Eight Steps to a 'Lean Manufacturing' Approach

The term "lean manufacturing" means different things to different people. However, it can generally be agreed upon that lean manufacturing represents a management philosophy that emphasizes the elimination or reduction of waste in order to increase company profitability. In other words, doing more with less.

Waste Comes in Many Forms

In a report published by the Environmental Protection Agency (EPA) on lean manufacturing, the following types of waste were identified as targeted by lean methods.

Type of Waste	Examples
Defects	Production of off-specification products, components or services that result in scrap, rework, replacement production, inspection and defective materials.
Waiting	Delays associated with stock-outs, lot processing delays, equipment downtime and capacity bottlenecks.
Unnecessary Processing	Process steps that aren't required to make the product.
Overproduction	Manufacturing items for which there are no orders.
Movement	Human motions that are unnecessary or straining, and work-in-process transporting long distances.
Inventory	Having excess raw material, work-in-process or finished goods.
Unused Employee Creativity	Failure to tap employees for process improvement suggestions.
Complexity	More parts, process steps or time than necessary to meet customer needs.

Lean manufacturing is often associated with the Toyota Production System (TPS) that helped catapult the car-maker into worldwide prominence. But some industry experts trace its roots back to the Industrial Revolution and Eli Whitney's systemization involving interchangeable parts. Others link lean manufacturing with the Six Sigma set of practices designed to improve processes. In any event, the TPS is often cited as a successful model for implementation of lean manufacturing principles.

Keeping that in mind, consider the following eight steps for applying lean manufacturing to your business operation:

For many companies, adopting a lean manufacturing approach requires a drastic change in corporate culture. But consider the possible long-term repercussions if your company is not willing to adapt. Discuss the implementation of this approach with your business advisors.