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.
Email 
WhatsApp 
Products
Unsecured business loans
Credit History
Home Loans
Finance Tips
Others
Life at Hero FinCorp