Understanding the Lean Enterprise
Mass production was very popular and recognized as the production system of the 20th century; while lean production is viewed as the production system of the 21st century. Japanese terms are most times used in defining terms related to lean methods so as to convey broad concepts. There is no system that doesn’t contain waste irrespective of the industry (manufacturing, banking, hospitality etc.) and size.
The lean enterprise encompasses the entire production system, starting with the customer. It includes sales outlet, the final assembler, product or process design, and all tiers of supply chain from the receipt of raw materials. Lean system is highly dependent on the demands of customers and how reliable the suppliers are. Implementation of lean manufacturing can only reach its full potential when it is included in the planning of the entire enterprise. Lean techniques are focused on the systematic identification and elimination of waste, and the implementation of the concepts of continuous flow, and customer pull.
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The benefits of lean production systems include the following:
- Lower production costs,
- Fewer personnel,
- Quicker product development,
- Higher quality,
- Higher profitability, and
- Greater system flexibility.
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Drivers of the Lean System
The five drivers of the lean production are the following:
- Cost
- Quality
- Delivery
- Safety
- Morale
The techniques for analyzing systems, identifying and reducing waste and focusing on the customer are applicable in any system, and industry. Implementation of lean techniques depends on various factors including industry, internal culture, and internal business considerations. The type of tools used to implement lean operations, and the order in which they combined for use, are highly dependent on whether a company is a discrete manufacturer, continuous producer, or provider of a service.
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About the Author
Adebayo is a thought leader in continuous process improvement and manufacturing excellence. He is a Certified Six Sigma Master Black Belt (CSSMBB) Professional and Management Systems Lead Auditor (ISO 9001, 45001, ISO 22000/FSSC 22000 etc.) with strong experience leading various continuous improvement initiative in top manufacturing organizations.
You can reach him here.
