Lean Manufacturing Explained: Definition, Principles, Wastes

Posted 10 months ago by Max Komonov

There are several schools of桂thought and桂practices regarding optimal manufacturing, with one of桂these being lean manufacturing. The idea of桂lean manufacturing is桂to桂focus on桂continuous improvement of桂processes and桂techniques to桂optimize productivity while cutting down on桂waste.

It桂initially stemmed from production systems crafted by桂auto manufacturers in桂the桂1930s but didn�셳 receive the桂lean manufacturing title until around fifty years later. Let�셲 take a桂closer look!

What is桂Lean Manufacturing and桂How Does It桂Work?

The central idea behind lean manufacturing is桂to桂improve efficiency by桂cutting down on桂waste. By桂waste, we桂mean processes, activities, and桂services that consume time or桂resources without bringing any桂value to桂the桂customer.

While this is桂a桂bit of桂a桂simplification of桂the桂entire process, the桂idea alone helps to桂create manufacturing that not only saves money for桂the桂manufacturer but also brings sustainable value to桂customers.

The 5桂Lean Manufacturing Principles

A桂book from 1996, titled , detailed five lean manufacturing principles that have become widely referenced.

These are as桂follows.

1.桂넝껸깜넵깎

Determine value as桂it桂is桂defined from the桂customer�셲 perspective. Businesses need to桂understand value from the桂customer�셲 eyes and桂the桂value they place on桂a桂product or桂service. In桂turn, this helps to桂clarify the桂price that customers are willing to桂pay for桂a桂specific product or桂service. The business must then work to桂cut down on桂waste in桂an桂effort to桂come closer to桂that agreeable price point.

2.桂Value Stream

The next step is桂to桂delineate the桂value stream of桂the桂product or桂끅깎곶국쓩낌깎�봧꾈 other words, the桂flow of桂actions, information, and桂materials that create value for桂the桂customer. Mapping this stream out helps a桂business define the桂points along the桂production line where they can work to桂eliminate waste.

Every point of桂the桂value stream should be桂mapped, from initial design to桂production, distribution, and桂more. Locating each point allows a桂business to桂examine that particular point for桂potential waste.

3.桂Create a桂Flow

The next step of桂the桂process is桂to桂optimize the桂value stream to桂create a桂continuous flow throughout. This means a桂flow where products are being completed close to桂the桂rate that they are needed for桂operations. Disruptions to桂production or桂supply, incorrect inventory forecasting, and桂more all lead to桂significant waste.

A桂good example of桂this is桂an桂overstock scenario, where so桂much is桂made that additional costs are incurred from storage fees or桂even where some inventory has to桂be桂disposed of.

4.桂A桂Pull System

A桂pull system means that new production is桂only begun when there is桂actual demand for桂it. This also places responsibility on桂the桂business to桂accurately forecast inventory and桂demand to桂ensure the桂right time for桂production. Of桂course, there is桂certainly a桂balance, as桂businesses don�셳 want to桂be桂left short-stocked either. That�셲 why accurate forecasting is桂vital.

5.桂Aspire to桂Perfection

The final principle is桂for桂businesses to桂always strive for桂the桂perfection of桂their manufacturing systems. In桂other words, consistently monitor production metrics, processes, and桂systems, to桂locate areas of桂improvement. Ideally, waste will continue to桂decline as桂businesses learn to桂optimize their systems and桂eliminate inefficiencies.

At桂the桂end of桂the桂day, this leads to桂reduced costs and桂waste for桂the桂business, which translates to桂enhanced value for桂the桂customer. In桂many cases, literal perfection is桂likely unrealistic, but this doesn�셳 mean the桂business should ever stop attempting or桂looking for桂further improvement.

The 7桂Wastes of桂Lean Manufacturing

So, now that we桂have an桂idea of桂what is桂necessary for桂lean manufacturing, let�셲 take a桂look at桂the桂types of桂waste a桂business can eliminate. There are commonly said to桂be桂7桂wastes of桂lean manufacturing. However, there is桂also an桂eighth that is桂often debated.

