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Understanding The Lean Manufacturing Principles

bizeditor — Fri, 04 Jun 2010 06:33:34 +0000

Understanding The Lean Manufacturing Principles

Companies are always searching for a more efficient way to run their business. Cost cutting is the most popular way of doing getting ahead of the competition. This ideal management setting can be achieved by practicing the lean manufacturing principles.

Lean manufacturing is the management philosophy of no waste. The focus is on reducing the seven wastes in the manufacturing business or any other type of business. The seven wastes are over-production, transportation, processing, waiting time, motion, inventory and scarp.

The lean manufacturing principles serve as the outline and guide for any company wanting to get the best out of their organization. The lean manufacturing principles are taken as the outline for making a more productive work environment, whether it is in a warehouse, factory or the office.

Perfect Time

The first of the lean manufacturing principles is the perfect first-time quality. This is a quest for having zero defects by revealing and solving the problems right at the source. By cutting all the wasted time during quality inspection at the end of the production process, efficiency is reached.

How does one achieve perfect first-time quality? By taking care of the problems at the source. Usually, after a through examination of how the usual production process is undertaken, the holes or inefficiencies of the process are exposed. After that, steps are taken to solve these holes immediately.

The end result of following the first of these lean manufacturing principles is that it reduces the time spent checking for product defects or organization faults because all the problems are addressed even before they can become a major problem for the company.

Get rid of waste

The second of the lean manufacturing principles is waste minimization. This preaches to eliminate all those activities or departments that do not add significant value and safety nets for the company. This means the resources of the company (people, capital and land) are put into better use.

Although this entails cutting off some workers, the option of reassigning them to departments where their talents can be utilized remains open. Often times, corporations, to justify mass lay-offs of their workers, use this second of the lean manufacturing principles. In reality, waste minimization is more effective when used in within the corporate hierarchy.

Never ending pursuit of the best

The third of the lean manufacturing principles is continuous improvement. As the title suggests, this principle focuses on continuous ways to improve the company. Finding the best way to do a task, reduce cost and improving product or work quality are examples of following this principle. At this point, any suggestions for improvement should be examined and, if proven to make the system more efficient, should be implemented at once. Information and tested knowledge govern the lean manufacturing principles.

Flex your muscles

The fourth of the lean manufacturing principles is flexibility. This requires foresight from management and a keen sense of the market trend. Flexibility means producing a mix or diversity of products quickly without sacrificing quality, even at low volumes of productions.

How can these lean manufacturing principles be followed? By having a sound business plan at the start of the year and closely monitoring the market. The business plan should be flexible enough to adjust for any increase in volume or to make a new product in a short time. Expecting the unexpected and handling it with grace can sum up these lean manufacturing principles.

Pull not push

Pull processing is the fifth of the lean manufacturing principles. Simply put, pull processing means that the products are pulled from the consumer end, not pushed from the production end.

It's all about relationships

The last of the lean manufacturing principles dictates the importance of building and maintaining a good, long term relationship with the company's suppliers/partners through different management tactics like collaborative risk sharing, information sharing arrangements and cost sharing.

By doing so, your company and theirs will grow together. As odd as this last of the lean manufacturing principles sound, it is by working with these people that your organization will achieve greater efficiency and the possibility of more job opportunities with your suppliers or partners is heightened.

Following these lean manufacturing principles does not necessarily mean a leaner, more productive organization. Just as having the map is important, so is the execution of the lean manufacturing principles. The creation of a sound plan and firm implementation that can make or break the effectiveness of these lean manufacturing principles.

Lean Manufacturing Certification

bizeditor — Tue, 11 May 2010 02:28:34 +0000

Lean Manufacturing Certification

A Simple Checklist to Obtain a Lean Manufacturing Certification

Life around the world, even in the first world and fully developed countries has really gone very hard. There are lots of concerns and issues that hound firms around the world. Unfortunately, these issues make companies' profitability and competitiveness at risk and declining.

Thus, experts, managers and human resources organizations have verged to come out with principles and strategies that are aimed at helping firms improve their earnings and keep operations.

Most firms now are starting to look at lean manufacturing to be able to keep with the changing and challenging times. Lean manufacturing principles are surely getting their way into various companies' door steps.

An lean manufacturing as a discipline is expected to stay, not just in the manufacturing industry, but also in all industries and sectors.

