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Knowing what adds value, or what your customer is willing to pay for, is the focus of the lean manufacturing method. Improving value by reducing waste is key to the process.
Definition
Lean manufacturing is a process of review of and change to the procedures a business uses to deliver its product or service. Procedures that add value to the end product or service are kept. Anything that does not add value is deemed waste and is eliminated.
Waste Reduction & Elimination
Elimination of waste is the main focus of lean manufacturing. Businesses gain efficiency and, ultimately, profitability by eliminating all or as much waste as possible.
Types of Waste
In the lean manufacturing model, waste can fall into one of seven categories--transportation (useless movement of goods), inventory (overstocking), waiting (parts waiting for work to be done on them or waiting to be shipped), motion (unnecessary movement of either people or machinery), overproduction (producing more than is needed), overprocessing (doing more work than necessary, usually caused by poor design) and defects (time wasted inspecting and correcting them).
Value-stream Mapping
Value-stream mapping is one of the best ways to identify waste and thereby eliminate it. In the process, the company creates a flow chart for every process and procedure. This visual depiction makes clear where waste and wasteful activities are occurring.
Benefits
Improved efficiency and profitability are the two main benefits of lean manufacturing. Companies that have adopted the lean model also find they require less space, less capital and less time to get their products (or services) to market--all of which contribute positively to their bottom lines.
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