Advantages Of Lean Manufacturing

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while simultaneously decreasing

“Lean is a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the **product at the pull of the customer in pursuit of perfection.” Lockwood [24].

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while

The word lean was coined by Womack, Jones and Roos in their book, "The machine that changed the world". This book provides insight into the history of Lean Manufacturing.

The origins of lean thinking is actually created from the manufacturing industry. In the manufacturing or production industry, lean management design approach main objective is focusing on the elimination of waste and having a smooth workflow through a right process. Lean also enables the organization to improve performance.

Lean is defines the manufacturing philosophy that reduces the time between the shipping and customer demand, which based on the systematic method by eliminating waste, that means giving the customer what they want when they want it, and don 't waste whatever. Rahmana, Sharif and Esa (2013) suggested lean production is mentioned to improve the company 's performance from the philosophy in reducing waste in order. That means, lean system destination is the decrease cost by removing the non-value activities, which they are applying a category of tools and techniques for checking and eliminating defective in the production process. In the Evenort Company should emulate the five overriding principles of lean thinking in terms of implementing lean that there is guarantee the company has been driving correctly in the lean manufacturing (Cardiff 2015) as can show in table 1.

One obstacle is the perception that the use of lean manufacturing solutions is, at best, nothing more than a trend. In addition, at worst, a brief craze. It is often observed as nothing more than a repackaging of fundamental industrial engineering principles dressed up in new clothes, and flaunted in new terms to appeal to a new industry. Lean manufacturing is sometimes seen in many industries as a collection of techniques, known to be effective in the auto industry, which some people are now trying to impose on a completely different industry. This means that perceptions have to be changed.

Generally speaking, aims lean management to operate the most efficient and and effective organization as possible by having the least costs and zero waste. Thus, Lean should form part of a company wide strategy with the objective of decreasing its operating cost base and increasing market share (Wilson, 2010). Event though, Lean originates from manufacturing, the relevant principles are now increasingly being applied to the service sector (NIST, 2003).

Lean management looks for different ways to eliminate factors that waste time, effort or money. This is achieved by analyzing a business process and then revising it or cropping out any steps that do not create value for consumers. Lean Management philosophy is based on the idea that organizations should set their strategies according to what the consumers really value, systematically eliminating waste both within the firm and along the process of supply chain. Many companies when implementing the Lean Management ideology complains that traditional Management Accounting Systems are unable to support their projects. At best, they are perceived as bureaucratic tasks, and at worst, they are considered a key constraint to both the acceptance and success of lean projects implemented in their organizations. The failure of these traditional Management Accounting tools and techniques has led to management consultancies in coming up with and developing a few range of Lean Accounting

There are two major pillars of lean production system. One is Just-in-Time system and other is

Literature review The implementation of lean manufacturing like any other productivity improvement initiative is believed to harbour enormous difficulties (Denton and Hodgson,

Lean is the elimination of waste. Customers do not want to pay for waste they want to a good product at a reasonable cost. Waste is waiting, waiting for paint to dry, waiting for material to get from one process to another. With the elimination of waiting, more time is focused on the production process. It is also inefficient transporting of material to and from the production facility. It is in shipping trucks half full or calling the truck back because of missed or delayed shipments. The third is over production. Overproduction generally occurs when yields are poor and if the customers’ needs are to be met, more material than what is required to fill the order is processed. Over production can also occur when the forecast is inaccurate or, constantly changing. Forth is the production of defects or, continuing to making errors and mistakes. Customers do not want to pay for mistakes and it leads to over production and poor customer service. Next is unnecessary movement or motion.

Authors of the book Lean Thinking: Banish Waste and Create Wealth in Your Corporation, James P. Womack and Daniel T. Jones, focus on Lean thinking, the five principles of Lean with details on how to implement these ideals in their text. Additionally it provides evidence as to how creating a Lean factory will boost productivity and reduce inventories.

Lean Manufacturing focuses on eliminating non-value added processes and waste and try to produce only to satisfy customer demand.

According to (Okpala, 2014) “In Lean Production System, waste (which is referred to as muda in Japan) is described as anything that destroys resources and does not add any value to the customer’s requirements. This is because manufacturing waste is the application of resources like raw materials, labor, equipment, or machines over and above what is