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Lean Manufacturing: Key Concepts and Implementation Strategies

Lean Manufacturing
Every production and manufacturing unit aims to earn profit from the available resources. These resources could include people, raw materials, machinery, tools, and techniques. Some units are able to turn the resources into massive profits while others struggle. One technique units can employ to increase their chances of earning more is lean manufacturing.
 

What is Lean Manufacturing?


Lean manufacturing is the application of the principles of lean practices and tools to a manufacturing or production process. The ideology behind lean manufacturing is maximising productivity and minimising waste.

In the lean principle, waste is anything that doesn't add value to your products.
In this article, we will talk about lean manufacturing in detail.

Read More: A 2-min Guide to Collateral Free Business Loan 
 

How Does Lean Manufacturing Work?


The core principle of lean manufacturing is to eliminate waste and improve the manufacturing process. It also requires design changes that can improve the flow of materials and information. As a result, organisations can provide‌ better customer service, faster turnaround and lower costs.

A lean manufacturing system delivers value to your customer by reducing waste and improving the process.
The types of waste include -
  • Processes
  • Activities
  • Products
  • services

As the above requires time, money and skills, they do not create value for the customer if underused. So, removing inefficiencies streamlines services, reduces costs, and ultimately provides savings.
 

Lean Manufacturing Techniques‌ to eliminate the waste


In lean manufacturing, specific tools and techniques ‌come into use to identify and eliminate sources of waste, including:

  • Just in Time

    The technique involves producing and procuring material and components only when needed in production. So here, your company ensures you do not incur high costs in warehousing and storage of inventory. And when that happens, it eliminates the need for additional resources, such as hiring employees to manage that inventory.
 

  • Total Quality Management (TQM)

    This lean manufacturing management system focuses on ensuring product quality. And the same should be maintained throughout the production process. This includes monitoring the quality of the raw materials, ensuring the equipment is adequately maintained, and following the production process. Implementing rigorous inspection and testing processes is also a part of this.
 
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  • Kanban System

    This visual production system is used to control the flow of materials in the production process. Here visual cards, boards and signals come in use to indicate when a production process starts and finishes. This way, you can ensure that the production process is efficient and the quality is well maintained.
 

  • Cellular Layout

    This is a production system that divides the factory into workstations as per their roles. Each cell is designed to produce a specific product, arranged in a way that allows efficient flow. This lean manufacturing system helps reduce the time and resources required for production.
 

  • Total Productive Maintenance (TPM)

    TPM focuses on preventing breakdowns in the production process. It includes activities such as regular inspections, maintenance and repair of machines. As a result, downtime is reduced, and production processes become efficient.

The underlying principles of lean manufacturing are based on minimising waste and maximising customer value. It is all about creating a 'pull' system of production and delivery‌ that gets a steady production flow and reduces the need for large batches of inventory.

Read More: What are the different types of Business Loans available in India?
 

Steps for Lean Manufacturing


Continuous improvement requires a filter and should be done through all levels, from team members and project managers to the executive. To create a collective responsibility for improvement, and value creation, follow lean manufacturing concepts.
 

  1. Identify Value

    Identifying the value from the customer's perspective and then perfecting that value helps in the process.

  2. Establish Pull

    Setting up the production process so that only what is needed is produced when needed. If you decide on this, there will be less waste of money.

  3. Pursue Perfection

    Constantly striving to eliminate waste, improve quality, and increase efficiency means giving your all to improve the production process.
 

A Business Loan from Hero FinCorp can help map out the possibilities by providing the required funding for the processes without affecting the company's cash flow.

 

Conclusion


Looking to boost profits and streamline your production process? Lean manufacturing may be the answer you're looking for! By applying the principles of lean practices and tools, maximise productivity and minimise waste.

Lean manufacturing techniques can help lower costs, ensure faster turnaround times and provide better customer service. The various techniques and tools you can use are - just-in-time, total quality management, kanban systems, cellular layouts, and total productive maintenance.

To get started with lean manufacturing, it's essential to follow the steps of identifying customer value, streamlining your production process; establishing a "pull" system. And if you need any financial assistance to make it happen, we've got you covered with our Business Loans.

So it’s time to take your manufacturing or production unit to the next level by embracing the power of lean manufacturing and maximising your profits!
 

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Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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