Why is Lean Manufacturing or thinking so prevalent in the modern current economies of scale? To remain competitive, agile and the lowest cost producers, providers and streamlined business, getting rid of waste and being highly, consistently and sustainable is key for survival and thriving in this new economy.
Lean manufacturing or thinking is exactly what the name sounds like - it is about 'cut to the bone', fat-trimmed, streamlining operation and organizations.
Lean thinking is a set or collection of 'efficiency tools' that you can unleash in your business to save money, reduce cost and waste and deliver consistent and effective service that is affordable and pleasing to your customers. It is about vision and tools for reducing variability and cutting down on waste, being efficient and running a smooth and competitive, even profitable operation, well.
The thinking was initially championed by pioneers like Toyota and it was eventually adopted by the Japanese automakers as the principle upon which they wanted to build, run and grow their businesses. Only a little later, will the Western world catch onto the value and potential of this approach to their respective organizations and operations.
Some have referred to lean manufacturing as the TOYOTA PRODUCTION SYSTEM, or JIT (just-in-time) manufacturing, paying attention to things like flow productions, line operations, value streams, Kaizen. In any lean manufacturing process and approach there are a couple of things to pay attention to. There is discipline, planning, rigor, scientific approach and statistically-based tools required and applied to make this business paradigm fit, work and last.
Lean manufacturing will help you in your business take a serious look at visible causes and effects in your business. Aspects that could get some attention could include things like:
(i) inventory
(ii) movement/motion
(iii) waiting or queues
(iv) broken machines or tools (missing)
(v) dirt and clutter
(vi) noise
... and many others.
Things that we can see that is obvious waste or inefficiencies attract attention and demand action. This is where lean manufacturing steps in and makes the difference. It deals with the problems that we can actually SEE and do something about.
True to its Japanese origin there are lots of 'legacy' terminology here, one of which is MOST appropriate as we start this discussion on lean tools and the implications for your business:
It is referred to as MUDA, essentially meaning WASTE. In any process and business there are EIGHT forms of MUDA/WASTE present:
(i) Making products, delivering service that no-one wants OR NOT MEETING USER NEEDS (useless)
(ii) DEFECTIVE products or flawed services (mistakes)
(iii) Making too much of something (overproduction)
(iv) Inventory
(v) Unnecessary processing (non-value added steps)
(vi) Unnecessary movement of people
(vii) Unnecessary movement of things
(viii) Waiting or queuing
There are many reasons people would want to use lean manufacturing in their organization or business
(i) breakthrough performance
(ii) increased quality
(iii) shorter cycle times
(iv) creating shareholder value
(v) applying the principles throughout every level of the organization
When you focus on any improvements for production and profit you will have to pay attention to the saying 'time is money' and 'quality matters'. These two principles and fundamental pillars for lean manufacturing will reward you greatly if considered in all aspects and areas of your business.
- Achieve cost reductions on your terms
- Cut lead/wait times within a short period of time, in a planned fashion using lean tools to get you there!
- Cut down on processing time from start to finish, from the moment and order is placed to when it is shipped and delivered, (also called cycle time).