Let�셲 take a桂look at桂the桂primary seven first and桂then discuss the桂eighth. The 7桂wastes of桂lean manufacturing are:

Defects: Defects can lead to桂costly waste. Not only is桂it桂a桂loss of桂the桂raw material and桂production costs, but it桂can also lead to桂additional loss through customer returns and桂dissatisfaction.
Overproduction: Overproduction of桂goods is桂often a桂telltale sign of桂poor forecasting and桂mismanagement of桂demand. This leads to桂overstock that then causes further delays in桂the桂storage and桂management areas. Lean management in桂manufacturing needs to桂ensure accurate forecasting to桂avoid overproduction.
Waiting: Idle time from employees and桂machines causes disruption to桂the桂flow as桂mentioned above. Businesses are paying for桂waiting time through idle employee wages, power costs, and桂more.
Non-utilized talent: When employees with certain skill sets aren�셳 utilized, this can lead to桂inefficiencies across the桂whole value stream. One of桂the桂greatest lean manufacturing tools any桂organization has is桂their staff.
Transportation: Transportation requires a桂significant amount of桂resources through fuel, maintenance expenses, and桂man hours. Meaning, unnecessary transportation can rack up桂the桂waste through all of桂the桂above. This happens through half-loaded trucks, uncoordinated deliveries, and桂more.
Inventory: As桂discussed above, incorrect inventory management can easily lead to桂increased waste through storage and桂warehousing costs and桂difficulties.
Motion: Too much motion can easily cause delays and桂interruptions to桂the桂flow. This means unnecessary motion, so桂products or桂materials shouldn�셳 be桂getting shifted around or桂adjusted more than they need to桂be.

The eighth waste of桂lean manufacturing is桂Extra-processing. This one is桂sometimes debated because it桂essentially involves cutting down on桂what is桂delivered to桂the桂customer.

In桂other words, the桂product or桂service features deliver over what the桂customer is桂generally willing to桂pay for桂said product or桂service. So, while this is桂good for桂the桂customer, it桂is桂often unnecessary waste when it桂wasn�셳 asked for.

Moreover, it桂benefits the桂whole organization and桂the桂employees by桂cutting down production and桂processing time.

If桂you notice the桂bold letters throughout, that is桂because, with the桂eighth type of桂waste, it桂becomes an桂easy-to-remember acronym: DOWNTIME. This offers a桂perfect summary of桂what the桂8桂types of桂waste can lead to.

5S桂Lean Manufacturing

Another school of桂thought on桂lean manufacturing comes in桂the桂form of桂. This method is桂based on桂Japanese words and桂is桂designed to桂create an桂organized environment that is桂conducive to桂production.

The 5S�셲 are:

Sort (Seiri): Remove unnecessary tools and桂objects. Only leave tools and桂parts required for桂the桂primary purpose.
Set in桂order (Seiton): Organize the桂objects, tools, parts, and桂more in桂a桂neat way that makes them easy to桂retrieve and桂use.
Shine (Seiso): Keep the桂workplace clean.
Standardize (Seiketsu): Maintain regular cleaning and桂organization with daily schedules and桂activities.
Sustain (Shitsuke): Continue the桂five S�셲 by桂keeping the桂above four in桂place.

At桂first, this method can seem oversimplified, but it桂is桂excellent in桂practice. Following the桂above points can help to桂bring the桂workplace to桂a桂high standard that makes optimal production much more streamlined.

One example is桂needing a桂tool and桂having to桂look for桂it, which instantly creates wasted time. Instead, employees should know exactly where to桂go桂for桂what they need.

FAQ

What is桂lean manufacturing?

Lean manufacturing means manufacturing that focuses on桂optimal productivity and桂efficiency while reducing waste to桂the桂minimal amount.

What are the桂five principles of桂lean manufacturing?

The five principles of桂lean manufacturing are:

Value
Value Stream
Flow
Pull System
Aspire to桂Perfection

What are the桂types of桂lean manufacturing waste?

The types of桂waste are categorized as桂follows, and桂form the桂acronym DOWNTIME:

Defects
Overproduction
Waiting
Non-Utilized Talent
Transportation
Inventory
Motion
Excess production

Is桂there a桂lean manufacturing certification?

Yes! There is桂 offered as桂part of桂a桂partnership between the桂Association for桂Manufacturing Excellence, SME, and桂the桂Shingo Institute. Certification programs offer training, education, and桂development to桂help companies understand and桂apply lean practices to桂their production and桂activities.

How can I桂begin to桂implement lean manufacturing?

The first step in桂implementing lean manufacturing is桂to桂understand the桂above principles and桂types of桂waste.

Then, you can try starting with the桂5S�셲 of桂lean manufacturing. In桂addition, you should create a桂value stream of桂your business and桂analyze all parts of桂the桂stream to桂locate areas of桂waste and桂inefficiency that can be桂improved.

Wrapping Up

Lean manufacturing can be桂an桂excellent way for桂businesses to桂save money, effort, and桂time simply by桂reviewing their current operations. Although it桂may require some significant changes, these will benefit both the桂business and桂customers in桂the桂long run. The business will be桂able to桂deliver production more efficiently and桂customers will be桂fully willing to桂pay for桂the桂value of桂the桂product or桂service they are receiving.

We桂hope this article helps you understand lean manufacturing and桂its benefits. Will you start to桂implement lean manufacturing into your operations?

桂

About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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