3 Reasons Why Going Lean Can Increase Your Bottom Line

It’s surprising to see how many businesses still rely on outdated practices and processes because they assume they work. The old adage, “if it’s not broken, don’t fix it” only applies if you know whether your processes are broken or not. If you aren’t applying the principles of lean management in your facility, then we can guarantee you that it’s not functioning to its full capacity. The efficiency of lean manufacturing doesn’t have to be proven, and if you think it’s just another fad, think again. Here are some of the ways going lean will increase your bottom line.

Higher Throughput

The most direct way that your business will benefit from implementing lean principles will be through an instant increase in production. Doing something as simple as running a 5S analysis on your company will be enough to instantly improve your processes and make them both more efficient and safer.

5S is a methodology that originated in Japan and focuses on continuous improvement. The 5S’s stand for sort, set-in-order, shine, standardize, and sustain. 

Sort and set-in-order are all about removing unnecessary elements from a workspace. Shine is about keeping that space as clean as possible to reduce the chances of accidents and identify anomalies faster. Standardization is about having clear processes and schedules for maintenance and sustain is about monitoring these processes for performance.

If this seems a bit complex for you and you don’t know how to implement these principles in your organization, know that you can always hire outside help. Consultants like Supply Velocity will help implement 5S in the workplace through company-wide hands-on experiential training. They’ll walk you through the whole process and help you monitor progress as you go.

Less Need for Storage

Manufacturing facilities that don’t apply lean principles are not as efficient at managing inventory. Inventory that is not used will have to be reused or wasted. But before it is repurposed or thrown away, this inventory will take space that could be used more wisely. 

You could be using that space to create more efficient and safer floor plans, add more equipment, or even fit more employees. So, don’t assume that having space taken up by inventory is a normal part of business and try running a leaner operation to maximize it.

Use Your Labor Force Better

Another thing you’ll be able to do by making the switch to lean is maximize your labor force and lower your labor costs. Going lean will reduce your reliance on human labor and maximize automation. There’s a strong chance that you’ll notice that some steps are unnecessary and use too many employees after reviewing your processes. 

In addition, you’ll be able to adjust to peaks in production much more easily. With lean manufacturing, you can easily assign employees to different tasks whenever needed. You’ll even be able to pinpoint when you may have to relocate them and better evaluate how many employees you need on your payroll at any given time.

These are all ways that switching to lean manufacturing will increase your business’s profitability. So, if you haven’t considered the option yet, you should consider speaking with an expert today and learn more about the benefits of lean today.