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Lean Manufacturing Supply Chain

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When we think about lean manufacturing we think about work cells, kanban cards, TQM and so on. But many people do a basic mistake. That is the mistake of not understanding the concepts on which lean manufacturing built on. Many people who copied lean manufacturing failed because they did not understood the concepts behind lean manufacturing.



We shall give a simple definition to lean manufacturing before we go further. Lean manufacturing can be defined as a systematic approach to continuously identify and remove the wastes from the system. All the tools and techniques are based on fulfillment of this simple requirement.

To identify the conceptual difference between lean manufacturing and conventional manufacturing, we will have a look at the definition given above. There is a very important word to note. That is “Removing”. Removing of waste from the system might not sound very different to minimization of wastes in the system, what we talk in conventional manufacturing. But think carefully. These two words are very different in the context of manufacturing (or even services).

When you think about minimizing of waste, you are thinking about the current system where you have wastes. You think about minimizing those wastes by fine tuning the system. When you think about eliminating or removing wastes from the system, you will have to find the causes for the wastes and remove them from the system. This means that you will have to redefine the process in a way that there are no wastes generated. So in the first case you live in the system where there are wastes, and struggle to get some improvement. In the later, you change the system so that system itself will not have the wastes. Aren't they really different?

I will give you one more example to clarify the conceptual difference between lean manufacturing and traditional manufacturing. Think about Work In Progress (WIP). In a traditional manufacturing process WIP is treated as an asset which helps to run the process smoothly. Lean manufacturing though, treats WIP as a waste itself. Further, lean manufacturing treats WIP as a mirror which reflects the imperfection of the system.

I can go on and on explaining conceptual differences these systems have. But it is very important to understand one thing about lean manufacturing. Lean manufacturing is not a fine tuning to the traditional manufacturing system you had. It is a completely different system. To be able to implement lean manufacturing correctly, understand the conceptual differences between lean manufacturing and traditional manufacturing.
Lean Manufacturing Supply Chain
Why? Lean manufacturing is known to be the processes, techniques, strategies and initiatives being implemented by companies around the world that aim to reduce unnecessary and unproductive tasks, activities and behaviors in the work environment.

Lean manufacturing not only reduces operational costs but also targets to boost, restore and significantly raise the competitiveness of a company.

There are several advantages of adopting lean manufacturing principles that you can look for if you are considering implementing lean manufacturing in your organization.

Reduction of Manufacturing Time:

When the manufacturing lead time is significantly lowered, the operational costs incurred from the use of utilities and wages from laborers’ time will also be significantly reduced.

Consequently, lean manufacturing assists companies preserve, maintain and notably increase their earnings, broaden their margins and help them generate savings from lower costs.

Reduction of Space:

One of the primary factors to keep of business in operation is working space. By adopting good lean manufacturing principles and techniques, it is estimated that the companies will reduce their physical floor space requirements by as much as 5% to 30%. Though the figure is small, significantly it will contribute to much more efficiency and savings of operation cost. That would be an advantage almost all businesses will surely look after.

Increase in Productivity:

From study and research, generally companies implementing and adhering to lean manufacturing practices significantly boost their manufacturing productivity up to 125%.

The reason is lean manufacturing will target mostly on time and efforts of the business operation. Thus, elimination of wastes, practices, behaviors and unnecessary and disturbing objects in the work place will surely and practically help workers get on to their tasks with much smooth pacing and comfort.

You know how it is when workers work without any distractions and interruptions. Productivity is very much maximized. Thus, lean manufacturing becomes a necessity for companies to be able to achieve that goal.

Increase Profit:

It follows that elimination and reduction of wastes will gradually and efficiently help boost and rise up earnings and profits in companies.

Thus, elimination of wastes and unproductive activities, objects, tasks and behaviors in the work place will surely help the company and its personnel focus on the requirements and demands of the customer. Nevertheless, lean manufacturing would be of great help to achieve a good customer or client relations.

Lean Structure of the organization:

In business and industry, you should understand that elimination of surplus and unnecessary job positions and tasks in a company is a sure way to help in reducing labor costs and eventually lead to generate savings.

Customer Satisfaction:

Finally, the primary advantage above all is that, when customer satisfaction is achieved, sales will surely rise. The best way to establish a good relationship with customers is to improve the products and services offered to them.

Lean manufacturing without a doubt brings that advantage of leanness upon organizations and companies practicing and adopting it. Lean manufacturing principles should really be implemented by companies. It is high time to reap its advantages.

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About Author
Both Aza Badurdeen & Fakhrul Anuar Malek are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Aza Badurdeen has sinced written about articles on various topics from Management, Manufacturing. . Aza Badurdeen's top article generates over 1600 views. to your Favourites.

Fakhrul Anuar Malek has sinced written about articles on various topics from Feng Shui, Manufacturing and Time Management Skills. Fakhrul Anuar is the webpublisher ofLean-Manufacturing.CosmoMatrix.com. For more information about the
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