Written by: Bryan Christiansen

Every opportunity to increase equipment and labor efficiency within a manufacturing facility improves its productivity and revenue. For this reason, companies are continuously implementing and streamlining their Lean manufacturing production processes. The goal of the methodology is to optimize productivity by minimizing waste. It remains a vital production philosophy as technology and globalization disrupt the manufacturing sector. Lean manufacturing focuses on eliminating non-productive work and processes and involves streamlining manufacturing inventories, automating processes, minimizing downtime, and reducing product defects.

Lean manufacturing enables small, medium, and large-scale companies to deliver value to customers, availing supplies as and when needed. As the company satisfies its customers, it also gains a competitive advantage over the global competitors. The Lean manufacturing philosophy applies to companies of any size and takes time to implement. Companies seeking to establish a Lean manufacturing process can improve its success probability by:

  • Developing a robust implementation plan
  • Training its employees on the benefits of Lean manufacturing
  • Modifying the process to address business-specific needs
  • Making it a data-driven system by leveraging technology
  • Focusing on a culture shift among all levels of the company

The benefits of Lean manufacturing are both customers- and business-sided. Below are ways that Lean manufacturing impacts business productivity and competitiveness.

Better Product Quality

When using Lean manufacturing, employees implement quality improvements to processes and products. The continuous improvements and quality checks ensure that production teams can rectify or eliminate defective products from the process. A product can move to the next stage if it meets specific quality specifications. It eliminates the transfer of errors that could otherwise alter the quality of end products.

The effectiveness of Lean maintenance processes also affects the quality of products. Maintenance teams adopt best practices that minimize machine defects during production, optimize availability and enhance the safety of plant floor personnel. Precision parts can meet high-quality standards and strict technical specifications (tolerances, surface finish, etc.).

By producing quality products, companies build lasting relationships with customers. They receive endorsements and referrals that can boost their business prospects. The company does not incur additional costs to recall and replace defective products or lose revenue due to costly lawsuits resulting from products that do not meet consumer standards.

Decreased Lead Time

Consumer habits change by the day. Fluctuations in consumer demands can hurt businesses that over-produce and over-stock. With the advent of technology, companies use real-time customer insights for demand forecasting and production. Companies using Lean manufacturing can improve production lead times by:

  • Adopting Just-in-time inventory — the company orders supplies only when production of new units is required.
  • Pull production processes — companies can only initiate component production when there is a demand from customers.

These manufacturing approaches improve process organization and improve workflows. There are fewer bottlenecks since production teams can proactively plan for equipment utilization. It enables them to foresee and eliminate activities that can delay production. Lean manufacturing practices help the company respond better and faster to fluctuating market demands without harming its financial positions.

Lean manufacturing is a strategy that allows companies to avail high-quality products to customers within the shortest possible time while retaining the best quality standards. It improves customer service and fits perfectly in a market where consumers prefer instant service.

Reduced Inventory Costs

Every production facility requires diverse raw materials, maintenance supplies, handling, and storage assets to keep operations going. Sometimes, the market demands may push companies to overstock raw materials or overproduce in reaction to market dynamics. Such arrangements can derail the direction of the business as it ties down plenty of cash and exposes the company to several risks.

Lean inventory focuses on eliminating wastes and risks. Companies can adopt a just-in-time inventory model, sourcing essential supplies when needed. They also streamline the logistics services to avoid stocking items after production.

These practices improve productivity by:

  • Releasing plenty of cash held as idle stock, and obsolete or damaged supplies.
  • Reducing inventory-related costs (building and equipping storage units, warehousing, and insurance against theft or fire).
  • Leaner human resource — the company can undertake operations with a handful of resourceful and innovative employees.

By reducing inventory costs, companies can save more money to recruit and retain talented staff who will use their skills to innovate and push the company to competitive heights.

Sustainable Operations

Companies that adopt Lean manufacturing utilize any opportunity to eliminate waste. The streamlining of processes translates to a lower cost of production and sets the company on a path of profitability. Demands from consumer markets can flip in a matter of minutes. These rapid changes can destabilize business operations with far-reaching financial consequences.

As the global economy advances, the demand for raw materials increases. It increases the cost of raw materials, making it mandatory for companies to adopt sustainable business practices. Companies practicing Lean manufacturing can effectively adapt to market dynamics. Their ability to eliminate waste enables them to optimize the utilization of available resources.

The ability for manufacturers to adapt to changing economic times enables them to remain competitive, innovative, productive, and cost-effective.

Final Remarks

The benefits of Lean manufacturing are immeasurable. They allow small and mid-sized companies to compete favorably against established giants. Companies can control the cost of operations, react effectively to market dynamics and deliver valuable products to their customers. Lean manufacturing helps companies retain competitive pricing and the best quality products to guarantee the continuity of businesses beyond generations. Successful implementation increases employee satisfaction and participation in improvement programs as they enjoy streamlined operations.

Author’s bio: Bryan Christiansen is the founder and CEO of Limble CMMS. Limble is a modern, easy-to-use mobile CMMS software that takes the stress and chaos out of maintenance by helping managers organize, automate, and streamline their maintenance operations.