written by khatabook | February 15, 2023

Lean Manufacturing: Meaning, Principles, and Advantages

×

Table of Content


The production technique known as lean manufacturing aims to speed up production and supplier and customer response times. This method is popular for boosting productivity. The method increases productivity by reducing waste, streamlining procedures, and lowering expenses. The approach reduces waste and inventory expenses by creating what is needed and avoiding overstocking. The strategy enhances productivity and aids in raising profitability by shortening production time.

Did You Know? Businesses can save operational expenses and provide their consumers with items of the highest quality by implementing lean manufacturing techniques.

What is Lean Manufacturing?

A production method known as "lean manufacturing" is based on increasing productivity while reducing waste in a manufacturing operation. According to the lean philosophy, anything that doesn't bring value that customers are willing to pay for is considered waste.

Lean manufacturing refers to using lean techniques and equipment during the design and production of goods and products to reduce resource waste. Producers also use lean manufacturing principles to cut costs, improve procedures, shorten production cycles, and foster innovation.

Also Read: Top 10 Successful and Profitable Small Business Ideas in Kerala

Objectives of Lean Manufacturing Systems

Lean manufacturing aims to increase product quality while reducing production times, overall costs, and unnecessary waste.

  1.  Minimising Resource Waste

Lean processing seeks to minimise product inventories, eliminate resource waste, and streamline production procedures for optimal effectiveness. This aids producers in cutting waste and costs, enabling them to price their goods profitably while still offering maximum value to customers. This method of thinking about waste includes the actual squandering of raw materials and the wastage of intangible resources like time and employee effort. Inefficient transportation, excessive raw material processing, or manufacturing flaws are other potential causes.

  1.  Boosting Quality

Continuous improvement is the goal of lean management, which provides clients with the highest-quality goods. Additionally, it can facilitate product improvement and innovation. Businesses might evaluate a process again after some time has passed and make adjustments to find ways to improve it so that their customers receive the best possible service.

  1.  Increasing Capacity and Manufacturing Flexibility

A manufacturer can serve a broader market by boosting production agility without expanding their manufacturing facilities or making significant investments. A company's capacity to produce increases with increased agility. All production processes may work together harmoniously to produce at their highest potential with lean manufacturing.

  1.  Lowering Corporate Costs

Manufacturing costs can be decreased by eliminating waste, improving time management, and producing at maximum capacity. This makes it possible for businesses to maintain their competitiveness in the market and provide high-quality goods at cheaper prices. Additionally, it enables companies to boost revenues, deliver superior customer support, and make substantial investments in creating new products.

  1.  Enhancing the Working Environment

Using elements of lean principles improves the working environment and boosts production. It produces an environment where workers feel safe and content with their employment. Better compliance and safety regulations are also encouraged by lean manufacturing, making the workplace safer for workers.

Also Read: How To Start A Scrap Business In India?

Principles of Lean Manufacturing

The five guiding principles of lean manufacturing are value, the value stream, flow, pull, and perfection. These are now the cornerstones of implementing Lean. 

  1.  Value 

Value is established from the viewpoint of the consumer and pertains to the price point at which they are prepared to pay for goods or services. In order to reach ideal pricing for the client while still maximising profits, the manufacturer or service provider should work to reduce waste and costs.

  1.  Map the Value Stream

To find waste and make changes, this approach entails examining the materials and other resources needed to produce a good or service. Value stream includes every stage of a product's lifecycle, from raw materials to disposal. Hence, chain alignment is frequently advised.

The manufacture of a physical product is only one component of a larger work stream in today's often-complex manufacturing streams that involve the collaboration of engineers, scientists, designers, and others.

  1.  Create Flow 

Creating flow entails providing a continuous stream for the production or distribution of services since interrupted and discordant industrial processes are expensive.

  1.  Create a Pull System

A pull system only starts working when there is demand for it. Push systems, which are employed by manufacturing resource planning systems (MRP), are the basis for this concept. Push systems establish production to fulfil these sales or production estimates while determining inventories in advance. 

  1.  Perfection 

Lean manufacturing calls for continuous evaluation and enhancement of processes and procedures to establish the ideal solution for the value stream. Continuous improvement needs to be ingrained in an organisation's culture and measured using metrics like lead times, production cycles, throughout, and cumulative flow to have a significant and long-lasting impact.

To foster a sense of shared accountability for value creation and improvement, the culture of continuous improvement must permeate an organisation at all levels. This includes team members and project managers up to the executive level.

Also Read: Small Business Ideas for Villages and Small Towns in India 2023

Advantages of Lean Manufacturing

Understanding the definition of lean manufacturing can make it easier for you to appreciate why it is so important for corporate operations. There are several advantages of lean manufacturing. 

  1.  Time and Money Saving

Cost-saving is the most obvious benefit of lean manufacturing. No matter the size or output of the firm, more efficient processes, resource allocation, manufacturing, and storage can benefit production. Reducing lead times and offering products to consumers more rapidly improves service and reduces costs by enabling a more efficient workforce.

  1.  Environmentally Responsible

The costs associated with energy and fuel use can be reduced by eliminating wasteful operations and reducing the waste of time and resources. The deployment of more energy-efficient equipment, which can also result in cost savings, has a clear environmental benefit.

  1.  Enhanced Client Satisfaction

Consumer satisfaction is increased when a product or service is delivered to a customer more effectively and affordably. This is crucial for the success of your company since satisfied consumers are more likely to use your product or service again or to refer it to others.

Conclusion

Lean manufacturing is a system that can aid in streamlining and enhancing production procedures or other services to offer clients improved advantages. Lean as a methodology works best when implemented throughout the entire organization, with ongoing evaluation and adjustments made with the help of staff members at all levels. Lean manufacturing emphasises eliminating waste from the production process, ongoing development, and providing value to the client. Excess inventory, ineffective procedures, underutilized production facilities, and idle staff are a few examples of investments or resource waste. 

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What is the Lean Methodology?

Ans:

Healthcare, manufacturing and other industries apply the lean approach. Through particular fundamental ideas, businesses try to produce a seamless flow of flow. Lean methodology's fundamental tenets are continuous improvement and value stream.

Q: What are the disadvantages of Lean Manufacturing?

Ans:

The main disadvantages of lean manufacturing are:

  • Focusing on efficient procedures leaves little room for error.
  • There is no room to predict changes or employ novel tactics with such a focus on the present.
  • Imposes a "buy-in" requirement on all staff, without which output will suffer.

Q: What are the five main elements of Lean Production?

Ans:

The five foundational pillars of lean are value, value stream, flow, pull, and perfection, according to Womack and Jones.

Q: What does the word Lean mean?

Ans:

Lean is a collection of management techniques that aim to reduce waste and increase productivity. Lean's basic tenet is to minimize and eliminate wasteful activities and processes.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.