Lean Manufacturing refers to a strategic tool that helps organizations minimize the waste in the manufacturing process without compromising productivity. Lean Manufacturing is a methodology and a process improvement method used by organizations to facilitate cost reduction and achieve strategic advantage. Origin of Lean Manufacturing The concept of Lean Manufacturing has originated from The “Toyota way”, an operating model used by Toyota in 1930. Lean Manufacturing Principles Value Value refers to the willingness of a customer to pay for a product or service. Sometimes customers are unable to put the correct value especially in the case of technologies. The organizations must determine the value from the viewpoint of the end-customer with help of survey, web analytics, and demographic information Map the Value Stream The customer’s value should be used as a reference point and identify the activities that will add to this value. Unnecessary things are considered waste and should be eliminated to map an effective value stream Create Flow Create flow to ensure the remaining steps are running smoothly through leveling the workload, recreating the production steps, creating cross-functional units, and training employees Establish a Pull System Establish a pull system to limit inventory and WIP and ensuring the required resources and information is available. Perfection Every employee must pursue perfection while delivering products that will meet consumer needs Lean Manufacturing Advantages - Cuts down on money and time through efficient workflows, resource allocation, production, and storage. - Minimizing the time spent on unnecessary things minimizes lead times and improves service. - Reduces wastage of resources and this proves beneficial for the environment. - Better products and services make the customer happy. Lean Manufacturing Disadvantages - The well-being of employees and their safety is overlooked in the process. - The methodology is focused on minimizing waste and not on future growth. - Challenging to standardize the process. Lean Manufacturing Examples 1. McDonald’s 2. Elon Musk 3. Amazon 4. Volkswagen This video is on Lean Manufacturing and it has the following sub-topics. Time Stamps 0:00 Introduction 00:21 What is Lean Manufacturing? 01:01 Origin of Lean Manufacturing 01:34 Lean Manufacturing Principles 01:38 Value 01:53 Map the Value Stream 02:17 Create Flow 02:26 Establish a Pull System 02:58 Perfection 03:19 Lean Manufacturing Advantages 03:22 Cuts down on Money and Time 03:49 Good for the Environment 04:01 Customer is Happy 04:19 Lean Manufacturing Disadvantages 04:23 Wellbeing of Employees and their Safety 04:38 Prevents Growth in the Future 04:52 Challenging to Standardize 05:08 Lean Manufacturing Examples