Lean is considered a production management method that is both simple and very effective. SO ? How to build Lean effectively? Readers, please find your answer in the following article by Ms. Uptalent!
CONTENTS:
1- What is the Lean model?
2- What are the roles and advantages of the Lean model?
3- Where to apply Lean?
4- Build an effective Lean model
5- Typical examples of companies successfully applying the Lean model
1- What is the Lean model?
The Lean model is defined as a combination of methods and methods applied in the management system to eliminate waste and unreasonable points from the production process.
The essence of Lean is management according to the Lean philosophy. Initially applied only to the manufacturing sector, it then gradually expanded to other industries.
The Lean model was developed based on the idea of increasing productivity and reducing waste in production activities. As a result, if businesses can minimize unnecessary waste, their sales and profits will increase.
Cost elimination is highly regarded for its effectiveness because it can help businesses produce more cheaply and be more competitive than their competitors.
2- What are the roles and advantages of the Lean model?
The Lean model is applied by companies because of the benefits it can bring. Such as:
2.1- Improve response capacity, reduce pressure on input sources
If a company achieves optimal production results, the probability of on-time delivery will be higher. Additionally, the efficiencies resulting from improved production lead times can help companies improve their ability to meet production needs based on available resources.
All of the above factors will help improve the company’s business efficiency and ensure its ability to respond to market fluctuations.
2.2- Improve productivity and improve the quality of products and services
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Understanding what Lean is and applying it to businesses can help minimize waste and waste from the production process and ensure more efficient use of input resources.
Applying Lean also helps reduce redundant operations during the work process. Employees involved in production will clearly know what to do. From there, employee productivity will increase.
2.3- Shorten production time
Applying the Lean model can help companies streamline production processes and reduce activities that do not create value. From there, businesses can eliminate wait times and maximize production time.
2.4- Minimize waste due to excessive inventory
For production processes where semi-finished products exist in the middle of the process, Lean is an effective solution to help limit the time spent on unfinished products. From there, businesses can reduce the time it takes to create finished products and limit waste from excess inventory.
2.5- Improve the efficiency of use of machines and equipment
What all types of machinery and equipment have in common is that they all wear out over time. By applying Lean, companies can operate their machines at maximum capacity and reduce wear and tear costs.
If the above costs decrease without changing revenue, profits will increase. Therefore, companies that choose Lean can experience great business success.
3- Where to apply Lean?
When you learn what Lean is, you will see that the true nature of this model is about eliminating unnecessary waste and creating added value for customers. This is why Lean is widely applied today in many different fields, not just manufacturing.
Here are some common applications of Lean:
3.1- Lean Production (Lean Manufacturing)
Lean manufacturing, also known as lean manufacturing, is currently widely used around the world to eliminate waste and unreasonable points in the production process. From there, companies manage to reduce their production costs and improve their competitiveness compared to competing companies.
In addition, Lean Manufacturing can also help companies improve their ability to respond to market fluctuations and increasingly stringent customer requirements.
3.2- Lean logistics
Lean Logistics is a method for optimizing and efficiently managing transportation, storage and delivery of products to customers.
By applying Lean Logistics, businesses can deliver products to customers faster, ensure goods are always in good condition when they reach customers, and minimize unnecessary costs.
In addition, Lean Logistics also helps companies improve the performance of supply chain processes and ensure their ability to respond flexibly to changing customer needs.
However, companies can only effectively apply Lean Logistics by ensuring close collaboration between departments and stages throughout the supply chain.
3.3- Lean thinking
Lean Thinking is understood as Lean thinking. It is a model focused on eliminating waste and inefficiency.
In the Lean Thinking model, inventory is the cause of all problems. Excessive inventory can hinder a business’s ability to grow and mask real problems.
If it is possible to reduce inventory, businesses will be able to clarify the issues holding them back and propose appropriate solutions.
Essentially, Lean Thinking requires companies to continually identify and eliminate waste according to the rule of seven zeros:
– No defect.
– No excessive batch volume.
– No configuration.
– No damage.
– Do not carry too much.
– No downtime.
– Does not fluctuate.
3.4- Lean company
Lean Enterprise is understood as a lean business model. In this model, all parts that do not directly create value for the final product are considered waste.
As a result, the Lean Enterprise model primarily focuses on creating value and eliminating wasted resources on unnecessary activities and processes.
The operating mechanism of Lean Enterprise will start by considering the quality of products and services from the consumer’s point of view to determine their value. Next, the company will review the entire process to reduce activities that do not provide value.
4- Build an effective Lean model
To build an effective Lean model, in addition to understanding the nature of Lean, you must also master the following principles:
4.1- Good knowledge of waste
To apply Lean successfully, you must be aware of which factors can create value and which do not add value to customers and businesses. Once you have identified the unnecessary items, you need to eliminate them aggressively.
4.2- Standardize the production process
The Lean model requires companies to establish standard processes for each stage of production. As a result, companies will need to write detailed instructions on the sequence, time and results to be achieved so that employees can work properly.
This is of great importance to businesses because it helps minimize interruptions to operations and limits errors that can damage equipment.
4.3- Ensure continuity
The objective of Lean is to aim for a continuous production process, avoiding congestion, interruptions or feedback that wastes time.
If a company successfully implements Lean, production time can be reduced by up to 90%.
4.4- Production drawn
Pull manufacturing is also known as Just-in-Time (JIT). It is a production model that focuses only on what is needed at the right time.
This means that each factory produces only according to the requirements of the next stage.
4.5- Ensure quality from the start
In the Lean model, every worker is part of the production process. Their mission is to ensure that waste is eliminated at the source in order to effectively control product quality.
4.6- Continuous improvement
Lean requires the active participation of production personnel to continuously detect and eliminate waste. Through this, the production process will become more perfect.
5- Typical examples of companies successfully applying the Lean model
Because they understand the benefits of Lean, many companies have applied it to their quality management and production optimization processes.
Every company will have a different way of applying Lean. Here are some typical examples of successful Lean applications:
5.1-Toyota
Toyota is a pioneer in the successful application of lean production methods. They researched, developed and made the benefits of this model known to the world.
By applying Lean, Toyota has managed to eliminate all waste. At the same time, they also develop many techniques to minimize defective products.
5.2-Intel
By applying Lean, Intel reduced chip production time from 3 months to 10 days. In addition, Intel also effectively uses quality control and waste reduction factors to improve productivity and product quality.
5.3-Nike
Lean production techniques have helped Nike reduce low-quality labor in overseas factories by up to 15%. The reason they can do this is because Lean has the ability to screen highly skilled workers very well. Along with this, it also provides higher values to employees and the entire company.
5.4- Nha Be clothing company (NBC)
NBC started implementing Lean in 2013. As a result, this method helped them improve their productivity by 20% and the rate of defective goods decreased from 10% to 3%.
Besides NBC, garment companies such as Viet Tien and Hoa Tho also applied Lean a long time ago and achieved great success through it.
6. Conclusion
It is seen that Lean is one of the main solutions that can help companies reduce their production costs if they know how to apply it appropriately.
Currently, this model is widely used in many companies across all sectors and fields.
I hope this article by Ms. Uptalent helped you understand what Lean is and can effectively apply this method to your business. Good luck!
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