What is 'lean manufacturing'?

Lean manufacturing is fundamentally a production practice that minimizes the generation of waste while maximizing productivity. This concept is rooted in the belief that reducing waste in all forms—whether that be time, materials, or labor—leads to more efficient operations. The aim is to streamline processes, enhance quality, and increase customer value without incurring additional costs.

The core principles of lean manufacturing revolve around identifying what adds value from a customer perspective and eliminating anything that does not contribute to that value. This ensures that every step in the production process is necessary and efficient. In this framework, "waste" is defined broadly, encompassing excess inventory, overproduction, defects, waiting time, unnecessary transport, and more.

In contrast, maximizing resource use, increasing labor efficiency, and outsourcing manufacturing processes do not capture the essence of lean manufacturing. While resource use and labor efficiency are components of overall productivity, lean's primary focus is distinctly on waste reduction in all areas of production. Outsourcing, while potentially effective in some contexts, does not inherently relate to the principles of lean.