The Benefits of Lean Manufacturing

by

According to the ASQ, lean is defined as “a set of management practices to improve efficiency and effectiveness by eliminating waste. The core principle of lean is to reduce and eliminate non-value-adding activities and waste.” When implemented effectively, the benefits of creating a lean workplace are vast and can enhance business productivity going forward. Adopting the systematic approach allows a business owner to identify any areas of waste and flawed processes that are not adding value, allowing them to be improved to streamline the way the company works.

Here are some of the key benefits of lean manufacturing:

Better quality output

By improving processes to cut out waste, key issues are tackled which in turn enhances the quality of the process, and thus the quality of the goods produced. By cutting out this excess waste, the likelihood of damaged products slipping through the net is minimized, which benefits the business and reduces the worry of customer dissatisfaction.

Reduce outgoings

By eliminating waste, the associated costs are also reduced which means the ongoing business outgoings are minimized. Whether costs are saved from wasted materials, overproduction, manpower, or repair works, these funds can be freed up and invested back into other areas of the business, allowing it to grow.

Increased efficiency

By improving productivity within the workplace, companies can achieve the desired results while cutting back on time and money, allowing them to focus their efforts elsewhere in the business. Reducing waste and improving internal processes means companies can produce goods with fewer resources, cutting down lead times so customers can receive their goods quicker.

Improve workplace safety

By making changes that improve processes and cut out waste, it is likely to also improve health and safety measures as any necessary safety products can be brought in. Analyzing the existing processes will highlight any ongoing issues which as well as being unproductive, could be causing potential risks and putting employees in danger. Lean manufacturing also involves speaking to the workers who are actively undergoing the processes in question, getting a better understanding which can help them discuss any safety concerns they have.

Happier employees

With a key aspect of lean manufacturing being the involvement of employees, spending time listening to workers can boost morale and make people feel heard. Listening to their feedback and making continuous improvements creates a culture of engagement and innovation, keeping employees motivated and empowered as they align with the company goals and help drive the business forward.

Flexible working

The approach of lean manufacturing means adapting to the surroundings and responding to changes in demand and external conditions instead of inaccurately planning outputs. This flexible way of operating means demand can be met, avoiding customer disappointment by underproducing as well as avoiding the waste and cost of overproduction. Lean manufacturing also means delivery times can be improved, speeding up orders to meet customer demand more easily and utilizing vehicles as best as possible.

Customer loyalty

As well as improving the business internally, adopting process improvements is bound to show to customers too. By cutting down on lead times, improving stock counts, and avoiding defective goods, the reputation of the business improves as customers experience good service every time. Through encouraging repeat customers, helps an organization get ahead of its competitors and enhance its market share.

Additional Resources

Related posts:

  1. What is Six Sigma?
  2. How to do Value Stream Mapping
  3. Four Principles Lean Management – Get Lean in 90 Seconds
  4. 5S Revealed – 5S and the Visual Workplace
  5. Introduction to the 8 Wastes of Lean Manufacturing
  6. Learn How Kanban Systems are Used in a Lean Manufacturing Environment
  7. The Toyota Production System
  8. Kaizen at Home – 90 Days to Success | Mike Morrill | TEDxUtica
  9. 5S Adhesive Red Tags – Tag Items without Tie-off Points