Lean Production Methods – Lean Production in Practice

What are Lean Production Methods?

Lean production (also known as lean manufacturing) is a form of production organization in which all production factors - from operating resources and human resources to planning and organization - are used sparingly and efficiently. 

Lean production focuses on improving throughput times and process quality, as well as the associated increase in efficiency and cost minimization.

Lean production is based on five fundamental principles:

• Value: This principle focuses on customer value. By concentrating on product quality and pricing, non-value-adding activities are automatically eliminated.
• Value Flow: All work steps required for the manufacture of a product are examined for wasteful and avoidable activities and optimized.
• Flow: To avoid delays and downtime in the production process, a trouble-free value chain should be created throughout the entire process.
• Pull: This principle aims to avoid stockpiling. In lean production, manufacturing is based on actual customer orders rather than forecasts.
• Perfection: According to this principle, there is no optimal, final state within production. Rather, it is a continuous improvement process.

Lean production can be embedded in lean management: a form of corporate management through which these goals are to be achieved across all departments.

Lean production methods are practical tools and processes within lean management. While lean management represents the holistic approach and strategy for making companies lean, flexible, and value-oriented, lean production methods are the concrete approaches for implementing this philosophy in manufacturing.

Typical lean production methods include*:

5S | Kaizen | Kanban | JIT | Poka Yoke | Value stream mapping | SMED

* Since the origins of lean production are attributed to Japanese companies, Japanese terms are used to describe some of the methods.

Lean Production Methods in Practice

Lean production encompasses a variety of methods aimed at avoiding waste and designing efficient processes. The most important lean production methods are presented below.

5S

The 5S method aims to create a structured, clean, and safe workplace. The abbreviation 5S stands for the five steps that comprise the method: sort, set in order, shine, standardize, and sustain. In practice, this means, for example, returning unnecessary tools or materials to their storage locations, arranging work equipment logically, and cleaning workplaces regularly.

In production in particular, 5S leads to greater clarity and less time spent searching. A typical example is the marking of predefined storage areas for tools or pallets so that it is immediately apparent if something is missing or in the wrong place. 

Standardizing clear processes - also with the help of checklists - ensures that improvements are sustained. The self-discipline stage is particularly crucial, as the benefits can only be felt in the long term if all rules are consistently adhered to.

In addition, 5S serves not only to increase efficiency in many companies, but also to improve occupational safety: tripping hazards, spilled liquids, and cluttered shelves are avoided as much as possible. This allows 5S to serve as the basis for further lean production methods.

Kaizen/CIP

Kaizen or CIP (continuous improvement process) stands for the constant, step-by-step optimization of processes. In practice, this means that not only management, but above all employees are actively involved. 

They know the daily processes best and can immediately identify potential for improvement. A classic example is the introduction of improvement cards or idea boards on which employees can contribute their suggestions. These are discussed in a team and, if jointly deemed useful, also implemented.

According to Kaizen or CIP, no drastic changes are forced, but rather many small steps are taken continuously, which can achieve significant effects when added together. This can shorten setup times, reduce transport routes, or improve ergonomics in the workplace.

The corporate culture that goes hand in hand with Kaizen/CIP is crucial: mistakes are not punished, but used as opportunities to learn and improve. Companies that consistently implement Kaizen/CIP promote open communication and strengthen employee motivation. In practice, success is demonstrated by increasingly smooth processes, reduced quality losses, and increased productivity - without major investments, but through continuous improvements in everyday work.

Kanban

Kanban is a method for controlling material and information flows and is based on the pull principle: an item or material is only produced, replenished, or refilled when there is a need for it. In practice, either classic Kanban cards or digital signals are often used for this purpose, which indicate a material requirement or trigger a reorder.

A typical example is the Kanban card on a box of components: as soon as the box is empty, the card is used to communicate the need for a replenishment. This prevents overproduction and keeps inventory levels clear. 

Today, Kanban is increasingly being implemented digitally, for example via software solutions that monitor inventory in real time. Kanban is also widely used in offices and IT departments – for example, as a task board with status columns such as “To-do,” “In Progress,” and “Done.” The big advantage is transparency: everyone involved can immediately see which tasks are pending or open and which of them may cause personnel and material bottlenecks.

In manufacturing, Kanban reduces waiting times and inventories, while in administration it ensures a clear structure for projects. Used correctly, Kanban increases both the efficiency and flexibility of a company, as only what is actually needed is produced or processed.

JIT

JIT (Just in Time) is a lean production method in which materials, components, or products are provided exactly when they are needed - not earlier and not later. In practice, this means that companies keep only minimal inventories and rely on a reliable and precisely timed supply chain.

A typical example is the automotive industry: individual parts such as seats or dashboards are not stored in stock but delivered in line with the production rhythm of the assembly line. This significantly reduces storage costs, but at the same time increases dependence on suppliers and logistics. Smooth processes, short transport routes, and good coordination between the parties involved are prerequisites for a functioning JIT system.

