What is Lean Manufacturing? Principles, Techniques, and 7 Wastes!

Lean manufacturing is one of the cornerstones of modern industry. Basically, it is a name given to efforts to minimize waste and increase efficiency. Originating in the Toyota Production System (TPS) in the 1950s, this methodology has permeated industries worldwide, revolutionizing the way organizations perceive and conduct their manufacturing operations.

At its core, lean manufacturing prioritizes value creation for customers while ruthlessly eliminating activities that do not contribute to this value proposition. This creates a leaner, more agile production environment. By adopting lean principles and techniques, companies can streamline their operations, increase productivity, improve product quality and ultimately deliver unparalleled value to their customers.

In this article, we would like to provide you with detailed information about lean manufacturing. When you read our article from beginning to end, you will have a lot of information about lean manufacturing.

What is Lean Manufacturing?

The concept of lean manufacturing revolves around the goal of maximizing productivity by minimizing waste. Waste is a term for anything that customers perceive as worthless and that they do not have to pay for. Lean manufacturing offers a range of benefits, including fast delivery, high quality products, and low cost, which are the primary expectations of customers. This approach can be applied in a variety of industries, including both product and service-based organizations.

Lean manufacturing, which emerged from the Toyota Production System, has been widely adopted by numerous companies, including Toyota itself. It was introduced to the Western world in 1990 with the publication of the book “The Machine that Changed the World”, which explored the future of the automobile industry based on Toyota’s lean production system. Since then, lean principles have had a significant impact on manufacturing concepts globally, extending beyond manufacturing to sectors such as healthcare, software development, and service industries.

What are Lean Manufacturing Principles?

Lean manufacturing is a systematic approach to streamline processes and eliminate waste in order to increase efficiency and productivity. It is based on a set of principles that guide organizations toward achieving operational excellence. These principles, also known as the “Toyota Production System” or “TPS,” serve as the foundation of lean manufacturing and are widely adopted by companies around the world.

Lean manufacturing principles are;

1. Identifying value: Lean manufacturing begins by understanding what the customer values and aligning the production process accordingly. It involves identifying the specific features or characteristics that the customer is willing to pay for.
2. Mapping the value stream: Once the value is identified, the next step is to map the value stream, visualizing the flow of materials and information from raw materials to the end customer. This helps identify areas of waste and inefficiency, allowing organizations to implement improvements.
3. Creating flow: The goal of lean manufacturing is to create a smooth and continuous flow of production by eliminating disruptions, bottlenecks, and rework. This involves removing unnecessary steps, balancing workloads, and implementing pull systems to ensure that the right amount of inventory is available at each stage of the process.
4. Implementing pull systems: Instead of pushing inventory through the production process, lean manufacturing promotes the use of pull systems. This means that each process only produces what is requested by the next process, based on actual customer demand. This allows excess inventory and waste to be reduced and, over time, eliminated.
5. Striving for perfection: Lean manufacturing is a continuous improvement journey. The focus is always on achieving perfection by continually refining and optimizing processes, reducing waste, and improving quality. This requires a culture of continuous learning and employee involvement in problem-solving.

By embracing these lean manufacturing principles, organizations can achieve significant improvements in productivity, quality, lead times, and customer satisfaction. These principles form the basis for implementing a wide range of lean manufacturing techniques and tools, which will be discussed in detail later in this guide.

What are Lean Manufacturing Techniques?

Lean manufacturing techniques refer to a set of principles and practices aimed at eliminating waste, improving efficiency, and maximizing value for customers. These techniques are designed to streamline processes and create a culture of continuous improvement within an organization.

Here are some commonly used lean manufacturing techniques:

• Value Stream Mapping: Value stream mapping is a visual representation of the steps involved in delivering a product or service. It enables the identification of areas causing waste and possible opportunities for improvement.
• Just-in-Time (JIT) Production: JIT production is a strategy where materials and resources are delivered to the production line or service area just in time for their use. This technique reduces inventory costs and minimizes waste.
• Kaizen: Kaizen is a name given to the practice of continuous improvement. It involves making small, incremental changes to processes and systems on an ongoing basis to increase efficiency and maximize value. It is among the most preferred lean manufacturing techniques.
• 5S: 5S technique is a method for organizing workspaces to improve efficiency and productivity. The five steps of 5S include Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu) and Sustain (Shitsuke).
• Single-Minute Exchange of Die (SMED): SMED is a technique used to reduce the time required for equipment setup or changeover. By minimizing changeover time, organizations can increase flexibility, reduce downtime, and improve overall efficiency.
• Poka-Yoke: Poka-yoke, which means “mistake-proofing” in Japanese, involves implementing mechanisms or safeguards to prevent errors or defects from occurring. This technique helps reduce waste and improve quality.
• Kanban: Kanban is a visual system used to manage and control workflow. It helps ensure that work is completed on time and in the appropriate sequence, preventing overproduction and unnecessary inventory buildup.
• Hoshin Kanri: Hoshin Kanri, a strategic planning methodology, initiates with executives outlining the organization’s long-term objectives in a top-down manner. Subsequently, there is a systematic communication process cascading through all levels of the company, ensuring that every employee is cognizant of the defined goals and understands the role their efforts play in advancing the overarching objectives of the company.
• Total Productive Maintenance (TPM): TPM is a methodology that involves providing comprehensive training to all operators within a manufacturing facility, enabling them to diagnose the maintenance requirements of their machinery to proactively prevent breakdowns and malfunctions. This empowers lean manufacturing organizations to maintain optimal equipment performance and minimize wastage.
• 5 Whys: The 5 Whys technique is a technique used in problem identification. It involves iteratively asking the question “Why?” to uncover the root cause of a problem. A problem is identified. “Why?” question is asked and answered 5 times. The most recent answer is considered the root cause. This approach helps leaders in lean manufacturing by collaborative brainstorming with their teams to identify the root cause and then develop potential solutions.