Insufficient implementation of lean manufacturing principles

The number of companies adopting lean manufacturing principles is surely and is apparently on the rise, no doubt about that.

But the thing is, firms adopting lean manufacturing techniques are most of the time, not achieving target and aimed results because they are not doing the strategies and techniques properly.

It is reported by experts and by some consultancy firms around the world that companies adopting lean manufacturing principles are most of the time not implementing across-the-board and significant progress.

These companies are found to not attain the performance and efficiency improvements they aim to achieve. It is like working out in the gym. If the form and processes of a person is not properly executed, he will only get tired but not achieve his desired physical result.

Insufficient and ineffective implementation of lean manufacturing principles and techniques will surely make the companies' efforts and capital infusion for the initiative futile and wasted.

Lean manufacturing certification

Because the problem of insufficient and ineffective implementation of lean manufacturing principles and techniques among companies are rising and rapidly concerning, organizations and experts around the world have agreed to set standards and gauge effectiveness of implementation of lean manufacturing principles.

To find out and determine whether companies are doing the right processes and techniques, and whether they are implementing maximized lean manufacturing techniques, industries gave come out with lean manufacturing certification program.

Lean manufacturing certification, just like any other standard check programs, categorize companies and identify those that are effectively implementing lean manufacturing techniques within their work systems.

Lean manufacturing is a sure way to make companies retain and achieve profitability. That is why, organizations and advocates feel bad if the targets and intent of the principles are not met. The primary aim of lean manufacturing certification program is to make sure the intent and purpose of lean manufacturing lived up.

A simple checklist for lean manufacturing certification

A company is expected to benefit and reap the advantages of lean manufacturing if its answers and responses to the following questions are on the affirmative.

Otherwise, the company should make sure it is qualified to get lean manufacturing certification by consulting experts and going through the whole process to make sure everything is done appropriately, properly and in the right pacing.

Here the questions companies should look into to review if they are qualified to get a lean manufacturing certification:

* Is the performance improvement aimed at by your company upon implementing the lean manufacturing principles been achieved?

* Is you company successful in applying and instilling upon workers the principles of lean manufacturing? Have the best practices been introduced and implemented?

* Is the structure of the company been made lean and practical?

* Are the target results that should come from the implementation of lean manufacturing techniques achieved?

* Are there no more room for improvements, or is the company now enjoying significant cost reductions from improved efficiencies and streamlined operations?

Lean manufacturing certification assessments

Companies adopting lean manufacturing principles are usually assessed and evaluated by standard organization to determine whether they are qualified for lean manufacturing certification.

In doing so, the companies' performances are subject to specially designed scoring system. Lean manufacturing certification's scoring system are established to review if companies measure up to high and world class standards and practices.

It is somehow similar to ISO, which has become, over the years, a standard quality assurance gauge in manufacturing facilities and businesses around the world.

Lean manufacturing criteria used to judge or assess companies adopting lean manufacturing principles are specially designed to allow experts and evaluators to rate and assign scores to the subjected companies.

Identifying The Wastes Named By Lean Manufacturing

bizeditor — Wed, 28 Apr 2010 08:06:34 +0000

Identifying The Wastes Named By Lean Manufacturing

Before we move on, let us first answer the issue raised by this article by identifying what the top seven wastes companies identified as the reasons for the production delays, gargantuan costs and, eventually, bankruptcy filings and hostile takeovers are.

1) overproduction
2) transportation
3) motion (processes that don't need to be conducted)
4) inventory
5) processing
6) waiting time
7) scrap and defects

Understanding what lean manufacturing is does not take rocket science to bear down to the basic concepts. Simply put, lean manufacturing is the achievement of the greatest efficiency and profitability for a company by eliminating the wasteful methods and activities that are commonly present in corporate regimes.

At first glance, some firms are intimated with the thought of adopting lean manufacturing because of its fancy sounding name. But, if truth be told, it's actually easier than seems. What you just need to have is the dedication and the discipline to see things through and make change happen.

These are the primary reasons why most firms often fail. For instance, with defects, instead of focusing on achieving the best quality output at the shortest period of time, some firms waste effort and energy into looking at and fixing equipment and method defects and problems. If the kinks had been addressed in the first place and the problem nipped at the bud, such an unnecessary activity would be eliminated.

