What's the main difference

between lean manufacturing

and conventional
manufacturing techniques?

Answer added by: Javier Lasuncion Director - Customer Service 2 years ago

In addition to the well-qualified answers of our previouos colleagues ("pull" efect instead of "push"), I would simply
add that LEAN Management is a PHILOSOPHY that focuses on removing waste from your processes: no mistakes,
no rejections, no unneeded stock, reducing transportation, and overtime, etc.
In short: you manufacture what your customer has ordered right at the first time, in less time, and with less cost.
Do no hesitate to contact me in case you need.
Yours, Javier

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Answer added by: Mohamed Mahmoud Quality Management Supervisor 2 years ago

I am occasionally asked, "What is the difference between traditional manufacturing versus lean manufacturing." The
overarching "big picture" difference between traditional manufacturing and lean manufacturing involves a totally

different mindset.
To be more specific I've put together a short list below, in no particular order, of what I see as some of the important
differences between lean and the traditional approach.
These are generalizations, but based on my experience I've found these generalizations to be true 100% of the time.
Traditional: Production driven by a sales forecast (Push).
Lean: Production is driven by customer demand; items are only produced when an order is placed (Pull - one of the 5
lean principles).
Traditional: Problems are viewed as just that, problems.
Lean: Problems are viewed as opportunities for improvement often through root cause analysis.
Traditional: Work in process (WIP) is viewed as a normal part of operations.
Lean: WIP is a sign that a process needs to improved and is considered a type of waste that should be reduced or
eliminated (the same is true for inventory).
Traditional: Improve system (disregarding all of the types of waste in the process).
Lean: Improve system by 1) Eliminating waste and 2) Improving current processes.
Traditional: Management is the primary driver of change.
Lean: Everyone is empowered, trained in the principles of lean and encouraged to look for ways to improve
processes.
Traditional: If a process is working (if it ain't broke) don't fix it.
Lean: Always look for ways to improve processes.
Traditional: Standardized work (people performing the same task the same way) only exists in documents like SOPs,
rarely in reality.
Lean: Everyone performs the same task the exact same way until a better way is discovered; then everyone performs
the task the new and improved way.
Traditional: Focuses on training and relies on people to not make mistakes.
Lean: Focuses on building processes that are error proofed (a person cannot make a mistake or it would be difficult
to do so).
Traditional: Systems thinking (views the organization as a whole), often ignoring or unable to see the enormous
opportunities for improvement.
Lean: Views the organization as a series of interrelated processes that can and should be improved.
Finally i hope i helped you by my answer.

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Answer added by: Karthigai Balan Subramanian Material Controller 2 years ago

Almost all the points has been discussed but i would like to add some more significant points to this Lean system
deals with7 types of wastages and the whole process is to get those wastages
reduced1.Defects2.overproduction3.Transportation4.Waiting5.Inventory6.Motion7.Processing

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Answer added by: Mohamed Saleh Moghaieb Quality assurance engineer 2 years ago

conventional manufacturing could be considered as the opposite of lean manufacturing, as when lean is concerned
about minimizing the wastes, conventional manufacturing is concerned about the quantity.
when lean is concerned about just on time production, conventional is about keep producing as long as the plant can
produce and hire more storehouses.
problems should only be overcame and corrected, if only conv..
manufacturing is considered, while if Lean is considered then you are looking for predictive and preventive actions.
even about the least added item to the Lean list of wastes, workers are the bridge to highest efficient, highest quality
standard, min cycle time through continual improving training training .

while the through conventional manufacturing understanding they are almost a set of fixed tools, and they should be
mastering only their only limited task.

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Answer added by: Ramzi Matar Production Operations Controller 2 years ago

Pull instead of Push, is one major difference between Lean Manufacturing and Conventional Manufacturing
Techniques.