You may be interested: What is Value Stream Mapping (VSM)? Symbols, Tools and Examples

There are other lean manufacturing techniques than those mentioned above. By applying these techniques, organizations can achieve higher levels of productivity, reduce waste, improve quality, and ultimately deliver more value to their customers.

What are 7 Wastes of Lean Manufacturing?

The 7 wastes of lean production are;

1) Overproduction

Overproduction takes place when a greater quantity of goods is produced than what the market demands. This results in the inefficient use of precious resources such as materials, manpower, and storage capacity, without contributing any additional value. The consequences of overproduction include surplus inventory, prolonged lead times, and the potential for products to become obsolete. Lean Manufacturing, on the other hand, prioritizes the production of goods in alignment with actual demand, aiming to eradicate this wasteful practice.

2) Waiting

Wait time encompasses any period of inactivity encountered by employees or equipment in the manufacturing process. Causes of this inefficiency may include equipment malfunctions, shortages of materials, or inadequate planning. Waiting adversely affects productivity, prolongs lead times, and incurs additional costs. Lean Manufacturing strives to reduce waiting times by implementing efficient scheduling, adopting effective maintenance procedures, and enhancing coordination among different departments.

3) Transportation

Transportation waste takes place when there is excessive movement of materials or products between various locations or stages of the production process. Unnecessary transportation not only consumes time but also elevates the likelihood of damage or loss. Lean Manufacturing promotes the restructuring of production layouts, minimizing distances and movement to eradicate this wasteful practice. Additionally, it underscores the adoption of pull systems to deliver materials directly to the production line as needed.

4) Inventory

Having surplus inventory locks up capital and takes up storage space. Raises the likelihood of waste or obsolescence. It also conceals underlying issues, such as defects or production inefficiencies. Lean manufacturing advocates for the application of just-in-time (JIT) principles, ensuring that materials are supplied precisely when required. This approach diminishes inventory levels, enhancing flow and responsiveness while addressing the mentioned challenges.

5) Motion

Motion waste pertains to any unnecessary movement or action that employees must undertake to accomplish a task. This may involve reaching for tools, excessive walking, or searching for information. Motion waste results in fatigue reduced productivity, and an elevated risk of injury. Lean Manufacturing strives to optimize workstations and processes, eliminating unnecessary motion to enable employees to carry out their tasks with minimal effort and maximum efficiency.

6) Overprocessing

Overprocessing waste takes place when more work is performed than necessary according to customer requirements. This waste can encompass excessive inspections, redundant process steps, or the use of expensive equipment for straightforward tasks. Overprocessing introduces superfluous costs and time to production without providing additional value. Lean Manufacturing promotes the simplification of processes, standardization, and error-proofing as strategies to eliminate this waste.

7) Defects

Defects waste encompasses products or components that fail to meet quality standards, necessitating rework, repair, or scrapping. The presence of defects waste results in higher costs, dissatisfaction among customers, and the possibility of safety concerns. Lean manufacturing underscores the incorporation of quality into the production process, emphasizing prevention over detection. Employing tools such as root cause analysis and mistake-proofing techniques helps minimize defects and enhance overall quality.

Furthermore, apart from the aforementioned waste types, there is an additional waste type known as “unused talent or ingenuity,” that has been suggested by experts in lean manufacturing. This waste occurs when the perspectives and ideas of workers are disregarded during the identification of waste types and the enhancement of manufacturing processes. It is crucial to consider their input as they encounter problems daily. Workers can greatly contribute to the value stream mapping process.

To facilitate comprehension for your team members, these waste types can be classified into three overarching categories. These are;

• Mura: Mura refers to the unevenness or waste that occurs as a result of fluctuations in demand. This can be caused by customer requests or by an organization introducing new services, which leads to additional work that may not be efficiently managed.
• Muri: Muri, on the other hand, is the waste that arises from overburdening or trying to do too much at once. This is often a result of inadequate resource allocation, where too few people are assigned to handle a large workload. As a consequence, time is wasted as individuals switch between tasks.
• Muda: Muda represents non-value-adding work or process waste. It is a byproduct of other activities and can be categorized into three types. These are; value-adding work that directly benefits the customer, necessary waste that supports value-adding activities, and unnecessary waste that does not contribute any value. The concept of lean aims to maximize value, minimize necessary waste, and eliminate unnecessary waste.

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