Modern IT systems also play a major role in the success of the JIT method, as they coordinate inventories, requirements, and deliveries in real time. In practice, companies benefit from lower capital commitments and greater flexibility, as there is no need to convert or write off large inventories. 

Nevertheless, JIT requires a very high level of process reliability - even minor disruptions can lead to production downtime in the worst case. When implemented correctly, however, it is an effective tool for establishing lean, cost-optimized production processes.

Poka Yoke

Poka Yoke serves to prevent errors (the Japanese term essentially means error-free working using simple aids). According to this principle, processes, devices, products, etc. are designed in such a way that errors cannot occur in the first place or, if they do occur, are immediately noticed by the user. A typical example from everyday life is the plug of a USB cable, which can only be plugged in one way.

In production, Poka Yoke elements are used in the form of sensors, gauges, and color markings, for example. This prevents components from being assembled incorrectly or work steps from being omitted. The advantage of this method is that quality is ensured directly within the process, rather than errors being detected later in time-consuming checks. Poka Yoke is particularly valuable in high-volume series production, where even small errors can cause high costs.

In practice, Poka Yoke leads to greater process reliability, lower rework rates, and higher customer satisfaction. The method relies on simple, often cost-effective solutions and is therefore a central tool for error-free and stable production in the spirit of lean management.

Value Stream Analysis

Value stream mapping is a method for visualizing and optimizing processes. It involves recording all steps in detail - from handling raw materials in production to completing the product - including material and information flows. On this basis, the teams involved graphically represent the current state (actual state); waiting times, inventories, transport routes, and other important information about the processes are made visible.

A typical example: In a production line, the time certain parts spend at stations, the proportion of value added, and where bottlenecks occur are recorded. This provides a clear picture of waste, but also of potential for improvement. A target state is then developed in which, for example, waste-free processes are defined. These processes are implemented step by step, often accompanied by Kaizen workshops.

The strength of value stream mapping lies in the fact that it makes complex processes clear and considers not only individual steps, but the entire process chain. Based on the findings of this analysis, companies can specifically shorten throughput times, reduce inventories, and make processes more transparent. For this reason, value stream analyses are used not only in production, but also in administrative processes such as order processing or product development - anywhere where processes need to be optimized.

SMED

SMED (Single Minute Exchange of Die) is a method for optimizing setup times. The aim of SMED is to enable machine changeovers in less than ten minutes. In practice, a distinction is first made between internal and external setup processes: internal steps can only be carried out when the machine is at a standstill, while external steps can be prepared in parallel during operation.

An example: Tools, materials, and aids are prepared before the end of production instead of being searched for during machine downtime. After that, manual operations can be simplified, for example, by using quick-release devices instead of screw connections. In many companies, aids such as checklists or standardized tool sets are also introduced for SMED.

The benefits are obvious: Shorter setup times increase machine availability and make smaller batch sizes economical. This enables companies to respond more flexibly to customer requests and reduce inventory levels. In practice, SMED is particularly important in industries with frequent product changes, such as packaging, plastics, or metal processing. SMED minimizes waste caused by long downtimes and significantly increases productivity.

Lean Production Software for Optimized Processes

The principles of lean production can be easily adhered to by using lean production software. Worker guidance systems provide support at shop floor level with comprehensive information in real time: outdated information that jeopardizes the flow principle and thus productivity is now a thing of the past. However, other efficiency and quality risks can also be avoided with a suitable manufacturing execution system (MES).

Clear Provision of Information

Paper-based orders, work instructions, and guidelines for assembly or quality testing, as well as various checklists, are being replaced by digital data that can be accessed centrally by all production managers. The information can be provided in multiple languages and through image and video material in the lean production software.

Transparent Processes

The MES ensures maximum transparency in all business processes, including through process-specific programs such as material management software. Valuable process data is collected at the production level and fed back via an interface to the enterprise resource planning (ERP) system and thus to the company management level.

Enhanced Resilience

This comprehensive database can then be used to derive numerous measures for the continuous improvement of production processes. This enables companies to respond more agilely to market conditions, crises, and customer requirements in the long term.

Lean Production Processes with MES Software

Production data acquisition (PDA) forms the basis for comprehensive production and process analyses. Quality data and running times, as well as failures and causes of malfunctions, are automatically recorded and clearly displayed in the PDA system. Production managers can access important information at any time via online access at the terminal, at the control station, or via a web application, enabling them to respond promptly.

Machine data acquisition (MDE) provides additional transparency in the production process. The MDE module not only ensures optimal control of individual processes, but also provides a sound database as a basis for sustainable production optimization. This paves the way for lean production.

Implementing Lean Production Methods Digitally

Lean production methods enable companies to make their production processes more efficient, flexible, and cost-effective. Principles such as value orientation, continuous improvement, and error prevention can reduce waste and increase quality. 

In practice, 5S, Kaizen, Kanban, and other methods can be used as ways to achieve these goals. Supported by modern software solutions, transparent, data-driven process control becomes possible. In this way, digitized lean production forms a sustainable basis for resilient companies that can hold their own in the competitive market.