To further sate your palate for a better understanding of lean manufacturing terms:

If a company wants to fully understand what lean manufacturing is, it should first familiarize itself with some of the prominent technical terms linked to it. Don't let these words scare you off.

Kanban System

This is a pull method that makes use of color-coded cards attached to parts to be able to ensure the smooth flow of the production process. A 'pull method' simply means the customer's interest is foremost, instead of you as the manufacturer dictating what the consumer should have.

Cellular manufacturing

This involves the linking manual and machine operation to achieve the most efficient and cost-effective combination that would extract maximum value from a certain activity and method, while reducing wastes at the same time. Cellular manufacturing is usually U-shaped and flows in a single pattern.

Value

This is what the customers is willing to pay for. It is the responsibility of the lean manufacturing strategy to deliver what the customer wants exactly.

Takt time

This is identified by the customers' rate of demand. The takt time is what sets the production pace and matches it with how badly consumers need the product delivered to them. It is often referred to as the heartbeat of lean manufacturing systems.

Pull system

This involves the replacement only of goods that have been used up or depleted.

The Five Principles of Lean Manufacturing

bizeditor — Mon, 26 Apr 2010 10:25:34 +0000

The Five Principles of Lean Manufacturing

All companies seek ways to improve their businesses. One of the most common goals of trumping the competition is cutting expenses, which can be best achieved through lean manufacturing strategies.

But before anything, let us first define what lean manufacturing is. Lean manufacturing is a management concept that supports the 'no waste' policy. These 'wastes' refer to the seven most common reasons for underproductivity and delay identified by companies all over the world.

They are inventory, over production, waiting time, transportation, processing, scrap and defects and motion. According to studies, most firms waste between 70% and 90% of the resources available to them. These happen when there are huge stockpiles of overruns, or when it takes ten activity levels to achieve something that can be done equally as good as when completed in three steps. The list can go on, but you get the picture.

The tricky part about implementing lean manufacturing principles is that most of the wastes identified are invisible, making their reduction and eventual eradication challenging. But with careful planning, lean manufacturing should be a walk in the park for your company

There are five core disciplines in lean manufacturing. Not all firms require their implementation, but at least one of which is necessary for the betterment, or 'leaning', of an organization.

1) team development
2) cellular manufacturing
3) six sigma and total quality management
4) rapid setup
5) pull scheduling

To complement the above, the following five lean manufacturing principles are what serve as guidelines for firms that want to maximize value out of their organization.

Out With Waste

Lean manufacturing principles focus on eliminating waste from the company. This means taking out unnecessary departments or redundant positions, or eradicating processes that just cause delay.

If it means terminating jobs, then do so. Lean manufacturing espouses that all resources, land, persons and capital, are used in the best and most efficient way they can be used.

Do It Right The First Time

Trial and error methods are simply a waste of resources and time. If enough effort is placed in carefully planning a certain manufacturing process, then there wouldn't be the need to start all over again, or settle with mediocre situations.

Always Seek The Best

Every company should always reach for the highest value that can be achieved. All the effort will be futile and major waste if this isn't done so.

Be Flexible

Lean manufacturing principles do not support stiff and linear thinking. If something needs to be improved and changed along the way, then do so at once, instead of contending with the original plan that has been eventually found to be resource and time-wasteful along the way.

Don't Push, Pull

Consumers should be given the freedom to decide what they want. As a manufacturer, you should impose trends or products to your clients. Rather, you should always be on the lookout for what will make your consumers happy.

Of course, adopting lean manufacturing principles does not always mean that your company is saved. It still takes careful planning, method-mapping and a lot of discipline to succeed. If your company is not wary of the consequences of strategies that are haphazardly implemented, then these lean manufacturing principles will be in vain — and total waste.

Getting The Most From The Tools of Lean Manufacturing

bizeditor — Thu, 11 Mar 2010 09:40:34 +0000

Getting The Most From The Tools of Lean Manufacturing

Lean manufacturing espouses the 'no waste' philosophy in managing the workplace and production processes. It does not know any company size. Whether it's a major corporation or a small group of five housewives with a cookie business, successful lean manufacturing techniques lies in its implementation and the discipline of those participating in it.

Experts say that lean manufacturing tools first gained popularity in Japan — a country best known for its highly unique and innovative approaches to a variety of things and methods, even with problem-solving strategies.

