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Reasons Of Why Companies Use Lean Manufacturing

Aug 17, 2007
Lean manufacturing (LM) is an innovative methodology to making companies' profits and earnings somehow upbeat and at par with contemporaries around the world. This manufacturing system, according to experts, was developed and initially implemented and launched in Japan, by a company now known as Toyota. Japan itself is a country foremost known for interactive and inventive approaches to solving and dealing with problems. Experts also note that lean manufacturing principles are very simple and practical. However, the success of this manufacturing system adoption and implementation depends and principally relies on the effective and religious implementation of the simple and easy to do strategic principles.

Companies around the world, in all aspects and in all industries, are now addressing LM issues and concerns, one way or another. The fact that all companies need to reduce operation costs and expenses make up to the companies ever-enduring efforts and initiatives to adopt LM principles.

There are numerous companies that fall and file for bankruptcy every now and then. The corporate world is alarmed because even the staunchest and most stable companies in the past decades are beginning to show signs and indications of deterioration and weakness nowadays.

It can be because the world economy is so challenged by the greatest problem that has bugged the economy of the world--rising and higher oil prices. Lean manufacturing is becoming very popular among all companies because of that.

Lean manufacturing principally aims to help companies by targeting or initiating ways, measures and practices that alleviate and reduce wasteful practices and behaviors in the work environment.

Lean manufacturing is also helping companies around the world to cope up with the real and emerging challenges in the real world when prices and costs are so volatile and influential to modern living and economies.

There are seven waste, wasteful practices and unproductive processes that LM aims principally to erase or alleviate.

First, LM aims to scrap over production among companies. Over production leads to lowering and declining prices of products and merchandise that would eventually lead to a company loss. Moreover, over production also leads to more unwanted stocks thus impact the cost to keep those stocks.

Second, LM aims to reduce and cut over processing inside all companies. Over processing makes expenses higher by putting up additional costs and expenses for processing materials and labor costs. Time is also wasted by that.

Third, LM maximizes transportation. You know that transportation is facilitated by automotive and cars. These in turn, burn up oil and petroleum that are currently priced at unreasonable levels.

Fourth, LM makes motion productive. By eliminating wastes and setting aside big and space-consuming equipment in the work place, laborers are able to move freely, enabling them to eventually speed up production and do more outputs.

Fifth, LM prevents piling up of inventories. In some industries, piled up inventories are positive, but in almost all, or the majority of manufacturing firms, inventories should be kept controlled because prices of the goods are affected by piled up inventories.

Lean manufacturing makes up operations streamlined and more efficient. Thus, for the sixth spot, lean manufacturing principles help make companies alleviate and prevent waiting time.

Lastly, because the environment is cleared from all obstacles and disturbance, LM helps companies avoid the production of goods with scraps and defects.

Companies producing merchandise and outputs with scraps and defects not only suffer from losses from the production of such substandard products, they also lose customers because their credibility are destroyed and tainted.

There are more and more companies around the world that successfully implement LM techniques and principles in their daily operation.

It should be noted that companies that use LM with success are characterized by one and a single unifying feature --all of them are profitable and strong.

Companies that use LM with success are also notably very competitive amid intense and rising competition in the corporate world.
About the Author
Fidens Felix, owner of Visiac, LLC - an online publishing company. Read his insight at http://www.FidensFelix.com.

To find out more about lean manufacturing, visit Toyota Way.
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