Lean production is an approach to management that focuses on producing goods and services with a minimum of wasted resources while maintaining high quality. Toyota was the first major manufacturer to introduce lean production in the late ’30s, and the fact that it is now one of the world’s most successful car-makers is no coincidence. Many techniques are still being used by the businesses, such as quality circles, worker empowerment, JIT, Kaizen, Simultaneous engineering and cell production.
Below, we have explained each technique in detail to help you use lean production techniques to take your business to the next level.
1) Concurrent engineering
Concurrent engineering is also known as simultaneous engineering, and as the name suggests, everything is considered simultaneously rather than in series. It is a teamwork approach that involves all areas working on the same project at the same time.
For instance, the suppliers are involved in new product development so that delays can be avoided.
The figure shows how concurrent engineering can save time.
Concurrent engineering can be applied to any project. It will help the business yield more profit as more time will be saved, and the business will launch the product earlier than estimated.
2) Quality Circles
A quality circle is described as a group of employees that meet regularly to discuss work-related problems. The reason behind quality circles is to motivate employees and figure out the issues in the business. Managers are usually present in quality circles to identify and solve problems. QC ensures that improvements are made in safety standards, employee motivation, and the product and improves employee skills and creativity.
Quality circles have proved successful for businesses as they minimize defects, improve quality, and save costs. It can be applied to enterprises apart from manufacturing as well.
3) Just In Time (JIT) inventory
This approach aims to cut down inventory costs and increase efficiency. Manufacturers receive the materials as needed, which cuts down storage costs. The firm minimizes the need for a warehouse and spends less money on raw materials.
It can be very useful for a business that works in food chain businesses that work with products that get stale very early.
However, Low inventory levels put a huge reliance on suppliers that can prove to be risky. Any delay in the order could potentially delay the production process.
4) Kaizen
Kaizen is a Japanese word for improvement. Many organizations have adopted this strategy as it aims to establish an environment of continuous improvement. The kaizen philosophy suggests that workers know more about how the job should be done than their managers. Someone who works at a task every day is more likely to understand how to improve the quality and productivity than a manager with perhaps no hands-on experience.
Many firms have adopted Kaizen, but the business should implement it throughout the organization for it to work effectively. Firms can also experience real resistance from senior
managers to such programmes due to existing culture. On a short-term basis, there may be tangible costs to the business of such schemes, such as staff training and meetings.
5) Cell production
It is a form of flow production, but instead of each worker performing a single task, the production line is divided into several self-contained production units called cells.
Each cell has a team leader, and below that, a different level of the hierarchy is made up of multiskilled workers. The performance level is measured against the pre-set targets that are production, quality and lead time.
Cell production has led to improvements in worker commitment and motivation and has increased productivity among the workers.
6) Flexible specialism
Lean production recognizes that both technological and changing consumers can lead to short production runs. It is true for markets such as mobile phones and games. Flexible specialism enables workers to perform different jobs on different product ranges.
This way, the flexible approach ensures that a quicker response is made to changing consumer taste. This approach is also referred to as ‘time-based management because it aims to cut down all wasted time during the development and production process.
Final thoughts
There are often rare occasions where lean production might not be applicable, suggesting that there remains considerable scope for most businesses, taking forward the lean production concept to improve efficiency and drive down unit costs.
