The Benefits of a Lean Manufacturing System

Lean manufacturing is a buzzword that gets used a lot, but what does it really mean and why should you care?

Lean manufacturing is about eliminating waste and removing superfluous processes. It means having the ideal number of associates, trimming the fat, and making sure that everyone can get the most amount of work done in the least amount of time.

In short, it’s a systematic approach to improving efficiency, quality, and productivity. Here are a few ways that lean manufacturing can help improve your operation.

1. Increased Productivity and Efficiency

When you think about it, every minute, dollar, and square foot of your facility is a resource. A lean mindset means getting more done with less. It doesn’t mean going without, it means working with only the equipment, resources, and personnel that you need.

Imagine a manufacturing line where every step is necessary and efficient. There’s no wasted motion, no waiting for parts, and no unnecessary rejects or rework. By identifying and eliminating all the “wasteful” activities, you free up time and resources to focus on what truly matters. Creating value for your customers and profit for your bottom line.

2. Improved Quality

Stacks of steel pipes that represent a lean manufacturing system.
Steel material. Free public domain CC0 photo.
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Lean manufacturing also teaches us to build in quality from the start instead of inspecting for defects at the end. After all, there’s a lot of waste when you discover through random spot-checking that your entire output for the day is defective, all because someone early up on the line wasn’t quite on their game.

By reducing errors and fixing your processes, you’re not only improving your product quality, you’re also saving money on the rework and scrap from defective products. Lean manufacturing also emphasizes the use of visual controls and standardized work, which prevents defects from happening in the first place.

3. Reduced Costs

Lean manufacturing also means you’ll cut costs across the board: less inventory, less rework, less waste, less energy consumption, and less scrap. These cost reductions all increase your profitability because you’re not wasting money, paying extra disposal costs, or extra labor hours to re-run the same bad products as before.

Overproduction is a form of waste because you have the extra costs of storing excess inventory. And lean manufacturing reduces lead times, which means you can respond faster to market changes and avoid costly rush orders.

4. Better Delivery Performance

With a more efficient system, you can respond faster to customer demands. If a customer needs a product quickly, you can identify the necessary resources, prioritize the order, and get it out the door faster. This builds customer loyalty and trust.

This not only helps you respond to customers more quickly, but if you’re ever asked to rush an order, that won’t throw your entire system into disarray. You’ll be able to more easily adapt because you’re not already rerunning bad batches and fixing messed-up orders.

5. Increased Flexibility

A lean manufacturing system adapts more quickly to changes in your customers’ demands or market conditions, which gives you a competitive edge. You can adapt by reducing lead times and minimizing batch sizes. This lets you take advantage of new opportunities and outmaneuver your competition.

Implementing a lean manufacturing system takes commitment, leadership, and the involvement of everyone in the organization, but the rewards are well worth the effort.

It’s a deep and complex topic with countless nuances. It’s like the old Mastermind board game: “a minute to learn, a lifetime to master.”

With the right mindset, commitment from leadership, and a focused approach, you can turn your manufacturing operation into one that has little-to-no waste and increased profits.

I’ve been a manufacturing executive, as well as a sales and marketing professional, for a few decades. Now, I help companies turn around their own business, including pivoting within their industry. If you would like more information, please visit my website and connect with me on Twitter, Facebook, or LinkedIn.

Photo credit: RawPixel (Creative Commons 0)



Author: David Marshall
I’ve been a manufacturing executive, as well as a sales and marketing professional, for a few decades. Now I help companies turn around their own business. If you would like more information, please visit my website and connect with me on Twitter or LinkedIn.