Benefits of Lean Manufacturing and Why Implement Lean?
While any organization decides to implement a new concept, it is absolutely normal to have the minds bombarded with numerous questions. This not only helps in understanding the significance of the concept well but also ensures that the organization is aware, in advance, about the pros and cons and how beneficial would the implementation be. Competing in the global marketplace is becoming more and more difficult with organizations adapting to the existing as well as new global standards well in time.
Lean Manufacturing is one such tool that has come up the growth and acceptance curve pretty well across the world. It not only gives an organization an edge over its competitors but also assists in focusing more on customers as well as customer satisfaction. Producing what the customer demands is the ultimate goal of every organization equally focusing on the customer satisfaction levels and quality standards too. This is where Lean Manufacturing paves a path for the organizations to increase competitiveness while fulfilling customer’s demands with minimal wastage and high satisfaction levels.
Benefits of Lean Manufacturing
How is lean manufacturing different from the so many other concepts that exist in the marketplace? Do you really want to go down this road as may be some customer insisted or perhaps your competitors have done so? How would it benefit your organization? The list of questions is endless when we begin thinking about implementing and investing in a new concept.
Lean Manufacturing began from the world’s most successful automotive manufacturer “Toyota”. How the company which was at the verge of becoming bankrupt bounced back and emerged to be the most successful one? All the credit goes to the concept of Lean Manufacturing implemented by them. If this is not a reason enough to understand the benefits of lean then here we take a quick look at them:
Lean Manufacturing removes waste – Anything beyond an acceptable limit that adds no value to the product is waste. Lean helps in addressing the 8 key wastes - overproduction, inventory, transportation, defects, over processing, motion, waiting and creativity. Lean implementation helps in abolishing the time spent on needless tasks. By eliminating waste, Lean Manufacturing improves:
Quality performance
Delivery performance
Supplier relations
Customer satisfaction
Stock turnover levels
Inventory levels by lowering them
Space utility
Efficiency and much more
Lean Manufacturing simplifies and streamlines the company’s processes – Having simplified and structured processes is every organization’s desire and aim. Lean manufacturing allows any organization to have its processes streamlined across the length and breadth to ensure the manufacturer works at its full potential. This, in turn, results in higher efficiencies, reduced manufacturing costs and increased mobility as far as movement to the market is concerned.
Broadening satisfied customers base – Perceiving value from customer’s point of view is Lean’s first and foremost principle. The key to satisfying a customer as he expects is what Lean manufacturing focuses on. To ensure that the customers come back to you requires identifying value as per the customer’s perspective and that is what Lean manufacturing facilitates. Gaining and broadening satisfied customers’ base is every company’s objective and ensuring that they achieve is lean’s promise.
Lean Manufacturing and profits – For every business owner, profit is the margin they gain over and above the costs incurred (i.e. Profits = Selling Price - Costs). As the costs reduce, with reasonable selling price, the profits are bound to increase. The answer of how to reduce costs is Lean itself. Lean works to bring down the overall costs, saving every penny and thereby increasing the profits for any organization.
Financial Impact of Lean – The financial impact of implementing lean manufacturing is visible at every level of the organizational structure. If implemented right, lean can pump in the required capital back into the business. By reducing the amount of work in progress and finished goods, the financial balance between assets and liabilities can be maintained. Furthermore as mentioned above, reduction in costs would ultimately result in higher profit levels as well.
Lean manufacturing for better business growth – Change is inevitable but introducing it in an appropriate manner is significantly important. Lean manufacturing not only streamlines the processes and organizational structure but also paves path for future business growth. Once all falls in place post Lean implementation, the loopholes can be fixed in time, materialistic short term as well as long term goals can be set with concrete base too. This in turn would result in better growth prospects for the business.
The benefits remain all the more same however the output and efficiency varies from organization to organization. The above benefits clearly indicate the need for implementing Lean in your setup since being futuristic is what the present demands. Following and adapting to the right concepts at the right time does more good than doing it at the wrong time. For More Info on Lean Manufacturing then do visit this url - www.qgspl.com/services/lean-manufacturing-consultant
