Lean Manufacturing Basics
It is very important for companies to always remember that their primary goal is to operate efficiently and achieve profitable growth. Rather than focus on quick fixes like outsourcing or downsizing of personnel, companies should focus more of their efforts on achieving an efficient operation and cutting costs through lean manufacturing methods. We’ll discuss several lean manufacturing basics to illustrate how this can be achieved.
The first thing which is essential in achieving lean manufacturing is good information. The data which is reported must be accurate in order to make the best possible decisions and drive the desired outcome.
Secondly performance must be measured and managed in a motivating manner. It must reward people for supporting overall company goals and objectives and not just individual measures.
Sequential production is another essential part of lean manufacturing. This means that the production lines are operating fairly steadily and many of the last minute crunches are avoided. It requires more long term planning and a certain degree of risk in terms of over or under production. However it will tend to save money in the long run and should therefore be pursued.
It is also important to plan out production and schedule incoming material shipments in such a way as it avoids extensive stocking levels and long periods where these goods remain in inventory. Many companies have adopted strategies where suppliers ship out the materials to their customers on a just in time basis. This does require a great deal of cooperation and sharing of schedules and production plans. But in the long run it is good for both the manufacturer and the supplier.
Cycle time management is also a vitally important aspect of lean manufacturing. What this means is that long cycle times must be avoided and effort needs to be placed on reducing these cycle times. Effort and analysis needs to be placed on how these cycle times can be reduced. It will require extensive study of all aspects of the manufacturing process in order to properly assess and plan out the best course of action.
Lean manufacturing also requires a more linear production process. Rather than scheduling more than 25% of the monthly production schedule in the last week of the month or more than 33% of a quarterly production goal in the last month is not an efficient way to operate. The requirements for monthly or quarterly production should be planned out on a much more even basis in order to achieve the best results and lowest production cost.
In light of these suggestions, one thing which is still vitally important is customer satisfaction. Cost cutting through lean manufacturing will not work if it is not in the best interests of the customer. So through this process of implementing some key steps in lean manufacturing make certain that the customer is well served and happy with the results. If not, plan out some modifications which still satisfies the customer but provides good efficiency and cost control.
In this way lean manufacturing can best serve both the customer and the company involved and lead to profitable long term growth.