The concept of lean production has been in existence for many decades, with its origins tracing back to the early twentieth century. Over the course of the last century, it has evolved and adapted to fit the changing business environment, becoming an integral part of the strategic plans and operational models of many organizations. Put simply, lean production is a way of conducting business that is focused on improving efficiency and quality in every area, while minimizing waste and minimizing costs.
At its core, lean production is an attempt to maximize customer value while at the same time eliminating all activities in a given process that do not add value to the customer. This is accomplished through a combination of goal-directed attention, careful data analysis and well-defined customer focused measures. Lean production also attempts to improve quality by removing the seven “muda” or wastes common to all production systems. These include defects, overproduction, waiting, non-utilized employee talent, transportation, inventory, and motion. Through lean production, these areas are identified, examined, and removed when possible.
The goal of lean production is to achieve the highest degree of customer value with minimal investment and risk. This is accomplished by implementing the tenets of continuous improvement, which include creating a culture of flexibility and creativity, introducing process variability, and encouraging experimentation with different process configurations. The benefits of lean production extend beyond just cost and efficiency. Lean production typically results in improved customer service, greater levels of job satisfaction, enhanced employee morale, and ultimately a more successful business.
In order to successfully implement a lean production system, an organization must have a shared perspective and vision. This means that everyone in the organization must be committed to the principles of lean production and must understand the need for using it. The focus must be on improving customer value while reducing effort, overhead, and cost. Additionally, there must be a strong, data-driven approach to problem solving along with effective management of resources.
Integrating a lean production system into a business requires a significant commitment both in terms of resources and management time. A successful implementation requires a full understanding of the system, resources to implement it, and personnel to manage it. Additionally, a clear understanding of customer needs, customer service strategy, and product development strategy must be in place.
The benefits of lean production are numerous, especially when compared to more traditional production systems. By reducing waste, increasing efficiency and improving customer service, an organization can improve its bottom line, and benefit from the competitive advantage it provides. As the production landscape continues to evolve, it is likely that the concept of lean production will become even more prevalent.
