lean, lean manufacturing, lean manufacturing principles, 5s lean

Remaining competitive is a top priority for any manufacturing operation. To stay ahead, companies must be knowledgeable about production trends contributing to their competitors’ success. One such trend in the manufacturing industry is the use of lean manufacturing principles that help companies clean up inefficiencies and work smarter. Learn more about what lean manufacturing is and the five principles helping manufacturers get ahead.

What is the Definition of Lean Manufacturing?

Lean manufacturing is a production method intended to eliminate waste and inefficiencies in manufacturing operations. Also known as lean thinking, this method is now being used beyond the manufacturing industry in countless businesses, to increase production and profits, reduce costs and improve quality. Due to the proven success of lean manufacturing principles, manufacturing companies around the world have adopted the method in an effort to better compete against lower-cost companies. 

What is the History of Lean Manufacturing?

The concepts of lean manufacturing were introduced on a large scale by Henry Ford. Ford explored ways to optimize production efficiency in his factories and was successful in creating methods that would increase production and product continuity. His downfall, however, was in creating product variety. Eiji Toyoda improved upon many of Ford’s processes to develop a method that improved production while also allowing for the variety consumers wanted. Toyoda and Taiichi Ōno coined the lean manufacturing principles that shaped the Toyota Production System. These principles were later explored and popularized in the book Lean Solutions by James Womack and Daniel Jones.

What Are the Five Principles of Lean Manufacturing?

The principles of lean manufacturing are foundational to Toyota’s success, but they can help manufacturers and various other industries create production processes that eliminate inefficiencies and create products of better quality that are more aligned with what consumers demand. The five lean manufacturing principles include the following.

1. Identify Value

The first principle of lean manufacturing is to identify what your customers value and how your products meet those values. The idea behind this principle is that manufacturers shouldn’t waste time, money, and labor on product aspects that customers don’t even need or want. By eliminating these wasteful steps, manufacturers end up with a product and process that incorporates only what’s necessary to please the customer.

2. Map the Value Stream

Next, you must identify the value of a product throughout its entire lifecycle. This involves mapping a product’s value from design to customer use to disposal. In doing this, you can better understand a product’s value and minimize production steps that do not contribute to value.

3. Create Flow

This step is about optimizing operations on the production floor to create a process without holdups. A product should be able to flow from production to shipping without interruption. To achieve flow, analyze how people, equipment and materials are used to identify ways the shop floor can be optimized. An improved flow results in reduced production time, inventory size and material handling.

4. Establish Pull

This principle centers on using a pull-based production system rather than one that is push-based. Push-based systems involve purchasing supplies and going through production even when there isn’t an order. This leads to large inventories and a lot of work in progress. Pull systems, on the other hand, begin with a product order. Materials are purchased and work is performed in response to orders, in order to reduce inventory, increase output, and eliminate overproduction and errors. A pull method also prevents inventory from expiring

5. Seek Perfection

Though seeking perfection may seem straightforward, it can be the hardest principle to adopt and maintain. Seeking perfection requires you to constantly improve. It can also require a culture shift throughout the entire operation. This Kaizen philosophy is often used to help companies create a culture in which employees seek perfection, focusing on small but valuable changes, instead of merely accepting the status quo. Over time, having the priority of perfection in all areas increases efficiency, productivity and quality. 

Examples of Lean Manufacturing in Action

Over the last several decades, lean manufacturing has not only transformed automotive manufacturing, it is now used in a variety of industries to improve production and profitability. Consider the printing industry, a field that has the risk of seeing a lot of waste. Printers often report storing large inventories, with a percentage of the final product ultimately being thrown away. To improve efficiency, identifying and mapping value can save considerable cost and limit printing to only what customers want. It can also support meeting delivery times.

Shift changes are an area that can accumulate revenue-losing downtime for many industries. For shop floors that have three shift changes a day, this can often result in well over an hour of downtime and lost production. By identifying where a better flow can be created, this disruption can be minimized and result in higher production per day, and therefore per year, to greatly improve a company’s bottom line. 

The benefits of adopting lean manufacturing principles can greatly improve almost any industry, resulting in:

  • Reduced inventory
  • Decreased spend
  • Improved efficiency
  • Higher quality
  • Reduced downtime
  • Increased production
  • Identified Total Manufacturing Costs

While learning and incorporating the basics of lean manufacturing can take time, the return is proven to be well worth it.

Implementing Lean Manufacturing Principles

There are different approaches and tools that are used in manufacturing that can help with the adoption and integration of lean manufacturing principles. For example, using 5S methodology, implementing a Quality Management System (QMS) and the use of an Enterprise Resource Planning (ERP) System can help promote efficiency and further streamline manufacturing processes. 

QAD’s next generation manufacturing & supply chain solutions help manufacturers become more adaptive, more agile, and more lean by giving companies full visibility across all operations and real-time insights into the health of each business area. These solutions allow manufacturers to remain competitive, trim waste and have overall better yield. Learn more about our ERP solutions and how we can help transform your business into a lean, optimized organization.

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