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Key to growth - Lean manufacturing
Oct 2008
Page 1 of 2
By waste, we mean any activity that absorbs or claims resources without creating any value. Lean thinking essentially seeks to provide a way to specify value and 'create' actions in the best sequence to achieve more with less of everything human effort, equipment, time, space, resources all lined up in perfect harmony to meet the required results with maximum quality.
Gone are the days when the basic competitive elements used to be material, capital and the capability for quality production. The fast-changing world economy has completely changed the manufacturing scenario today.
Today, professional capabilities, information-based practices, universal knowledge and creativity at large are emerging as the benchmarks of competitive strategy. While Indian organisations may be lagging far behind, a start has been made and the process has been set in, never to stop.
Surprisingly, competitiveness has remained one of the most understudied areas of international business in India. There are many factors that are responsible for this state of affairs in the Indian economy.
Lean manufacturing is like taking to a systematic approach for identifying and eliminating waste in operations through continuous improvement for doing everything more efficiently, reducing the cost of operating the system and fulfilling the customers desire for maximum value at the lowest price. The mantra is: lowest inputs for highest output and quality.
A number of organizations in highly developed economies like Japan, USA, UK and even in India and other countries have dexterously translated their lean thinking into workable practices and tremendously benefited to become world class organizations. Lean Manufacturing has proved to be a very reliable and good management practice.
Those who have adopted lean manufacturing practices have achieved superior quality higher productivity, perfect delivery performance, overall customer satisfaction and excellence - all with lower cost.
In a nutshell, lean manufacturing is all about driving towards achieving profitability and productivity through continuous improvement and resource waste elimination.
The only option for India
If Indian industries have to achieve a competitive edge in the world market, adopting lean manufactruing practices is the only answer. Evolved out of lean thinking, the lean manufacturing eliminates 'waste' on all fronts.
Besides, Lean manufacturing leads to higher volumes through lower costs and is the only option left for Indian firms to attain competitiveness and to earn profit.
Lean manufacturing means flexibility and small-batch production that makes goods suited to customer needs and meet delivery schedules with the least cost in terms of inventory of raw material and finished goods.
Lean Manufacturing and Indian SMEs
Increasing size of the internal market through lower costs and taking to exports, as a cushion against recession at home would be the right strategy for Indian manufacturers.
In today's competitive world while many large scale companies have taken initiatives to implement lean in their organizations, small & medium establishments (SMEs) also need to follow the lean thinking and implement the same to achieve their set goals.
To meet the challenge of stiff competition and imports from overseas, the Indian SMEs are left with no choice but to take to manufacturing practices that would induce cost effectiveness and improvement in quality standards.
Adoption of lean manufacturing by Indian firms will not lead to redundancy because the surplus manpower arising from effective and efficient deployment of resources will be absorbed in meeting the growing demand.
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