How Lean Ultimately Leads to Eliminating Inefficiencies, Fueling Profitability, and Cultivating Sales

There are various benefits to Lean manufacturing, including increased profits, better customer service, and better sustainability. Learn more about Lean’s key benefits and examples of how they can strengthen manufacturing operations.

1. Improvement in Product Quality

Efficiency is the cornerstone of Lean manufacturing. When you improve efficiency in processes, this enables critical resources to focus more on quality control and innovation. Our clients in the winemaking business represent a category that is easy to understand where greater efficiency gained through Lean Manufacturing must be done without sacrificing the quality of the wine in any way.

2. Improvement in Productivity

When you increase productivity, you not only increase output, you in essence optimize where your human resources are allocated. When production personnel in packaging were involved in a rapidly growing dessert company’s challenge to improve production efficiency and quality, profitability and growth objectives were exceeded. Workforce development support accompanied improved operational flow for high-impact results, such as a 100% increase in throughput.

3. Lean Manufacturing Saves Resources

The benefits of Lean Manufacturing positively impact how companies are able to better allocate resources. Our client, La Tortilla Factory, implemented Lean Manufacturing tools based on our guidance in order to optimize their facility layout and increase throughput without the need for a new warehouse. Our collective efforts – which included implementing a new scheduling system – resulted in a reduction in labor costs of roughly $800,000, in addition to reduced setup/changeover time and a 40% increase in total yearly capacity, all without the need for a new warehouse. 

4. Faster, More Efficient Turnaround

As an example, an exceptionally innovative biotech client recognized a need to change their approach to manufacturing when faced with a challenge while controlling costs and maintaining the quality for which they are known. The Lean Manufacturing principle of value stream mapping allowed us to develop and implement a future state map identifying ways in which to minimize activities that were causing delays and improve on-time delivery. The results included an impressive 93% improvement in lead time.

5. Lean Manufacturing Leads to Greater Customer Satisfaction

As companies are able to eliminate waste and achieve better efficiencies, decrease lead times, reallocate resources to focus more on quality and innovation, all while reducing costs, this translates into better customer service and satisfaction. Lean Manufacturing leads to giving the customers what they want when they want it. They also want products at the lowest cost possible and without defects. When companies are able to achieve this by implementing Lean Manufacturing techniques, the end result should include increased sales, customer retention, and customer growth. 

6. Greater Employee Satisfaction

Good talent is able to recognize when there are inefficiencies in processes that prevent them from doing their best work. Intangible benefits of Lean Manufacturing processes that lead to tangible benefits include better company-wide communication, a more positive corporate culture, increased motivation and sense of ownership among employees. When a company improves, for example, production lead time that results in improved customer satisfaction, internal resources then take more pride in their work.

7. Enhanced Sustainability

Lean Manufacturing is a long-term endeavor. It is ongoing, leaning heavily on one of its principles, continuous improvement. Companies that embrace this particular aspect of Lean Manufacturing and that do not sacrifice long-term gains for short-term solutions are more responsibly positioned for success in the long run. They become better businesses.

At the end of the day, each benefit of Lean manufacturing combined leads to increased profits and business opportunities. Why wait to implement Lean manufacturing?

Need help with Lean training or implementation? Contact Manex at 925-807-5100, or send an email to [email protected].

Manex Consulting’s expert team of Lean consultants for manufacturers is the most hired in Northern California. Lean manufacturing consulting is among Manex’s top areas of expertise. We bring to your team specific skills in analysis, and advise you on small or major adjustments to streamline your manufacturing processes. We work closely with your management team to teach them how to increase your return on investment (ROI) while also training them in effective Lean methods.

Ultimately, our intent is to quickly achieve cost efficiencies and increased profits for your manufacturing business.