The success of lean manufacturing is determined by how implementing companies deal with and initiate ways to achieve maximum benefits from the resources available to them without having to spend too much. Success is also driven by the reduction and eventual elimination of the so-called wastes of corporate environments.

These wastes have been identified as: transportation (the movement of goods more than what is minimally needed), motion (employees working more than what is minimally required), defects (the efforts linked with inspecting and fixing problems), processing (conducting more work than what is actually needed), overproduction (leading to wasteful stockpiles) and inventory.

It is a fact that all firms need to reduce costs, what with rising energy prices and intensifying competition. Reading business journals, you can see that firms are filing for bankruptcy left and right, citing mismanagement as the most common cause of the Chapter 11 filings. Even the most stable companies have fallen prey to these. This is why lean manufacturing is starting to become the overhaul method of choice for firms wanting to get back on track.

The tricky part about implementing lean manufacturing tools is that most of the wastes identified are invisible, making their reduction and eventual eradication challenging. But with careful planning, lean manufacturing tools should be a walk in the park for your company

The following five lean manufacturing tools are what serve as guidelines for firms that want to maximize value out of their organization.

The Right Way, The First Time

Go Away, Waste

Lean manufacturing principles focus on eliminating waste from the company. This means taking out unnecessary departments or redundant positions, or eradicating processes that just cause delay.

If it means terminating jobs, then do so. Lean manufacturing espouses that all resources, land, persons and capital, are used in the best and most efficient way they can be used.

In Constant Search for the Best Quality

Every company should always reach for the highest value that can be achieved. All the effort will be futile and major waste if this isn't done so.

No Pushing

Exercise Flexibility

Lean manufacturing tools do not support stiff and linear thinking. If something needs to be improved and changed along the way, then do so at once, instead of contending with the original plan that has been eventually found to be resource and time-wasteful along the way.

Lean Manufacturing Explained

bizeditor — Mon, 01 Mar 2010 22:05:34 +0000

Lean Manufacturing Explained

There are various management approaches that focus on boosting and speeding up a company's operational viability and sales.

It is for this reason that companies all over the world are seeking unique strategies to improve their corporate environments and well-being, some of which have been so successful internally that other firms have taken to adopting the same or similar programs in their own realms.

One of such is the much talked-about lean manufacturing approach.

Lean manufacturing explained

What lean manufacturing basically aims to achieve is enabling corporations to raise their profitability and competitive edge. It seeks to introduce and adopt management and production improvements via the identification and elimination of behaviors and practices deemed unproductive and wasteful.

Lean manufacturing has been found to be right for all kinds of organizations and business set-ups, whether in the trading, service, manufacturing sectors, or any other types of industries around. It can even work in a small business setting that involves just a number of housewives with a home-based cookie baking venture.

Getting the right things done at the right time is what lean manufacturing is focused on. Aside from that is getting tasks completed at the right place and at the right quantity, while also lowering activities that are considered wasteful and time-consuming and boosting boosting worker productivity and flexibility. This concept is believed to have been espoused by mogul Henry Ford and further developed by the Japanese car maker, Toyota.

All about waste

It will not take rocket science to figure out that there are certain activities in business that lead to a waste of energy, time and resources. The philosophy that is lean manufacturing pays particular attention to the reduction and/or elimination of seven major wastes commonly identified by international companies.

Eradicating these said seven wastes promises to boost production quality, turnaround times and, eventually, lower expenses. The seven wastes include:

1. inventory
2. scraps and defects
3. over-production
4. motion
5. over-processing
6. waiting
7. transportation

Lean manufacturing places a prime on time. That's why this strategy is bent on improving work efficiency. Transportation, for instance, is an important part of production because through it goods and services and delivered to and from producers and consumers. What lean manufacturing does to address the waste that is transportation is seek maximum ways to lessen the travel time and equipment costs, particularly at a time of rising oil and energy rates.

Constant motion or movements must be kept to a minimum, therefore, not just to save on gas but also to save on energy. Unproductive employee hours and procrastination are some of the top things lean manufacturing aims to scrap from the list of tasks.

Once motion is significantly reduced to appropriate levels, then the waiting time will also be significantly lowered or maybe eliminated. Turnaround times become faster and more output will be delivered.

