With the global and local markets becoming increasingly competitive, businesses are being forced to look at ways they can make their production processes more efficient to survive and thrive. Lean manufacturing has been identified as one of the best methodologies that can be applied to achieve this goal. It focuses on minimizing waste and eliminating any steps in the production process that do not add value. This approach allows for faster production, better quality products and a reduction in costs. Here are the five principles that guide this technique.

1. Define Value

This involves identifying what the end-customer of the product values from the product. This relates to what needs are being met, what they really want, how much they are willing to pay for it and what other expectations they want to be met. In-depth research goes into determining these values. Often, consumers lack the ability to effectively communicate this information, compelling businesses to use such tactics as interviews, questionnaires, and other data to learn what they consider most valuable. All those involved in the production process need to have this information in mind as a goal they can focus on to meet customer needs.

2. Map the Value Stream

This second principle focuses on mapping the value stream so that businesses can use customer value as a reference point that they can compare against the steps and related processes, from start to finish of production. Through this comparison, they can identify any wasteful steps. These can be divided into two categories; necessary and non-value adding, and unnecessary and non-value adding. Those that are unnecessary should be eliminated, while that which is necessary must be minimised.

3. Create Flow

This principle is designed to encourage a smooth flow of the production steps and processes. When you have eliminated or minimised wastage, there should be no or minimal encumbrances, bottlenecks and delays that would slow down production or affect your budget. This enables better communication and collaboration between teams, helping to boost productivity.

4. Establish Pull

Pull-based systems help to minimise inventory and work-in-progress (WIP) levels while ensuring there remains sufficient raw materials and data flow that enables a smooth workflow. This ensures that enough products are being completed when needed. This ensures the business does not have to stockpile products while still meeting market demand effectively, allowing for minimal inventory costs that would otherwise need to be passed on to customers.

5. Pursue Perfection

The first four principles enable businesses to effectively achieve their goal of minimising waste and improving efficiency in their production and related processes. However, this is a goal post that keeps shifting. Thus, businesses that adopt lean manufacturing need to keep repeating the cycle and make it a part of their organisational culture. Striving to continually achieve perfection will ensure continued success in delivering high-quality products to customers and lasting business efficiency. This is a culture that needs to be adopted by all employees, at all levels so that there is a sustained effort and vigilance in achieving the desired perfection.