The Effects of Lean Manufacturing

by Jennifer VanBaren; Updated September 26, 2017
An increase in profits is just one of the many effects of lean manufacturing.

Lean manufacturing is a technique based on business principles and practices that help companies increase performance. Taiichi Ono, who worked for Toyota Motor Corporation, started this theory. The goal of this system is to increase performance through optimization of all processes an organization uses. Companies that use lean manufacturing typically have very positive results.

Reduced Waste

Lean manufacturing focuses on many aspects of business processes, including waste reduction. Under this system, all of the processes a business uses are analyzed and investigated. Any processes that do not offer positive value to the company or its products are eliminated. By doing this, waste is reduced and money is saved. This focus ensures that every process used provides value.

Faster Production Times

Lean manufacturing usually results in shortened production times. Because lean manufacturing weeds out all of the unnecessary processes that a business uses, the time it takes for production cycles generally decreases.

Improved Quality

Companies that use lean manufacturing often use Six Sigma as well. Six Sigma is a technique developed by Motorola that focuses on product quality. Companies that use lean manufacturing coupled with Six Sigma are able to improve the quality of the goods they produce by studying each process used during manufacturing.

Customers Benefit

Customers also benefit from lean manufacturing. Through improved quality and reduced waste, companies are likely to be more competitive in the marketplace. This amounts to lower prices, less defective goods and better overall quality of the goods purchased by the company’s customers. This gives customers increased value for these goods.

Increased Profits

When lean manufacturing is used properly in an organization, the overall end result is increased profits. The theory behind this is that unnecessary costs and processes are removed and quality of products is increased. When the product quality increases, the products offer more value to the customers, causing them to purchase more products. Increased sales and decreased expenses results in increased profits.

Constant Improvements

Once a lean manufacturing system is in place and operating correctly, companies continue to look for ways to improve. This means constantly evaluating and reevaluating the processes they use and the quality of the goods that they produce.

About the Author

Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.

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