Lean Manufacturing
What is Lean Manufacturing? While there are various definitions, most very similar, I
use the following definition when training on lean manufacturing:
Lean Manufacturing is an enterprise-wide strategy for achieving excellence:
- by creating value (from the customer's perspective)
- by creating a culture of continuous performance improvement and working to
eliminate ALL waste of resources and time
- by creating high quality, stable processes and emphasizing respect for people
throughout the organization.
Lean is a continuous process improvement methodology consisting of five
primary principles:
1. Value (from the customer's perspective)
2. Value Stream (map the steps in the value stream)
3. Flow (create a smooth flow)
4. Pull (the right amount pulled at the right time, no more, no less)
5. Perfection (elimination of all waste in the value stream)
Learn more about the five principles of lean manufacturing from my short instructional
video.

Video: The Five Principles of Lean

Lean Manufacturing or Lean Methodologies?
Lean as we know it today was developed from the auto giant Toyota; more specifically,
the Toyota Production System (TPS). Lean is now being successfully applied in all
types of service related industries, saving companies hundreds of thousands to
millions of dollars each year.
Therefore, in today's environment, I believe the term Lean Manufacturing would be
more appropriately referred to as Lean Philosophies or Lean Methodologies.
Difference Between Traditional and Lean Manufacturing
I am occasionally asked, "What is the difference between traditional manufacturing
versus lean manufacturing." The overarching "big picture" difference between
traditional manufacturing and lean manufacturing involves a totally different mindset.
To be more specific I've put together a short list below, in no particular order, of what I
see as some of the important differences between lean and the traditional approach.
These are generalizations, but based on my experience I've found these
generalizations to be true 100% of the time.
Traditional: Production driven by a sales forecast (Push).
Lean: Production is driven by customer demand; items are only produced when an
order is placed (Pull - one of the 5 lean principles).
Traditional: Problems are viewed as just that, problems.
Lean: Problems are viewed as opportunities for improvement often through root cause
analysis.
Traditional: Work in process (WIP) is viewed as a normal part of operations.
Lean: WIP is a sign that a process needs to improved and is considered a type of
waste that should be reduced or eliminated (the same is true for inventory).
Traditional: Improve system (disregarding all of the types of waste in the process).
Lean: Improve system by 1) Eliminating waste and 2) Improving current processes.
Traditional: Management is the primary driver of change.
Lean: Everyone is empowered, trained in the principles of lean and encouraged to
look for ways to improve processes.
Traditional: If a process is working (if it ain't broke) don't fix it.
Lean: Always look for ways to improve processes.
Traditional: Standardized work (people performing the same task the same way) only

exists in documents like SOPs, rarely in reality.

Lean: Everyone performs the same task the exact same way until a better way is
discovered; then everyone performs the task the new and improved way.
Traditional: Focuses on training and relies on people to not make mistakes.
Lean: Focuses on building processes that are error proofed (a person cannot make a
mistake or it would be difficult to do so).
Traditional: Systems thinking (views the organization as a whole), often ignoring or
unable to see the enormous opportunities for improvement.
Lean: Views the organization as a series of interrelated processes that can and
should be improved.
Final Thought: Everything Functions Through Processes (A Part of Lean
Thinking)
As lean professionals we see the world as a series of processes. Anytime you have
something with a defined beginning and ending, you have a process that could and
should be improved. This is one of the primary reasons Lean has been successfully
applied in so many different types of industries; every industry has processes.
For a non-manufacturing example let's consider routine doctor's appointments. The
process could START when the computer indicates a patient is scheduled for a routine
appointment. It could END when that particular patient completed the routine
appointment.
In this example we would analyze all of the steps from start to end with a team of local
experts. What we'd undoubtedly find is a series of wasted steps, wasted time,
reworks, non-standardized work, poor process flow, etc.
Another example could be an auto service center. The START could be when a
customer signs in at the counter, and END when the customer's car has been fixed
and paid for. Again, like the previous example, if we analyzed this process we'd
undoubtedly find many areas for improvement. These improvements equates to
increased efficiencies that have a direct impact on the bottom-line.