In addition, lean manufacturing also aims to eliminate the needs for constant repairs, which takes up precious time. That's why it is important for this strategy to keep all nuts and bolts in place and in check at all times, to eliminate the time inappropriately consumed by making repairs and the money wasted by always purchasing little implements.

To make it short, if an equipment needs to be replaced, then replace it. Don't just fix one small part and then pray that the other parts don't fall apart at some other time. Nip the problem at the bud.

Overproduction also presents a risk. Yes, you heard that right. Just because you went beyond your goal doesn't mean you've done better. Instead, you might actually have created a problem by introducing a glut to your inventory.

Stockpiles take up space. And if left unused for a time, get destroyed or supplanted by more recent versions. That's money wasted and space consumed.

In sum, what lean manufacturing does is take out wasteful activities in the workplace and replacing common practices with an as-is-where-is approach. Some companies might find it a little costly at the beginning, but, rest assured, the benefits will stay for a far, far longer term.

Lean Manufacturing LED Signs

bizeditor — Sun, 31 Jan 2010 02:51:34 +0000

Lean Manufacturing LED Signs

Lean manufacturing processes and systems have required the need for lean manufacturing LED signs or displays to be able to monitor and adjust the process flow within the business systems.

The principles and beliefs of the lean manufacturing system that was created by the Japanese have become accepted worlwide and have been so widespread that chances are a common layman could have heard something about it or are directly involved in some type or form of it.

The idea of lean manufacturing is that a business or company can divide its workforce into possible distinct processes or work cells that can be easily monitored and adjusted. These companies with an active lean manufacturing programs or systems have to understand the need to map and measure the every stage of their available value stream for each product or goods with the aim or objective of eliminating or reducing waste from every system or process.

The use of lean manufacturing LED signs will enhance a company's lean manufacturing programs. Using lean manufacturing led signs will quickly improve the effectiveness and efficiency of any existing lean manufacturing program by giving the business or company the ability to post the measurements exactly where they are needed most.

Some of the available lean manufacturing LED signs are the following:

1.The Alpha 7120 displaying plant efficiency data.

2.The Alpha 9240 displaying the overall shipping performance.

3.The AlphaVision PC displaying productivity information.

Using lean manufacturing LED signs can help a company to achieve the following targets:

1.About 40% – 50% reduction in the cycle time

2.About 25% – 35% reduction in the set up time

3.About 35% – 45% reduction in the down time

4.About 30% – 40% improvement in over all productivity

5.About 25% – 35% reduction in the WIP

6.About 35% – 45% reduction in the scrap

7.About 40% – 80% reduction in the travel distance

8.About 20% – 30% reduction in the floor space

Companies that are fully engaged in the lean manufacturing programs or systems needs to have lean manufacturing LED signs to be able to achieve results like these.

Key Lean Manufacturing Principles

1.Lean manufacturing define value precisely from the perspective of the end customer.

2.It identifies the entire value stream for each of the product line and eliminates waste.

3.Lean manufacturing makes the value added activities flow.

4.Lean manufacturing provides what the customer needs only when the customer demands for it.

5.Lean manufacturing pursues perfection through its continuous improvement.

The Cornerstones of an Effective Lean Manufacturing Program

1.To create an exciting culture. Using lean manufacturing LED signs will definitely create an exciting and dynamic culture.

2.To empower a participative environment. With the use of lean manufacturing LED signs, employees of business companies can readily participate in the continuous improvement of lean manufacturing processes and flows.

3.To provide and give meaningful visual measurements using lean manufacturing LED signs.

4.To organize a visual and orderly work environment. The use of lean manufacturing LED signs will promote the organization.

5.To encourage a continuous improvement of the learning environment. Using a lean manufacturing LED signs will promote a possible continuity of improvement.

What Are Visual Workplace Solutions?

Manufacturing enterprises have thought about it. How much did they spent on various information systems or equipment just to create great and efficient reports that willl be reviewed after the fact? The use of lean manufacturing LED signs will make the key elements of the various reports to be available to the employees or people that really has a need for them immediately or instantly.

With the purpose of supporting the key principles of lean manufacturing systems and programs, various manufacturers of lean manufacturing LED signs have produced a whole line or family of such lean manufacturing LED signs. These lean manufacturing Led signs are Visual Workplace Solutions or VWS that are designed specifically to be able to deliver key lean manufacturing performance metrics to the people or employees that requires them the most.

