Lean Production

What is Lean Production?

Lean production, also known as ‘lean production’, is a method for improving processes and procedures in a company. This method is part of lean management and is used to optimise work and production processes in manufacturing and to avoid waste.

The aim of lean production is to create a continuous flow in production in order to maximise productivity while minimising waste of resources. This applies to large parts of the organisation: from production factors to personnel and materials to operating resources and ultimately serves to optimise processes as a whole. The approach is based on the principles of the Toyota Production System and was originally developed in Japanese car factories in the 1950s and 1960s.

The 5 lean principles

Successful implementation of the lean principles leads to continuous improvement in operational performance, an increase in competitiveness and sustainable value creation for customers and the company. The following five core principles form the basis for lean production as a constant cycle:

Define value from the customer's perspective (Value)

Focus on creating value as perceived by the customer and eliminating activities that do not add value (waste). 

Identify the Value Stream (Value Stream)

Analyse the entire production process to identify and eliminate all steps that do not add value.

Create flowing processes (Flow)

Designing production processes so that products and materials can flow continuously through the production process without interruption.

Apply the pull principle (Pull)

Produce based on actual customer demand to avoid overproduction and stockpiling.

Strive for perfection (Perfection)

Continuously improve all processes to reduce waste, improve quality and increase efficiency.

Together, these principles form a comprehensive system that aims to maximise efficiency, make the best use of resources and create greater value for customers. Lean production requires a cultural change within the organisation where all employees work towards common goals and see continuous improvement as part of their daily work.

Types of waste

Lean production identifies eight types of waste (muda) that can occur in production and work processes. Identifying and eliminating these types of waste is a key aspect of the lean approach to increasing efficiency and maximising value for the customer. Here are the eight classic types of waste:

Overproduction

Producing more goods than are currently needed, leading to unnecessary capital expenditure, storage costs and possibly scrapping.

Waiting times

Time spent by employees waiting for materials, information or equipment reduces efficiency and increases cycle time.

Unnecessary transport

Unnecessary transport of materials or products that does not add value leads to wasted time and energy as well as increased risk of damage.

Superfluous processing

More work on a product or service than is necessary from the customer's point of view, often due to poor tooling or product design.

Excess inventory

Higher inventory levels than necessary to maintain a smooth production flow, tying up capital and causing inventory holding costs.

Unnecessary movements

Movements of people or equipment that do not add value, such as searching for tools or walking between workstations.

Errors/defects

Production of defective parts or services that must be reworked, discarded or redone, wasting materials, time and resources.

Unused employee creativity

Unutilised potential, skills, talents and ideas of employees, resulting in wasted opportunities for growth and improvement.

Tools and methods

Lean production uses a variety of tools and methods to optimise processes, reduce waste and maximise value for the customer. Here are some of the most important tools and methods used in lean production systems:

5S

A method of organising and managing the workplace consisting of sorting, systematising, cleaning, standardising and self-discipline. The aim is to create a clean, tidy and efficient workspace.

Kaizen (continuous improvement)

An approach to constantly improving all areas of the organisation through small, incremental changes. Kaizen involves all employees in order to optimise processes and improve quality.

Kanban

A visual control system for regulating production and material flow. Kanban signals (often shown as cards) help to control just-in-time (JIT) production and avoid overproduction.

Just-in-time (JIT)

A strategy for optimising warehousing in which materials and products are produced or delivered exactly in the quantity and at the time they are needed. This minimises storage costs and increases efficiency.

Value Stream Mapping (VSM)

A technique for visualising and analysing the flow of materials and information through the production process. The aim is to identify waste and optimise the overall process.

Poka-Yoke (error prevention)

An approach to error prevention in production processes through the use of simple but effective techniques or devices that prevent mistakes from being made.

Total Productive Maintenance (TPM)

A holistic maintenance programme that aims to maximise the effectiveness of the entire production facilities. TPM encourages proactive maintenance and involvement of all employees.

Implementation challenges

Implementing lean production brings numerous benefits, including improved efficiency, reduced costs and increased product quality. However, companies also face various challenges when introducing and embedding lean principles. Some of the most common challenges are:

Resistance to change

Employees and managers may be sceptical about the changes that lean production entails.

Cultural adaptation

Shifting to a culture of continuous improvement and ownership can be difficult.

Inadequate training

The effectiveness of lean production depends heavily on proper employee training and development.

Focus on short-term results

A short-term focus on results can undermine the long-term success of lean initiatives.

Standardisation and documentation

Neglecting these aspects can make it difficult to maintain and transfer improvements.

Individual integration into existing systems

Every industry and every company must find its own way to optimise the workflows of existing processes.

Successfully overcoming these challenges requires a clear strategy, strong leadership, open communication and investment in training and long-term planning.