Lean Production Definition

How lean management can improve your work processes

Constant change and global crises are making our everyday lives increasingly difficult and stressful; it is therefore essential to address and rethink some entrenched structures. This raises the question: " Is the way we act still sensible and efficient enough to keep up with today's standards?" Whether in your personal life or at work, you are constantly confronted with the need to improve and optimize processes. Especially at work, with growing staff and skills shortages, it is important to revise existing structures and, as a result, optimize process steps, possibly even eliminate them. This article introduces the "Lean Production" method and explains the advantages of this method.

Definition and origin of Lean Production

What does "Lean Production" actually mean? The origins of lean management go back to a specific production system of the Japanese carmaker Toyota. In the 1950s they increasingly faced problems with raw material shortages, limited financial resources and
lack of space. To ensure the company could survive in the future, a solution was needed. The idea was to deliver the highest quality in the shortest time and achieve optimal costs by identifying and eliminating waste and irregularities in production processes. From this approach arose the Just-in-Time principle. This principle entails supplying and producing materials only in the quantities and at the time required by customer orders. In a study in the 1990s, the authors referred to this production system as Lean Production
or, in German, schlanke Produktion. Analogous to this term, concepts such as Lean Administration and Lean Maintenance quickly emerged. Today, the term Lean Management brings together all company processes - from administration to manufacturing - and looks at the entire value chain. Given today's market demands in the industrial sector, Lean Production is more relevant than ever. High competitive and time pressure, rising customer expectations, and cost sensitivity. Companies that want to remain competitive must align all production processes with demand and make them cost-efficient
structure them.

Goals of Lean Production

Lean Production helps across multiple processes to reduce waste in companies and minimize costs through efficient use of resources. In general, processes are streamlined, as the term "Lean" already suggests. In manufacturing, processing times become shorter and more considered, increasing product variety and customer satisfaction through short delivery times.

The 5S method

Lean Production is fundamentally part of Lean Management, as is the 5S method. This method is a systematic approach to designing your own work environment. Its goal is to minimize waste and instead replace it through structured workplace organization. Its origin is also in Japan. The five "S" derive from the terms Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. In German
translation, it describes the steps of the 5S method : Sort, Set in order, Shine, Standardize, and Sustain.

The 5 Lean principles

Roughly speaking, there are 5 Lean principles. The Lean principles focus on optimizing processes in management. Ensuring efficiency and quality is achieved by aligning with customer needs. Key to a continuous production flow is eliminating bottlenecks and producing only to customer order to minimize inventory costs. Employees should always be encouraged
to question processes and submit suggestions for improvement. This sustainably increases efficiency in manufacturing.

Lean only works as a team

Introducing Lean Production in your company generally makes sense if you operate in areas of mass production. You have the opportunity to reduce your costs by
responding more efficiently and effectively to current market needs. You can make your processes more effective and thus increase competitiveness. Improving the quality of your products and productivity can be ensured, as revised process steps help replace dispensable processes with more efficient methods
instead. Inventory, factory space, and staff are reduced to a minimum, which again leads to cost savings. Producing and ordering based on demand and on customer requests and wishes means that intermediate storage associated with additional costs is eliminated and production surpluses can be avoided.

If, as a company, you decide to introduce Lean Production, the first step will involve several tasks for everyone involved, because restructuring the original processes requires a lot of analytical thinking. Employees must be given the opportunity to get involved and provide suggestions for improvement, because
ultimately this change will also make their daily work easier. Measures can only lead to lasting success if everyone involved recognizes the purpose of the changes and the process is continued continuously. This once again shows how important it is to involve all employees and bring them on board!

Lean Production is not a sprint, but a marathon

In general, it can be said that Lean Production has a positive impact on productivity, lead times, inventory, and process quality. However, it is important that all employees are involved and there is a certain willingness to question and adapt existing processes and procedures. As already mentioned, there are several different approaches to implementing Lean Production in your company. Regardless of which lean concept you want to apply, the guiding principle is: "This is not a sprint, it's a marathon."