The Benefits Of Lean Manufacturing For Your Business

Idea Girl Media
July 26, 2020
If you made it to this article, you’ve probably done some research on business productivity and need more detail regarding…...
The Benefits Of Lean Manufacturing For Your Business featured image

If you made it to this article, you've probably done some research on business productivity and need more detail regarding lean manufacturing concepts. This article gives you five steps to follow for implementation...

What is lean manufacturing?

Lean manufacturing is an approach aiming to reduce waste, whether it is:

  • Wasted materials
  • Wasted money
  • Wasted time

A business might produce waste for many different reasons whether it involves materials, resources or logistics issues. While lean principles are most often applied to manufacturing, the concept is suitable for several industries.

Let’s consider the benefits of lean manufacturing for your business.

Less Waste

Lean principles focus on reducing waste at every level. With less waste your business will be more sustainable and productive.

Waste can occur across seven different areas, including:

  • Transportation
  • Inventory
  • Motion
  • Waiting
  • Over-processing
  • Overproduction
  • Defects

By adopting a lean management approach, you’ll stop waste occurring at all levels. There will be many changes that you can make to specifically reduce waste, from investing in a high quality conveyor belt system or adopting JIT manufacturing.

Save Money

It’s no surprise that waste costs you money, whether it’s wasted materials or time. Lean manufacturing principles seek to closely analyze every stage of your production processes.

The idea is to ensure that each area of your production is cost-effective. For best results, it may be useful to invest in lean management software.

Improve Productivity

Lean principles use a ‘5S’ approach which helps to boost your business productivity. The five steps are:

  1. Sort: First, take a look at all your materials and get rid of all the resources and equipment that you no longer use.
  2. Set in order: Next, organize your resources to maximize efficiency. 
  3. Shine: Thirdly, inspect and deep clean your areas.
  4. Standardize: Finally, create policies to help your team adhere to these standards.

How To Implement Lean Manufacturing Principles

To implement lean principles, businesses should evaluate waste and efficiency using the following steps.

Value: Define value. Have a thorough understanding of how much your products are worth to your customers. During this stage, you’ll learn how to price your products and services.

Value Stream: This refers to your product life cycle, including all stages from design to use and disposal.

Pull: The ‘pull’ concept reflects the ‘just-in-time’ manufacturing approach. This means that a product should only be made when someone has made an order. Naturally, your production methods needs to be highly efficient to make this work.

Flow: Companies must consider flow to reduce their waste. Flow is about keeping your value stream moving forward so that all production activities are in sync.

Perfection: To get rid of waste, your goal must be perfection. Companies should evaluate their quality and performance over time. Don’t forget to ask your team for feedback when you are seeking to improve your processes.

Final Thoughts

No matter which type of business you run, reducing waste can help you to improve your business efficiency and make larger profits.

6 Replies

  1. Karli Trujillo - QuartzMountain Gravatar

    By Karli Trujillo - QuartzMountain on

    Lean manufacturing offers numerous advantages for businesses seeking to streamline their operations and improve efficiency. One key benefit is cost reduction, achieved through the elimination of waste and optimization of processes. By identifying and eliminating unnecessary steps, companies can lower production costs while maintaining or even enhancing product quality. Another advantage is increased productivity, as lean principles emphasize the importance of continuous improvement and employee involvement in decision-making. This approach often leads to a more motivated and engaged workforce, resulting in higher output levels. Additionally, lean manufacturing can enhance product quality by emphasizing defect prevention rather than detection. By addressing root causes of defects, businesses can improve customer satisfaction and reduce rework and warranty costs. Overall, implementing lean manufacturing practices can lead to significant improvements in operational efficiency, cost-effectiveness, and customer satisfaction for businesses of all sizes.

    Reply to Karli

    • Keri Jaehnig Gravatar

      By Keri Jaehnig on

      Karli, You make a lot of good points about the advantages of lean manufacturing. Thank you for visiting my blog and adding your thoughts to our conversation here, ~Keri

      Reply to Keri

  2. reks devis Gravatar

    By reks devis on

    Great Post! This post is very useful & informative. I got too much information about Conveyors Manufacturers from this post. Thanks for sharing such a helpful post. Keep Posting!

    Reply to reks

    • Keri Jaehnig Gravatar

      By Keri Jaehnig on

      Hi there, Glad you liked this article about manufacturing and efficient business operations. Happy you feel it will be helpful for other readers. Thank you for sharing your thoughts and for your kind words, ~Keri

      Reply to Keri

  3. Sumit Jha Gravatar

    By Sumit Jha on

    Yes lean manufacturing is one of the best thing you can do for your industry. It will help you to cut down your expenses and raise your profit margin. Many industry are adopting this approach to make huge profit margin. We at RudraVinyl has similar approach towards our manufacturing unit. It has helped us to cut down expenses a lot.

    Reply to Sumit

    • Keri Jaehnig Gravatar

      By Keri Jaehnig on

      Sumit, Lean manufacturing can indeed improve profit margins and decrease expenses. It can also help move the needle toward other goals, such as environmental footprint. Glad you have seen success in your own manufacturing environment. Thanks for sharing your thoughts, ~Keri

      Reply to Keri

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