium-Sized Firms, U.S.A.

Smaller and mid-sized organizations pride themselves on being nimble – quick to respond and to seize opportunities. Many believe smaller size is more manageable; and that internal communications in a smaller group can be maintained so employees can take ownership of more than their own corner of the enterprise. One key to success is maximizing resources and discovering inventive ways to overcome budget limitations. Another trend is moving from a PUSH system – building to forecasts – to a PULL system, building in response to orders... More