Lean benefits

Why do companies implement Lean?
Experts around the world believe that reasons of Lean implementation are:
● Better quality achievement starting from identifying customer’s expectations and designing processes, which meet customer requirements and expectations.
● Waste Elimination: Waste is any activity that does not add value to the product or service.
● Lead time Reduction which helps a Lean enterprise deliver the products to the customer in a shorter time.
● Reducing total costs, both direct and indirect .

So Lean is a good solution to the following challenges:
● High cost of production
● Market share going down due to product cost and delivery time
● Missed order dates

Although the results are different from company to company, it has been shown that the following improvements are common :
● Decrease:
– WIP 60%-80%
– Space needed for activities 5%-30%
– Manufacturing Lead time 50%-90%
– Rejected pieces 50%-100%
● Increase:
– Product throughput 40%-80%
– Productivity 75%-125%

Also Experiences in the companies that have implemented Lean have shown that Lean has a comprehensive influence on a company due to positive changes in:
● Encouraging the commitment of the whole company toward continuous improvement
● Focusing on customer requirements and expectations due to Pull point of view
● Morale of the Employees
● Value added activities (“Value added activities change the form, fit or function of a product or service. These are things for which the customer is willing to pay” )
● Identifying and eliminating wastes namely those actions that customer is not willing to pay for
● Reducing lead times, costs and inventories
● Work force empowerment
● Quality of products and services
● Management and employees relationship
● Change over duration
● Effective teamwork and productivity
● Neatness and space usage