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69.7% of manufacturers have implemented lean manufacturing tactics. With the cost reduction and efficiency linked to lean, it is not hard to see why.

Born from the heart of Kiichiro Toyoda this type of manufacturing has been affecting industries since the 1930s. What is lean manufacturing and how can lean production benefit your business? Your answers are below.

What Is Lean Manufacturing?

Lean manufacturing or lean production is a principle that revolves around reducing waste while boosting productivity.It was born from the need to do more for less. It regards waste as anything that a customer will not pay for.

The science behind lean production first started in Japan with Toyota. The first implementation was in the Toyota Production System. Today, this methodology is not only employed in manufacturing. But it has evolved to different sectors from software development to the healthcare sector.

But it was not until the 90s that lean entered the Western world. We can credit this entry to a book by MIT professors James Womack and Daniel Ross and researcher and author Daniel T. Jones called The Machine That Changed The World.

The Five Principles of Lean Production

There are five principles used in lean manufacturing. These principles were outlined in the book we discussed above and are regarded as the best way to maximize productivity.

1. Define Value

To understand value, we must first understand its place in the product lifecycle. We can define value as the exact opposite of waste. It is defined as what the customer is willing to pay for a product or service.

As you look into manufacturing your products, you must keep this factor at the forefront. Understand the value a customer puts on your products. And this will help you decide what you invest in manufacturing.

2. Map Out the Value Stream

This second step feeds off the first principle. Once you know the value of your products to customers, it will be easy for you to optimize your processes toward them.

At the heart of this principle are two factors: reducing waste while improving production processes.

You will have to consider all the cycles involved in your manufacturing.Every cycle should be reviewed with the aim to reduce unnecessary waste.

3. Create Flow

This third step relies on eliminating functional barriers to increase lead time. Constant interruptions in the workflow can result in waste and increased production costs.

As a manufacturer, you want to ensure flow from the time an order comes in, to its delivery.

Some of the ways manufacturers can reduce interruptions are by breaking down processes or by introducing cross-functional departments.

4. Establish Pull

In the manufacturing space, inventory can be one of the major reasons for waste. Establishing a pull system is how some manufacturers solve this.

A pull system differs from a push system in that manufacturing only begins when there is a demand. While with a push system, forecasting and planning are required.

The system will ensure that you streamline processes and can meet customer demands as they arise. It eliminates the possibility of over and understocking.

5. Pursue Perfection

Another term used to refer to this step is Kaizen. When translated, this Japanese term means changing for the better.

This alludes to your company's continuous improvement. You don't stop at reduced waste. But you continue to strive to do better. Kaizen means you continue to improve your processes. Your company becomes a learning ground for you and your employees.

The Benefits of Lean Manufacturing

Lean thinking provides an array of benefits for manufacturers. Some of the most notable are below: