Mass production and mass marketing, which emerged with the Industrial Revolution, are gradually being replaced by individual production and direct marketing. The main reasons for this situation are the changes experienced in the customer profile and the technical innovations. Another type of production that is made against mass production is the lean production type. In this production type, all products and services that do not express any value to the customer are eliminated. The lean manufacturing method, which means to offer the products that the customer wants at any time and by minimizing the costs, has the advantage of avoiding unnecessary stages and preventing unnecessary costs.
What is Lean Manufacturing?
Lean manufacturing is a production orientation that throws out all the elements that are not mandatory for the production of a product or service. In this direction, the main purpose of the enterprises is to stay away from unnecessary high cost and in doing so, the production of the demanded products is not disrupted. Cases such as high raw material inputs used in mass production and high storage costs disappear in the lean manufacturing approach. For businesses whose main purpose is to increase their profitability, reducing costs is an important case. In mass production, firstly, when the product is produced and then the customer is searched; In lean production, the demands of the customer are taken into consideration first, the customer is well known and then the production is made.
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5 Principles of Lean Manufacturing
Lean manufacturing approach has 5 main principles. It is possible to list these principles as follows:
- Value: Lean manufacturing approach advocates that it is wasted to keep a product that does not need it. Even if an enterprise determines the value of a product, it is the customer’s need that reveals its value. A product that the customer does not need and will buy does not make sense, although it is very expensive for the manufacturer.
- Flow of Value: Starting from the raw material state, the value passes to different hands at every stage of the production process. However, during this flow, some stops are unnecessary and cause unnecessary waste.
- Continuous Flow: Storing goods that are not needed for a long time by mass production means waste in terms of lean manufacturing approach. Instead, little but continuous production is required.
- Pulling: The pulling process, which starts with a demand to be made by the end consumer of a product, allows the production to be efficiently and in accordance with the need.
- Perfection: One of the basic principles of lean manufacturing approach is perfection. Businesses that adopt the simplicity orientation in production reach an excellent level in their performance.
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Why You Should Implement Lean Manufacturing?
There are multiple reasons for lean manufacturing for businesses. Even the reducing effect of this method on costs is a reason for preference. In addition, in this production orientation, there are no situations such as the emergence of surplus products or the production of the produced products. Another point that makes this production method advantageous is to ensure a perfect harmony between the customers and the company, and to enable the production and marketing process to be realized in the most satisfactory way for the customer.
How to Implement Lean Manufacturing?
Businesses that want to adopt lean manufacturing orientation in production must first make a good business planning process for this. In addition, activities aimed at determining the needs of customers should be emphasized. After the customer and business relationship is well designed, the product needed by the customer should be produced and presented to him when he needs it. This situation prevents the customer from being overwhelmed by unnecessary marketing techniques. The relationship between the consumer and the business, who is engaged only with the product at his own request, improves considerably, which in the long run causes the customer to gain brand loyalty.