If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

There are many benefits of lean manufacturing. While lean manufacturing started out as a concept in the car manufacturing industry, it has grown and progressed a lot over time. Now essentially any manufacturing process can incorporate the lean manufacturing concept into their business. It makes no difference if your company provides a product or a service. Lean manufacturing is about improving the flow of information and materials through the business and throughout the process. The end result creates a smoother flow of work and shortens lead times for the customer. The overall manufacturing costs are reduced and more waste is eliminated. If your business producing something meant for a customer, the lean manufacturing process can be incorporated to improve the efficiency of the entire business.

Lean manufacturing has a lot of benefits for everyone involved but the three most important benefits of lean manufacturingg are as follows:

1.    Reducing lead times

2.    Reducing costs

3.    Creating extra capacity within the business

Because everything is done more efficiently through the lean manufacturing process, the lead times for customers are reduced. This is a benefit for the company as well because cash that is used to purchase new materials can be invoiced to the customer in a more expedient manner. Additionally, the cost reductions can be passed on to the customer, which keeps the company competitive in the industry. As the company becomes more streamlined and organized throughout its entire manufacturing process – from order to delivery - there becomes more capacity for growth. The business that is able to grow and offer competitive rates benefits greatly. The customer who receives the product or service in a faster time period and for less cost is likely to stay a customer.

Lean manufacturing is not a difficult concept to learn. One of the biggest problems people is experience is caused by management’s lack of understanding and supporting a lean program. Without sufficient support from the organization’s senior management, it is likely that a lean program will not work unless everyone is on board and taking the time to understand what the concept is all about. Management’s lack of support trickles on down to the floor people, who are actually supposed to be working the process. Unless an organization is willing to put forth the time and the effort to truly incorporate the lean manufacturing process into the company, it will not be easily accomplished and they may miss out on the benefits of lean manufacturing.