Lean Manufacturing is a system of tools and methods to continuously eliminate all waste in the production process. The main benefit of this system is that it reduces production costs, increases output and shortens production lead time, resulting in no overcapacity.
Lean Manufacturing helps to achieve the following specific objectives:
Reduce errors and waste:
Reducing errors and unnecessary tangible wastes, including over-use of input materials, preventable defects, costs associated with defect recycling, and features on capital products. Not required by customer.
Shorten production time:
Reduce process time and production cycle by minimizing waiting time between processes, as well as preparation time for the process and time of sample conversion or product specifications.
Inventory reduction:
Minimize inventory levels at all stages of production, especially unfinished products between stages. Lower inventory levels means less working capital.
Improve labor productivity:
Improve labor productivity by both reducing the idle time of workers and at the same time ensuring workers receive the highest productivity at work (no job or unnecessary work). .
Effective use of infrastructure:
Make use of equipment and production space more efficiently by eliminating jams and maximizing production efficiency on existing equipment while minimizing downtime.
Increased flexibility:
Ability to produce different types of products in a more flexible manner with minimal cost and conversion time.
Improve overall labor productivity:
If it is possible to reduce production cycles, increase labor productivity, minimize incidents, congestion and downtime, the company can significantly increase production from existing facilities. Most of these benefits lead to lower production costs. In a survey conducted by Industry Week, US companies that are implementing Lean Manufacturing on average can reduce their cost of ownership by 7% by applying lean, believing that cost savings may be higher. For Vietnamese companies, the level of waste here is usually higher than that of US producers.