{"id":10010,"date":"2022-02-09T15:29:54","date_gmt":"2022-02-09T23:29:54","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10010"},"modified":"2025-04-16T11:49:26","modified_gmt":"2025-04-16T18:49:26","slug":"understanding-lean-manufacturing-principles","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/02\/understanding-lean-manufacturing-principles","title":{"rendered":"Understanding Lean Manufacturing Principles"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10011&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Remaining competitive is a top priority for any manufacturing operation. To stay ahead, companies must be knowledgeable about production trends contributing to their competitors\u2019 success. One such trend in the manufacturing industry is the use of lean manufacturing principles that help companies clean up inefficiencies and work smarter. Learn more about what lean manufacturing is and the five principles helping manufacturers get ahead.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is the Definition of Lean Manufacturing?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Lean manufacturing is a production method intended to eliminate waste and inefficiencies in manufacturing operations. Also known as lean thinking, this method is now being used beyond the manufacturing industry in countless businesses, to increase production and profits, reduce costs and improve quality. Due to the proven success of lean manufacturing principles, manufacturing companies around the world have adopted the method in an effort to better compete against lower-cost companies.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is the History of Lean Manufacturing?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The concepts of lean manufacturing were introduced on a large scale by Henry Ford. Ford explored ways to optimize production efficiency in his factories and was successful in creating methods that would increase production and product continuity. His downfall, however, was in creating product variety. Eiji Toyoda improved upon many of Ford\u2019s processes to develop a method that improved production while also allowing for the variety consumers wanted. <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2018\/03\/taiichi-ohno-toyota-production-system\" rel=\"noopener\"><span style=\"font-weight: 400;\">Toyoda and Taiichi \u014cno coined the lean manufacturing principles<\/span><\/a><span style=\"font-weight: 400;\"> that shaped the Toyota Production System. These principles were later explored and popularized in the book Lean Solutions by <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2018\/02\/dr-james-p-womack-hero-lean-manufacturing\" rel=\"noopener\"><span style=\"font-weight: 400;\">James Womack<\/span><\/a><span style=\"font-weight: 400;\"> and Daniel Jones.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Are the Five Principles of Lean Manufacturing?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The principles of lean manufacturing are foundational to Toyota\u2019s success, but they can help manufacturers and various other industries create production processes that eliminate inefficiencies and create products of better quality that are more aligned with what consumers demand. The five lean manufacturing principles include the following.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">1. Identify Value<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The first principle of lean manufacturing is to identify what your customers value and how your products meet those values. The idea behind this principle is that manufacturers shouldn\u2019t waste time, money, and labor on product aspects that customers don\u2019t even need or want. By eliminating these wasteful steps, manufacturers end up with a product and process that incorporates only what\u2019s necessary to please the customer.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">2. Map the Value Stream<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Next, you must identify the value of a product throughout its entire lifecycle. This involves mapping a product\u2019s value from design to customer use to disposal. In doing this, you can better understand a product\u2019s value and minimize production steps that do not contribute to value.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Create Flow<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This step is about optimizing operations on the production floor to create a process without holdups. A product should be able to flow from production to shipping without interruption. To achieve flow, analyze how people, equipment and materials are used to identify ways the shop floor can be optimized. An improved flow results in reduced production time, inventory size and material handling.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">4. Establish Pull<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This principle centers on using a pull-based production system rather than one that is push-based. Push-based systems involve purchasing supplies and going through production even when there isn\u2019t an order. This leads to large inventories and a lot of work in progress. Pull systems, on the other hand, begin with a product order. <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/03\/improving-traceability-and-material-handling-systems-efficiency\" rel=\"noopener\"><span style=\"font-weight: 400;\">Materials are purchased<\/span><\/a><span style=\"font-weight: 400;\"> and work is performed in response to orders, in order to reduce inventory, increase output, and eliminate overproduction and errors. A pull method also <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/01\/actionable-insights-inventory-expired-and-expiring\" rel=\"noopener\"><span style=\"font-weight: 400;\">prevents inventory from expiring<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">5. Seek Perfection<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Though seeking perfection may seem straightforward, it can be the hardest principle to adopt and maintain. Seeking perfection requires you to constantly improve. It can also require a culture shift throughout the entire operation. This Kaizen philosophy is often used to help companies create a culture in which employees seek perfection, focusing on small but valuable changes, instead of merely accepting the status quo. Over time, having the priority of perfection in all areas increases efficiency, productivity and quality.