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Sep 12, 2010

The Advantages of Lean Manufacturing

Lean manufacturing is the processes, techniques, strategies and initiatives being implemented by companies around the world that aim to reduce unnecessary and unproductive tasks, activities and behaviours in the work environment.

Because the times have really gone hard, demanding and intense due to political and turbulent concerns affecting all nations, firms are currently facing challenges to be able to keep their profitability and efficiency.

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

There are seven identified 'forms of waste' within the work environment and systems that lean manufacturing principally aims to alleviate, if not totally eliminate. These are over production, over processing, transportation, motion, inventory, waiting and scrap and defects.

Several advantages of adopting lean manufacturing principles

The first advantage identified by experts from implementing lean manufacturing techniques and strategies are the reduction of manufacturing time.

When the manufacturing lead-time is significantly lowered, it follows that the operational costs incurred from the use of energy, utilities and wages from labour's time will also be significantly reduced.

Thus, lean manufacturing helps companies retain, maintain and significantly increase their earnings, widen their margins and help them generate savings from lower costs.

Space is another area where lean manufacturing advantages are clearly and effectively exhibited. Working space, it is understood, is one of the primary and basic factors that keep operations of businesses going.

Labour and human resource experts estimate that adoption of good and effective lean manufacturing techniques and strategies will likely help companies reduce their physical floor space requirements by as much as 5% to 30%.

The figures involved could be small and miniscule for your eyes, but, actually, that will significantly contribute too much more efficiency and savings. That would be an advantage almost all businesses will surely look after.

The advantage in productivity

It is found that in general, companies implementing and adhering to lean manufacturing practices significantly boost and increase their manufacturing productivity by as much as 75% to 125%.

It is because time and efforts are principally targeted by lean manufacturing processes. Thus, elimination of wastes, practices, behaviours 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 maximised. Thus, lean manufacturing becomes a necessity for companies to be able to achieve that goal.

The advantages in terms of waste to profit relationships

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

Thus, elimination of wastes and unproductive activities, objects, tasks and behaviours in the work place will surely help the company and its personnel focus on the requirements and demands of the customer.

The advantage of that, 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 would be of great help to achieve a good customer or client relations.

Another advantage brought about by lean manufacturing techniques among various companies and firms adopting it worldwide is streamlined, rationalised or lean structuring of the organisation.

You should know that elimination of excess and unnecessary job positions and tasks in a company is a sure way to help that firm reduce labour costs and eventually lead to generate savings.

Lean manufacturing without a doubt brings that advantage of leanness upon organizations and companies practicing and adopting it.

Advantage on culture improvement

Various companies around the world are practicing and implementing different cultures. It is usually a cause of problems, conflicts and issues around and within the organization.

In lean manufacturing, the cultures are standardised, thus, unfavourable practices and behaviours of both the employees and the management are reduced, if not eliminated.

The greatest advantage of lean manufacturing in terms of cultures adopted by companies is that lean manufacturing makes the differences between management and personnel reach to a verging point.