Lean Manufacturing Definition
Lean manufacturing definition refers to a method of production, that manufacturers can use to lower production system time and improve efficiency. When a company adopts a lean manufacturing strategy, it means it intends to increase production while cutting out as much waste as possible. The method is based on five principles.
What are the 5 Principles?
Identify Product value: Product cost is estimated from a customer’s point of view and refers to how much they are willing to pay for goods or services.
Tracing the value stream: The value stream refers to the actions that occur when adding value to a customer from its initial requirement. By tracing this stream, opportunities for product improvements may arise while product waste from the materials and other resources used in the manufacturing of the product will be decreased.
Maintain a steady flow: Achieving a good flow on lean manufacturing might seem difficult. However, maintaining a steady flow while avoiding a breakdown in it, equals a decrease in product waste.
Develop a pull system: Producing only the value that your clients actually require.
Continuous improvements: the goal is to consistently enhance every process in your team by focusing on improving the activities. That adds the most value to your customers while eliminating as many wasteful activities as possible.
- Consumer satisfaction: Consumer satisfaction is increased when a product or service is delivered to a customer more effectively and affordably.
- Increase profits and saves time: Time savings provides shorter lead times and better service in delivering items to clients. It also assists to save money by allowing for a more streamlined workforce.
- Eco-Friendly: Reducing unnecessary processes and minimizing resource and time waste can lower the costs associated with energy and fuel use.
- Weak Strategic Focus: Many companies implementing lean place more of an emphasis on tactics than on strategy. They do this at the expense of the greater picture. As a result, the organization struggles.
- Complicated to Standardize: This may give the impression that lean is a weak and nebulous approach rather than a solid one.
- Supply issues: Lean manufacturing relies largely on suppliers who can consistently and uninterruptedly supply goods for the production process. That’s because it only keeps a minimal quantity of inventory on hand.