7 things about Lean manufacturing that is invaluable

Posted by Jonathan Davies on 26 Aug


Lean manufacturing is all about maximising productivity while minimising waste in your manufacturing systems. Removing this waste is the basis of lean manufacturing. Here are seven benefits of using lean manufacturing.

Prevent waste

Lean manufacturing is all about using customer expectations to define value by looking at the services they expect. One main benefit of lean manufacturing is that it prevents waste, as manufacturers work to identify and eliminate any instances of waste within their processes. When used correctly, lean manufacturing can help reduce waste from happening. Furthermore, lean principles can increase quality, as it is about attention to the details as well. Processes will be optimised, saving time and money in the long run.

Grow your business

Lean production processes allow you to offer your customers lower prices, shorter lead times, and greater reliability. In doing so, you will look advantageous compared to your competitors. These factors will enable you to expand your business further, attracting even more customers.

Financial benefits

There are many positive financial benefits of using lean manufacturing. Firstly, the reduction in waste will immediately boost your profits. By reducing the amount of work in progress and finished goods you have, you can instantly reduce your borrowings from the bank, or cash tied up in the stock. By improving efficiencies, the output can increase with the same overheads, which will increase your profits.

Improve back-office processes

Back-office processes can be improved by lean manufacturing as when the principles are applied, it can cut costs by using the minimum amount of resources required for specific tasks. By using only the essential materials, capital and people, lean prevents your business from getting dragged down in paperwork, error correction and record management.

Improve productivity

Lean manufacturing can increase productivity through the introduction of maintainable and easy-to-apply techniques and tools. Integrating waste reduction into the company culture transforms every process into profit. It involves examining processes, with the perspectives of various leaders within the company, and mapping which processes provide value to the organisation. These structured plans ensure that no time is wasted, thereby maximising productivity.

Improved customer relationships

Lean manufacturing focuses specifically on loyal customers. By identifying what the customer perceives as value, you can ensure that they are satisfied. This allows you to build a strong and stable relationship with your customers, which will help retention and a steady flow of revenue.

Lean infrastructure

By making your infrastructure lean you only have to deal with a few components to fulfil inventory demand. These include tools, building, equipment, supplies and labour. Inefficient use of physical space can be minimised, allowing the facility to improve production efficiency in turn.

If you have lean manufacturing goals, then business systems such as ERP can help you reach them. ERP software can give you a system of integrated applications, helping you manage your business while automating back-office functions. 

>> Download our '10 Key ERP Guiding Principles for a Lean Environment' 

Topics: Lean Manufacturing, Business Efficiency, Productivity, Quality Control

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