What is Lean Model? It is really simple to use but highly effective. How to apply Lean model in production effectively?
Lean model in production
History of Lean Model
The purpose of the Lean model is to identify waste in the production process of the enterprise. According to Benjamin Franklin, reduce unnecessary waste. Business profits and sales will increase.
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Following Benjamin Franklin, other major economists also published books in his view. However, it was not until 1990 that the term related to the Lean model was born.
What is Lean Model?
basic lean model
Lean model is a combination of methods and methods applied in management to eliminate waste and irrationalities in the production process. In order to have lower costs and higher competitiveness than manufacturers’ competitors, eliminating inefficiencies is essential.
This model helps to increase flexibility according to the customer.
It has 3 main levels:
Lean manufacturing is lean manufacturing, Lean enterprise is a lean businessLean thinking
According to the Lean model principle, focus on identifying and eliminating costs that do not add any value to the customer. But it increases costs in the chain of production activities of enterprises.
In business operations, excess inventory waste is related to the following topics:
WaitingTransportation, AirlineRandom OperationOverworkingProduct Defects
Benefits of Lean Model
Improve the ability to respond flexibly, reduce pressure on input resources.
Every time the business has achieved good results in terms of production transformation. On-time delivery is guaranteed. As production time and cycle time improved. The ability to meet demand for output will also be improved, based on physical resources. The company’s business situation is better.
Improve business sales
Improve productivity, improve the quality of products and services of enterprises
Minimize waste and waste, use input resources efficiently. In increasing labor productivity, employee performance. Reduce moves and redundancies in the workflow. Each employee directly or indirectly involved in the product creation process will have a clear perception and thinking.
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From there, it contributes to the company-wide value chain, to provide customers with principles.
Save time, production process and service provision
By streamlining value-creating processes, minimizing non-value-adding activities. Eliminate waiting time in the process, shorten the production time of different products
Avoid tangible or intangible waste due to excess inventory.
When inventory of unfinished products between stages. Finished products need to be shortened time. Minimizing the time to sell finished products.
Improve the efficiency of using machinery and equipment
Equipment and machinery technology 4.0
Machines or tools are subject to wear and tear over time. The use of machinery operating at full capacity of the machine, reducing the cost of machinery wear and tear. When these costs decrease, revenue stays the same, and profits increase.
Lean model, will be a reasonable choice for your business. Wish you success in business.
SUBJECT TO LEAN MODEL
Based on the characteristics of the Lean model, which is to eliminate waste, efforts to create added value for customers. The scope of objects for the Lean model are those that can cross the boundaries of the media production model. Especially, this model is suitable for business models of beauty, technology production,….
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With the article on What is Lean model, you can grasp basic information about the method with in business administration.
