Lean manufacturing is a management philosophy derived mostly from the Toyota Production System. Lean manufacturing is a production practice which aims to reduce wastage of expenditure of resources. The system aims to reduce the expense of product design or resources that may not create value to customers in a customer's view. Manufacturers should understand and know what customers need and what they would like to pay for in terms of the actions or processes for the products. Suppliers have to be responsive to customers' needs as well as ensuring market competitiveness so they have to focus on the customer's view of product value and avoid valueless work. Hence, lean manufacturing can decrease waste and improve efficiency in manufacturing.
Lean manufacturing steps:
- Identify customer wants.
- Identify actions to add value to products, such as design, development, and production tasks.
- Manage information on ordering, service schedule, and delivery.
- Establish pull manufacturing so that products produced are on customer orders.
- Establish continual improvement approaches to reduce wastage.
The Toyota Motor Corporation also uses the lean manufacturing system to deploy manufacturing processes that address customers' needs and wants in terms of five expectations: safety, quality, delivery and production, cost, and technological capabilities.