The lean manufacturing LED signs and displays are the performance scoreboards and indicators in order to achieve the impressive gains in a lean environment.

Lean Manufacturing LED Signs Performance Scores and Metrics

A business or company must put the right data in front of the employees or the right people and will yield or provide instant and immediate results and will improve the people morale at the same time.

The Lean Manufacturing Process

bizeditor — Fri, 29 Jan 2010 21:09:34 +0000

The Lean Manufacturing Process

Lean manufacuring process is a general term for a wide variety of manufacturing methodologies that are bent on maximizing the value and minimizing the waste in a manufacturing process.

The lean manufacturing process had its origin from the Toyota Production System in Japan. Most of the pharses and terms used in the lean manufacturing process such as kanban, kaizen and andon are Japanese terms that became standards in teh lean manufacturing process.

The Focus Of Lean Manufacturing

Basically, lean manufacturing is focused on value. What is value?

Value is defined in the lean manufacturing process as something that the customer is willing to pay for. Aside from this, all aspects of the manufacturing process is now deemed a waste.

So all processes that is included in the lean manufacturing process is focused on gaining value and reducing waste. The lean manufacturing process is seen as a tool that focuses all the resources and energies to the features with value and less on the features with no value.

Lean Manufacturing Process Is Customer Centric

Lean manufacturing process is customer centric. The term value that is defined in the lean manufacturing process is based on the definition of value from a customer's point of view.

Companies who have identified their customers and how they define the term value will focus all their resources on that particular value.

So basically, companies who observe lean manufacturing processes are manufacturing based on customer needs.

Through the use of lean manufacturing process, companies hopes to satisfy their customers and gain more revenue.

Lean Manufacturing Process Eliminates Waste

The lean manufacturing process eliminates waste. Waste is defined in the lean manufacturing process as anything that the customer is not willing to pay for.

So companies hoped for eliminating waste by conserving the process in manufacturing. Companies focuses on correcting the levels of quality and features of the manufacturing process. The companies hopes to make the manufacturing process "leaner" by eliminating unnecessary processes or loops.

In a lean manufacturing process, an inventory that is depleted is simply replenished, when a customer demands, the company delivers the product, all processes are monitored and checked.

Upon monitoring, the company will be able to have standard targets and will have an idea whenever the manufacturing process has reached its qouta or is higher or below what is expectant of it.

These figures will also tell the company of any loopholes that it needs to correct. By correcting these loopholes and avoiding any unnecessary items in the process, the process will be faster and more effective.

Basically, the equation for the actual cost of a product has changed since the advent of the lean manufacturing process. Previously, the equation is price of the product is equal to the cost of manufacturing and the expectant profit.

After implementing the lean manufacturing process, the equation is still the same but was seen in a different view. The profit is now equal to the sales price of the product minus the cost of manufacturing.

Lean Manufacturing Process Is Continuous Improvement

The lean manufacturing process also commits to the continuous improvement of the manufacturing line. Doing so will eliminate whatever process that can be eliminated as time passes by. Old processes will always be replaced by newer and better ones.

The lean manufacturing process is always open for changes and adjustments. As time passes by, more and more automation of processes will make the manufacturing process shorter and more robust.

Lean Manufacturing Process Is Effective

All in all, the objective of the lean manufacturing process is to satisfy the customers, increase the morale of the employees, and increase the gain of the shareholders.

The lean manufacturing process satisfies the customers because it provide their needs and deliver them on time. The lean manufacturing process satisfies the employees of the companies because it eliminates unnecessary and tiring process along the manufacturing line. Also, more and more automation of the processes will surely eliminate any human error along the process.

The lean manufacturing process satisfies the shareholders because it hopes to implement continuous improvements along the manufacturing line. The manufacturing process will be more effective and the company will have more revenue gain from this. More and more products will be able to be manufactured and yet the quality of the product is not tainted.

The Philosophy of Lean Manufacturing

bizeditor — Thu, 14 Jan 2010 01:36:34 +0000

The Philosophy of Lean Manufacturing

In the field of management, there are various approaches that principally aim to accelerate and boost corporate firms' revenues and operational efficiencies.

Progressive companies from around the world have been coming up every now and then different strategies for corporate improvement. Some of these schemes have been so effective that other firms have recognized and even adopted them.

One of these efficiency-focused philosophies is what is termed 'lean manufacturing.'

