Lean manufacturing is the technique that helps to control production for the elimination of the waste from your manufacturing. It is like the methodology, which is developed for Toyota and manufacturing of the automobiles. It involves the never-ending efforts for the reduction of the muda in distribution, design, manufacturing and customer services processes. The approach helps to improve the efficiencies by removing wasteful steps and add the values. It is no need to reduce the quality of the product in the lean manufacturing, it is necessary for the organizations to maintain the quality of the products. Different organizations improve their efficiency in the different ways, for improving effectiveness of the organization some of the organizations improve the decision-making and also reduce the inventory but they have the focus to maintain the quality of the product. The reduction of wasting the inventory the profitability of the organization improves.
This thing will help the organizations to produce the customized goods according to the demand of the customers, when the customers will get the customized goods then their satisfaction level will increase that thing will help to attract the more customers. In this way, profitability of the organizations will improve. Different organizations use the different strategies for the reduction of their cost or by adding more value. For example, Toyota uses the innovative techniques for reducing the manufacturing cost like in renowned quality or the inventory control. New factories of Toyota becoming the liable and are seeing its new factories as a model for the hyper efficient production and low volume. Beside Toyota KANBAN, JIT and 5S to have the discussion with the consultants that how the lean manufacturing used for the real companies for improving the production.
For the reduction of the cost or adding the value, organizations can outsource some of the products at least part of the research and development to low cost centers and emerging markets. By the outsourcing some of the parts that will be costly if organizations will manufacture within the organization they will be less costly. It is the good strategy for the organizations to reduce the cost.
Second strategy is the business process management that helps the companies to gain the efficiency with the help of combination of the standardization, process improvement and technology automation. It is reality that if management of nay of the organization will manage all the production processes properly then the cost will reduce and efficiency will increase. In addition, the third important strategy for the reduction of the cost is improvement in the lean process. It is the methodology, which is based on the elimination of the non-value adding activities. Lean techniques such as the 5S help to improve the efficiency of the workplace. With the help of these strategies, organizations can reduce the manufacturing cost and improve the quality or the efficiency.
Five Ways to Improve the Operations:
There are the different principles for the lean manufacturing that help the organizations to improve the operations by the implementation of the lean initiatives.
Firstly, organizations have to identify the customers and specify the value of the organization. In the starting point, organizations have to identify that only the small fraction of the total effort and time in the organizations add the values for the end customers. For the specific services or the goods organizations have to clear their values with the perspective of the end customer, for the removal all the waste or the non-value activities can be targeted.
Identify the Map and Value Stream:
It is the entire set of the activities in all parts of the organizations that are involve in the delivering of the goods or the services. It shows the end-to-end process that delivers the values of the customers. When the organizations identify the needs or the demands of the customers then they focus that what are the ways through which they deliver that products or the services for the satisfaction of the customers.
Pull and Flow
Typically, when the organizations will manufacture the customized goods according to the orders of the customers then the cost will reduce. Because the quantity of the products that the organizations will manufacture will be pulled because these are the customized goods, this thing helps to increase the values or to reduce the waste or the cost of manufacturing.
Empowerment is the important way to reduce the cost of the manufacturing, because when the multi skilled labor will have the empowerment to take the decision according the situation, then the cost will be reduced. Employees are the intellectual asset that help the organizations to increase the values, therefore organizations have t give power of taking the decision to their multi skilled employees.
When all the operations of the organizations will run perfectly then their performance will improve and there will be the zero defect. In this way, it becomes easy for the organizations to focus on the values of the customers or employees. When all the operations of the organization will run properly then it become easy for them to eliminate the wastes or to increase the efficiency of the operations.