Significance of Lean Management in Manufacturing Processes Lean is used to describe organizations, business processes and functions such as manufacturing, distribution and supply chains that have a minimal amount of waste and maximum responsiveness. Lean organizations and businesses exhibit minimal waste in the below mentioned areas:
Transport and movement Inventory Motion Waiting Overproduction Over-processing of components Defects in products, services and business processes Human resource
Lean management The set of activities that start with raw materials and finish with a completed product in the customer’s hands come under lean management. The purpose of lean management is to create value for the customers. Process or activities that are not contributing towards creation of value are considered as wastes. Lean management is all about eliminating these non-value adding processes also known as wastes to maximize profit levels. It is a process which enables the organizations to focus on the needs of the customer by improving the quality of the product or the services. This business management process reduces wastes in a systematic manner without losing the business productivity.
For companies who want to embark on a lean manufacturing journey, it is critical to engage a consulting firm who is capable of supporting the journey from start to finish. Group50, a well-known lean manufacturing consulting firm has subject matter experts who understand the investigation, design and implementation of lean manufacturing and supply chain programs. They understand the change management process required to successfully implement lean programs that are both scalable and sustainable. Lean manufacturing efforts can be applied anywhere in a business but manufacturing, distribution and supply chains who focus on these areas of waste have the lowest cost, shortest lead times, highest quality and highly skilled people. Benefits of lean in manufacturing sector Waste elimination One of the key aspects of lean manufacturing is removing the waste; the nonvalue adding activities. Waste can occur in many forms such as waiting time, excess inventory, transportation and defects created due to equipment etc. With lean manufacturing tools, all the bottlenecks can be easily recognized and eliminated. Improved customer service The most important aspect of lean is to identify the customer demands and what is perceived as value by them. An organization’s success can be identified by its customers whether they are satisfied or not. With lean manufacturing, businesses can provide quality products to the customers at the right time and at the right price. Improved efficiency and productivity This approach builds an environment where employees get engaged with the managers and are answerable about their work. This makes the workforce feel valued and empowered to take decisions. When their efforts are recognized and
are focused towards delivering better quality products; efficiency and productivity will be improved. Financial gains When lean principles are properly utilized, they lead to significant financial benefits. The money saved from reduction in wastes can be utilized on the product manufacturing and its quality. Better product quality any day leads to higher profit levels. For leveraging all these benefits, consult lean manufacturing consultants like Group50. Companies who embark on implementing lean manufacturing and lean supply chains can typically expect 20-30% reductions in cost, 50% reductions in total inventory and 50+% improvements in quality. Contact them to understand your opportunities for significantly reducing waste, maximizing value and financial performance. Visit: https://www.group50.com/