The Advantages Of Lean Methodology

Lean Methodology brings significant benefits to the company. An example of this is Toyota, which has managed to grow in a highly hostile climate. From a small local company has become a prominent company leader in the automotive sector, strong and with collaborators and customers worldwide.

The Lean Methodology approach brings constant improvements and makes the company adapt quickly to changing times thanks to greater flexibility that allows immediate identification of problems as they arise and solutions so as not to slow down processes. Therefore, many benefits can be achieved by applying this approach, such as enhanced production, optimization of resources (costs and times), and improved customer satisfaction due to the high standards maintained in all phases.

Enhance Production

Enhancing production is one of the benefits of the Lean Methodology. Understanding what is of value to the customer and responding exclusively to his real needs allows us to produce only what can be quickly sold. From a pull point of view, production is directly driven by market demand.

This eliminates or minimizes the goods in stock, unnecessary movements and transport. It is produced better, obtaining quality results, using the least number of available resources. Overproduction is one of the phenomena that Lean Methodology aims to eliminate since it is considered the first source of waste and loss of resources in economic and time terms.

Optimize Costs

One of the Lean Methodology objectives is to optimize the resources already owned before deciding whether to make further investments. It starts, therefore, precisely from the evaluation and enhancement of everything already present in the company, tidying up, eliminating what is not helpful and thus cutting unnecessary costs. The enhancement of the resources already owned leads to a constant improvement in performance without increasing costs. 

This can also be accompanied by a policy of significant investments which periodically introduce innovations. Finally, to optimize costs, the concept of stocks is changed, that is, of all the goods that are waiting to be sold or processed. These resources cause management costs (warehouse, travel, etc.) and waste of space and financial resources. They also risk losing value over time, worsening the quality of what is offered to customers. Therefore, they must be eliminated or minimized.

Optimize Times

Production times are also optimized with Lean Methodology. All expectations concerning raw materials management and stocks waiting to be processed are reduced. The flow must flow smoothly, step by step, until the value requested by the customer is created.

In each of its sequences, the entire production process is reviewed to eliminate blockages and delays and solve problems that come to light during the control phases. Times are rationalized as much as possible, and production is organized with the creation of small batches, giving up mass production on a large scale.

Improvement Of Customer Satisfaction

In addition to reducing wasted resources and optimizing time and costs, the Lean Methodology maintains the primary objective of fully satisfying the customer’s requests. The much sought-after value is the one desired by the latter, which dictates production rules. Therefore, the aim is to use the least amount of resources possible, as long as the production quality is not affected. Performance must always be significant and continuous improvement must be encountered.

This is a winning approach if we consider that people have ever higher standards and competition between companies is ever tighter. Companies must continuously improve the quality of the products and services offered to achieve high customer satisfaction. Focusing on what is of value to them is the only way to achieve results and greater economic profits.

Greater Economic Stability

Lean Methodology has developed during a period of economic crisis to revive the fortunes of a company vigorously tested by the end of a war conflict, the difficulty of being able to access new resources and being on the verge of bankruptcy. The need to change the approach and the impossibility of following the logic of mass production has led to the development of a leaner and more flexible method attentive to customer satisfaction needs. In a short time, the new approach paid off and spread worldwide.

Among the objectives it helps, there is precisely that of more excellent economic stability, which helps to overcome moments of crisis with force and allows us to cope with new investments. After identifying the value, the lean approach leads companies to eliminate all resources that do not add value to the processes. This allows companies to reduce unnecessary costs and improve process efficiency significantly. As profits rise, companies may find themselves in a stronger financial position in an economic environment that is increasingly unstable today.

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