What is lean manufacturing?

Lean manufacturing is a holistic and strategic approach that aims to enable businesses and companies to improve and boost competitiveness and profitability.

Lean manufacturing aims to introduce and set in desired improvements through identifying, and gradually, eliminating wasteful or unproductive behavior and practices among employees and management.

The scheme called lean manufacturing is a program or methodology that could prove to be fitting and appropriate for all types of businesses or organizations. Lean manufacturing would be effective whether adopted by companies in the manufacturing, service, trading or other sectors.

Lean manufacturing is focused at helping companies get the right things, to the right and appropriate places, at the perfect or right time and in the right amount or quantity while at the same time, reducing waste and promoting productivity and flexibility among workers.

Lean manufacturing and wastes

It does not take a successful manager to assert that businesses and companies carry unnecessary and unlikely burden of wastes.

Lean manufacturing as a philosophy focuses on reducing the seven wastes commonly identified among global firms. Lean manufacturing attempts to help companies eliminate these unnecessary wastes to improve output quality, to maximize production and the time needed for it and mostly, to significantly save on costs.

The seven wastes lean manufacturing aims to slash and eliminate in the workplace are the following:

1. Over production
2. Over processing
3. Transportation
4. Motion
5. Inventory
6. Waiting
7. Scrap and defects

Over production, over processing and inventory

While some companies view over production in the positive way, most, especially those in the service and manufacturing sectors, take it as a manufacturing liability.

Over production will create a piling of inventory that would eventually create a problem in distribution because most warehouses have capacity limits.

What is worse is that over production and piling of inventories are the usual causes of price drops, which are deemed bad for the business by most firms.

The fundamental law of supply and demand will attest that if supplies are exceeding or too much, the demand tries to settle down or decline. Demands going down will mean prices rolling back or dropping as well.

Over processing is unnecessary because it takes so much productive time from employees and managers. There are many disadvantage of over processing and most of them seem pretty obvious to you. Over processing makes costs blow up.

Transportation, motion and waiting

Because time is an important element of productivity, lean manufacturing values it the most. Thus, lean manufacturing philosophy aims to boost efficiency.

Transportation is an essential element of manufacturing because through it commodities and merchandise are distributed to retailers, down to the consumers.

However, lean manufacturing mandates firms to maximize the use of transportation especially nowadays when oil prices are soaring.

Because energy prices are rising, and energy is what makes companies rolling, motion should be controlled. Lean manufacturing will have companies slash procrastination and unproductive hours among employees so as to increase and meet sufficient production targets.

If motion is made efficient, then waiting could be reduced if not eliminated. In lean manufacturing, waiting makes idle of people and it kills time that should have been used instead in productive measures and activities.

Scrap and defects

Lean manufacturing have it that if employees are efficient and if they are motivated, the quality of production would be greatly boosted. That means, the company will not have to spend costs on wages, energies and other capital just to produce defective items that would eventually rejected upon distribution.

While scraps and defects in production items are inevitable, companies adhering to lean manufacturing could always do something about it. Basic management principles have it that motivation is the most effective incentive to get workers doing the right and proper procedures in the work place.

All the seven wastes that are combated by lean manufacturing strategies are somehow interconnected with each other that eliminating one could lead to the elimination of the others.

Definition Of Lean Manufacturing

bizeditor — Fri, 01 Jan 2010 20:00:34 +0000

Definition Of Lean Manufacturing

Understanding what lean manufacturing is does not take rocket science, nor does it take a conference of ten experts to bear down to the basic concepts. Simply put, lean manufacturing is the achievement of the greatest efficiency and profitability for a company by eliminating the wasteful methods and activities that are commonly present in corporate regimes.

First up, let us identify what the top seven wastes companies identified as the reasons for the production delays, gargantuan costs and, eventually, bankruptcy filings and hostile takeovers.

1) overproduction
2) transportation
3) motion (processes that don't need to be conducted)
4) inventory
5) processing
6) waiting time
7) defects

These are the key reasons why most firms often fail. For instance, with defects, instead of focusing on achieving the best quality output at the shortest period of time, some firms waste effort and energy into looking at and fixing equipment and method defects and problems. If the kinks had been addressed in the first place and the problem nipped at the bud, such an unnecessary activity would be eliminated.

Definitions of popular lean manufacturing terms