Benefits of implementing lean manufacturing in India.

Category: Education

Every organization / industry (Small, medium and large) in India are fighting to survive in today’s highly competitive global economy. Manufacturing has not brought much new employment, and most of the recent rise in manufacturing employment has been in the informal sector, where workers are not covered by social security arrangements. There are several more reasons due to which manufacturing companies are not able to meet their business goals and losing their productivity, due to which Lean manufacturing came into existence and improved the quality and productivity. What is Lean Manufacturing? Actually Lean manufacturing has originated from Toyota production system, the most successful automotive manufacturer. Lean Manufacturing in Layman language: It is a business model which emphasize in eliminating Non value added activities (Waste) while delivering quality products on time at least cost with greater efficiency and ultimately helps you in lead to Productivity, Peace & Prosperity Technically, Lean manufacturing is the proven method to reduce costs, eliminate wastes, increase productivity, maintains high levels of quality and still make a profit. Benefits of implementing Lean Management Every organization should implement lean business model which can help the organization to survive its difficult financial times. Implementing lean manufacturing and proper application of its principles which will eliminates waste in your processes and lead to productivity, prosperity and peace. There are 8 keys of wastes: 1. Transport 2. Inventory 3. Motion 4. Waiting 5. Over-processing 6. Overproduction 7. Defects 8. Creativity Typically Lean will improve: ü Quality ü Productivity ü Lower level of Inventory ü Less space required ü Higher profits increased business ü Faster Development ü Greater customer satisfaction ü Increase Employee moral Lean Improves Your Profits Most companies work on the following formula; Selling price = Profit + Costs But if you’re selling price is too high you customers will not buy from you, the selling price is in reality something that is fixed by the market and not by you. If you don’t offer your product or service at the right selling price you will not retain or gain customers. You should work on the following; Profit = Selling price – Costs Lean works to drive down your costs; therefore the more you save the higher your profits. Every penny that you save is added directly to your profit. Companies that implement Lean typically make significant cost savings that have a very real impact on the company’s profitability. As mentioned earlier you only have to look at the performance of Toyota against the big US car makers to see the difference. #VEDZEN is a lean consultant in pune which works on Lean Kaizen model which helps the organization in achieving the #Productivity, #Peace and #Prosperity. We accomplish by strict adherence to learning from the ancient ‘Veda’ as well as the ‘Zen’ philosophy. (this is what makes us “VEDZEN”) and focus on the continuous improvement and respect of the employees. Our purpose is to do a gap analysis of the current situation in view of operational excellence and diagnose the pain areas of organization, which are effecting the organization in accomplishing their targets. For more Information click on: http://www.vedzen.com