Lean Manufacturing is the principle of increasing revenue not just by increasing sales but by reducing waste. The Lean Manufacturing philosophy names seven major wastes that should be dealt with - Over-production, Transportation, Waiting time, Processing, Motion, Inventory, and Scrap. The idea here is that only when one is able to control the waste that goes here can one truly be able to control earnings and expenditure.
Lean, as in free from superficial baggage, aims to help manufacturers become more cost efficient and less wasteful. The principle follows a domino effect. If waste is reduced, then by the process that reduces waste, the quality of the product is increased. If the quality of the product is increased, the production time and the production cost decreases. This whole scenario ends up with an increase in total revenue from sales.If the process is able to minimize or eliminate the following, then, the production was in its slender shape. Even with Lean Manufacturing follows more income, more quality, less waste and interesting for any company, whether they are already pulling down a good amount of revenue or when they are in their reporting sales.
It is about a process, the error is minimized. In addition, a system for detecting and fixing defects. Also deficiencies should be corrected at the source, when it went through the production and landed in the hands of the customer.
The creation of excess capacity, unsellable products has been a problem for a long time. It is an optimal equilibrium, where production is in a position to produce just the right number of products to satisfy the demand of consumers. Moreover, there is only waste. Even that is what Lean Manufacturing tried to avoid waste.
The ideal is to make the transportation of goods with the least possible effort and energy. This includes the transportation of products no longer than necessary of claims. The transport of waste will be avoided.
In order to ensure optimum production, one needs to a pipeline in the production, there is little or no waiting time between phases. The waiting period between the stages is wasted time. Also wasted time wasted resources.
Good Production Management provides a proper loading processes so that a process has always something to do and has no time or slack down. This calls for the proper conduct of production schedules to reduce time and effort.
During an inventory must be reasonably stocked, it should follow that the inventory should not be flooded. If there is a mismatch between supply and demand, then there is sure to waste. The best proposal here it is, the supply and demand meet dead-center, so that there is no waste in the production, yet there is no loss of revenue due to the under-utilisation of demand.
Wasted motion resulted from such activities as often searching for lost tools and papers. It also stems from the lack of proper planning of the activities, so that these activities can be done in the most efficient way.
This results in the Japanese habit of cleaning up and organize all their things so often. This gives them a good idea of where their equipment is, and how the equipment should be cared for. Most companies try their staff to be efficient, not only with time and equipment movement, but with their activities as well.
A process may eventually fine tuned and modified so that it is in a state of constant improvement. A process can not hope to be perfect the first time. Nor can neither a perfect system perfect for a long stay.
The planning process should adapt to current situations and should always be self-critical. Only then can there be a meaningful and productive changes in the processing. The most celebrated producers have a system that the organization can change and improve their production.
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