Lean Manufacturing: Who, What and Why?

By Dianna Brodine, managing editor,
The American Mold Builder

Henry Ford may have been the first US manufacturer to implement lean production when he simplified processes on the assembly line by creating a moving assembly line in 1913. Driven by a desire to make the automobile affordable for everyone, the workers laboring on the Ford Model T were divided by tasks into separate locations in an effort to reduce unnecessary movement. Rather than hauling parts and tools to an area where the vehicle would be built, Ford implemented a system of pulleys to move the car from one work station to another.

Ford realized stunning time savings with this production change. Cost savings followed as labor was utilized more efficiently, and Ford soon was selling more cars than ever before.

The principles of the assembly line – elimination of waste, specialization of tasks and increased production – evolved into the modern day “lean manufacturing.” Ford’s production model worked well when the exact same product was produced each time, but when variety was needed the system fell into chaos.

Who?

Toyota may be the most widely known implementer of lean manufacturing, having modified the reduction of waste mantra into the Toyota Production System (TPS) that has been adapted across the world. However, manufacturing facilities across a wide range of industries and serving a range of end markets have added lean manufacturing concepts. From the big names – Caterpillar, John Deere and Nike – to the small, lean manufacturing can positively impact any company involved in a physical product creation process.

What?

Lean manufacturing, at its most simple level, is about finding waste in a production environment and removing it. The Japanese word “kaizen” also is commonly heard in discussions about lean – meaning “change for better” or continuous improvement. Taken together, the lean manufacturing process encourages those in a production environment to find waste and work to improve or eliminate it.

Waste can take a variety of forms, including wasted steps in a production process, wasted labor hours or wasted movement of materials. Poor quality and excess inventory also are forms of waste. In view of managing that waste, TPS has been distilled to five steps, namely the following:

  1. Specify the value. Find what creates value in the product/process from the customer’s viewpoint.
  2. Map the process. List each step in the process of creation.
  3. Flow the product. Simplify the steps so the product flows through production.
  4. Pull the product. Produce only what is required when the customer needs it – also known as just-in-time production.
  5. Work toward perfection. Continually evaluate the process to find other examples of waste that can be removed.

Why?

Removing waste from the manufacturing process saves time, money and resources. One of the key benefits is an improvement in quality. When processes are standardized and unnecessary steps eliminated from a production environment, the product created typically has fewer errors – reducing defects and rework. Improvements also can be found in employee satisfaction as those repetitive tasks that cause job frustration are eliminated.

Less space often is required as unnecessary steps – and sometimes equipment – are eliminated on the production floor, and just-in-time production reduces the amount of excess inventory on site. This can allow for expansion of services or future growth – or facility reduction, if that step makes more financial sense. Most importantly, the implementation of lean manufacturing and its related continuous improvement efforts often lead to increased profit levels and higher customer satisfaction, which, in turn, can lead to additional business.

Adding lean manufacturing to any production environment isn’t an instant cure-all, and the process itself can be messy and frustrating. It requires a culture shift and a team effort that starts at the top, but the rewards can be great.