Lean Manufacturing (Lean Manufacturing) techniques are used to increase the profit margin by reducing costs. While customers set the value of the product, the costs define the company, so they are not at stake.
Traditional view: Costs + Margin = Sale Price.
In the previous example, the cost of carrying the product to the market plus the profit margin, the sale price of a product. Particularly in our global economy this model rarely reflects the practices that are used. Competition and customer demand set the sale price. A company with a Lean approach whenever it controls its costs through the elimination of activities that do not add value to the product or service.
View Lean: Sale Price – Costs = Margin
When a Lean program is implemented and followed, one should look directly at the waste management cost savings. Significant improvements will also be seen in other areas:
- Employee Morale
- Customer satisfaction for the reduction of defects and improvement of delivery time
- Fastest time in the market
Lean manufacturing is focused on the customer. Since the success of any business as a whole is due to the satisfaction of customer demands, Lean Manufacturing allows manufacturing activities to be more closely aligned with the company’s objectives that, at the end of the day, are the client’s objectives .