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Examples of Lean Manufacturing in Action<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Over the last several decades, lean manufacturing has not only transformed <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2016\/03\/lear-is-standardizing-its-lean-manufacturing-model\" rel=\"noopener\"><span style=\"font-weight: 400;\">automotive manufacturing<\/span><\/a><span style=\"font-weight: 400;\">, it is now used in a variety of industries to improve production and profitability. Consider the printing industry, a field that has the risk of seeing a lot of waste. Printers often report storing large inventories, with a percentage of the final product ultimately being thrown away. To improve efficiency, identifying and mapping value can save considerable cost and limit printing to only what customers want. It can also support meeting delivery times.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shift changes are an area that can accumulate revenue-losing downtime for many industries. For shop floors that have three shift changes a day, this can often result in well over an hour of downtime and lost production. By identifying where a better flow can be created, this disruption can be minimized and result in higher production per day, and therefore per year, to greatly improve a company\u2019s bottom line.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The benefits of adopting lean manufacturing principles can greatly improve almost any industry, resulting in:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduced inventory<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decreased spend<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved efficiency<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher quality<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduced downtime<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased production<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identified <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/07\/total-manufacturing-cost-formula\" rel=\"noopener\"><span style=\"font-weight: 400;\">Total Manufacturing Costs<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While learning and incorporating the basics of lean manufacturing can take time, the return is proven to be well worth it.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Implementing Lean Manufacturing Principles<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are different approaches and tools that are used in manufacturing that can help with the adoption and integration of lean manufacturing principles. For example, using <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/10\/what-is-5s-lean-manufacturing\" rel=\"noopener\"><span style=\"font-weight: 400;\">5S methodology<\/span><\/a><span style=\"font-weight: 400;\">, implementing a <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2018\/03\/beginners-guide-to-quality-management-systems\" rel=\"noopener\"><span style=\"font-weight: 400;\">Quality Management System (QMS)<\/span><\/a><span style=\"font-weight: 400;\"> and the use of an <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/what-is-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">Enterprise Resource Planning (ERP)<\/span><\/a><span style=\"font-weight: 400;\"> System can help promote efficiency and further streamline manufacturing processes.\u00a0<\/span><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD\u2019s next generation manufacturing &amp; supply chain solutions<\/span><\/a><span style=\"font-weight: 400;\"> help manufacturers become more adaptive, more agile, and more lean by giving companies full visibility across all operations and real-time insights into the health of each business area. These solutions allow manufacturers to remain competitive, trim waste and have overall better yield. Learn more about our <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/cloud-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">ERP solutions<\/span><\/a><span style=\"font-weight: 400;\"> and how we can help transform your business into a lean, optimized organization.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10011&#8243; img_size=&#8221;full&#8221;][vc_column_text]Remaining competitive is a top priority for any manufacturing operation. To stay ahead, companies must be knowledgeable about production trends contributing to their competitors\u2019 success. One such trend in the manufacturing industry is the use of lean manufacturing principles that help companies clean up inefficiencies and work smarter. Learn more about what lean [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":10011,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[199],"tags":[2027,1856,2021,2024,112,2025,2022,59,2018,2023,2019,148,2026,2020],"class_list":["post-10010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing-trends","tag-5s-lean","tag-5s-methodology","tag-basics-of-lean-manufacturing","tag-create-flow","tag-erp","tag-establish-pull","tag-identify-value","tag-lean-manufacturing","tag-lean-manufacturing-principles","tag-map-the-value-stream","tag-principles-of-lean-manufacturing","tag-qms","tag-seek-perfection","tag-what-is-lean-manufacturing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding Lean Manufacturing Principles | QAD Blog<\/title>\n<meta name=\"description\" content=\"Learn the five key principles of lean manufacturing and how they can be applied. 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