3 Benefits of Lean Manufacturing for Faster Growth
In today’s economy, efficiency is the name of the game. In recent years the costs of doing business have increased considerably, creating heavy competition both at home and abroad. Therefore, many business leaders are now seeking new and innovative ways to create a more efficient way of doing business without having to sacrifice quality. Lean manufacturing is currently being hailed as the solution to the problem — the following list details three benefits of implementing a lean manufacturing process within your business.
Speak to any manufacturing leader, and they’ll tell you they are essentially fighting the seven wastes. These include Transport, Inventory, Motion, Waiting, Over-processing, Overproduction, and Defects. As you can tell these seven wastes will no doubt hurt your profit margins. Many studies on manufacturing waste state that over 95% of our operations go into waste. Imagine for a second if you could eliminate this huge number. If this incredibly high number doesn’t convince you that lean manufacturing is the way, then you might have to reevaluate that thought again.
Increased Product Quality
One of the concerns regarding changing the way you manufacture is the quality of the product. We spoke earlier about waste and all the inventory we are throwing away. Often the waste associated with that inventory isn’t because of a mistake in production but simply because your stock has been in storage for so long that it gets damaged. The process to eliminate inventory is one of the best things that can happen to your assembly line. Having extra room to work with, eliminating costly inventory purchases and freeing up staff, in the end, improves the quality of your product. With more hands and eyes to oversee production, fewer mistakes are allowed through.
Implement a lean manufacturing strategy to increase your profits. Often consumers believe that manufacturers price their products so high because they are greedy. Although there are certainly some companies like that the vast majority determine their price based on how much it cost them to produce their product. Too high of a cost will no doubt deter consumers from purchasing from your business and thus profits decrease. Just to summarize, profits decrease because your product is too pricey, and your products are too pricey because you can’t control waste. Through the process of lean manufacturing, your profits grow faster due to the fact that your production has been streamlined to reduce manpower hours and waste. Lean manufacturing equals a cheaper product which results in higher sales and higher profit margins.
Change can be an intimidating venture, especially in business, and even more so in manufacturing. But the consequences of remaining the same can be far worse. Consider the benefits listed above to create a competitive edge for your business.
Here’s another article you might like: 5 Manufacturing Tips to Make Your Business Run Smoother