Lean Manufacturing is a production model that many businesses are aiming towards, especially those involved in manufacturing for export. The Lean Manufacturing model is a goal for any enterprise.
So why should businesses adopt the Lean model in production? Is it because this system includes tools and methods to eliminate waste in production?
1. Definition of Lean Manufacturing
Lean Manufacturing is a combination of methods, increasingly applied worldwide, aimed at eliminating waste and inefficiencies in the production process, to lower costs and increase competitiveness against manufacturers’ rivals. It enhances the ability to flexibly meet the constantly fluctuating and increasingly stringent demands of customers.
The LEAN manufacturing system has transcended the boundaries of traditional manufacturing industries to expand into service sectors such as healthcare, retail, tourism, banking, offices, hospitals, and administrative agencies.
2. Goals of Lean Manufacturing
The Lean Manufacturing model aims to achieve the same output with lower input, less time, fewer labourers, and less machinery, specifically:
- Reduce process time and production cycles by minimizing waiting times between stages.
- Improve plant layout based on efficient arrangement and movement of materials.
- Reduce the resources needed for quality control.
- Closer relationships with fewer suppliers, better quality, and more reliability.
- Use of electronic communication with suppliers and customers.
- Streamline overall product design to eliminate models and variants that do not add value to the customer.
- Design products with fewer and more standardized parts, suitable for customers’ customization requirements.
3. Benefits of Lean Manufacturing
Lean Manufacturing is a production strategy based on the techniques of the Toyota Production System. The strategy requires workers to engage in continuous small improvements to eliminate waste, enhance quality, and increase efficiency in the production process. The Lean production strategy focuses on customer needs regarding quality and delivery time.
Increase productivity and flexibility: In enterprises applying Lean, workers move each detail/component as soon as it is completed rather than waiting to move batches. Such a single piece flow assembly line increases productivity and flexibility in the production process. It also helps businesses reduce production time to quickly meet customer demands.
Eliminate waste: The Lean manufacturing method seeks to eliminate waste in all its forms, such as excess motion, inventory, and waiting time. Production lines are designed to minimize unnecessary movements between processes, and the single piece flow assembly line reduces waiting time between production steps. The Lean method helps eliminate bottlenecks that waste time in the production line.
Improve quality: Lean manufacturing eliminates waste by improving product quality and reducing the number of defective products. The single-piece flow allows workers to identify defective parts/components before large quantities of products are produced. Workers are empowered to stop production and make corrections if they detect a quality fault during production. The Lean manufacturing method introduces a work cell production model, meaning all activities to produce a product are completed in one area. This model encourages workers to monitor product quality as it moves through the line.
Reduce inventory costs: Businesses using this strategy aim to minimize the inventory costs of raw materials, work-in-progress, and finished goods. Additionally, by purchasing fewer raw materials, businesses spend less on warehouse rent and fewer labourers to manage. Conversely, businesses not using the Lean manufacturing strategy purchase materials based on their ability to predict customer demand, thereby causing waste and increasing inventory costs.
Boost employee morale: According to the University of California, Berkeley, when the Lean manufacturing strategy is successfully applied, workers are empowered to participate in product quality improvements, which boosts their commitment spirit. Conversely, workers lacking spirit lead to low productivity, high labour costs, and increased absenteeism. Reduced productivity and revenue can decrease the profits of a manufacturing business.