Accounting Differences With Lean vs. Traditional

Manufacturing
by Tyler Lacoma, Demand Media

Traditional manufacturing refers to manufacturing principles focused on producing a certain

set number of products each period and holding a reserve in case of unexpected demand or
shortages. This strategy still works well for many types of manufacturing, but in some
industries, it is being replaced by lean manufacturing, which seeks to save money by
matching production flow with changing demand and focusing on efficiency instead of
reserves. Accounting approaches change along with business strategy.
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Traditional Manufacturing
In traditional manufacturing, costing is a vital process for charting production expenses;
costing is the act of assigning costs to particular production activities and steps. The goal is
to assign costs to the parts of production that actually produce related value, known as the
matching principle. In this situation, costs are typically categorized by department or stage,
with one cost being assigned for all resources, all labor and so forth.

Lean Manufacturing
In lean manufacturing, the traditional methods of costing create problems. Lean
manufacturing tends to use techniques like work cells in order to easily adapt to new
product needs and rapidly shifting production amounts. With a variety of different work cells,
each often requiring its own types of labor, resources and machines, broad costing
procedures do not work as well to represent production expenses. Accountants need to find
more accurate ways of representing costs.
Related Reading: Lean Manufacturing Planning Methods

Solutions: Value Streams and Other Costing Practices

The solutions to lean manufacturing accounting vary. Value streams are a common
approach; in these, the company sees the production process as a system of creating and
adding value step by step and assigns costs based primarily on this value instead of
categories like labor and raw materials. This allows costs to be split up more accurately and
lets the business find new ways to save money and represent production costs visually for
strategic decision-making.

Lean Accounting
Lean accounting is a term often associated with lean manufacturing. The two are not
necessarily connected. Lean accounting refers to practical, simplified accounting practices
designed to provide business leaders with easily understood facts and figures. Not all lean
manufacturing accounting is actually lean accounting. In fact, in lean manufacturing
accountants will often use additional documents that explain how costs are broken down,
expanding on financial statements rather than simplifying them.

The Difference Between Lean and Flexible

Manufacturing
by Erin Schreiner, Demand Media

Not all factories operate in the same manner.

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Lean manufacturing is all about making as much money as possible and streamlining the
manufacturing process. In many cases, this means limiting customer options. Conversely,
flexible manufacturing is all about meeting customer needs, regardless of how much more
doing so may cost. In many businesses, the manufacturing process is a blend of these two
forms, as combining them allows companies to reap the benefits of both.
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Difference
In flexible manufacturing, customers are given numerous options when selecting their
goods, allowing them to create customized versions of products to meet their specifications.
By allowing customers to custom-order their goods, companies create a situation in which
they must be responsive to these needs. In lean manufacturing, on the other hand,
companies offer one or two versions of a product but largely do not allow for customization.
When companies do not allow for special orders as readily, they can keep fewer goods, and
often less specialized staff, on hand.

Cost Issues
Giving customers options costs money. To allow customers to customize their ordered goods,
companies must purchase a larger variety of components and pay staff to customize these
items. It is for this reason that customized goods are often more expensive than noncustomized ones. While raising the price is one way to recoup the extra costs associated
with flexible manufacturing, this method alone often is not sufficient to make up the cost
difference.
Related Reading: The Business Impact of Lean Manufacturing

Customer Satisfaction
Both manufacturing methods can lead to customer satisfaction. Because goods often cost
less when companies employ lean manufacturing methods, customers will likely be more
pleased with the prices they are asked to pay for these items. Conversely, if customers seek
highly specialized products, they will likely be more satisfied with the results of flexible
manufacturing, as this type of manufacturing allows for greater customization.

Making the Choice

When companies seek to select the manufacturing methods appropriate for them, they must
allow customer needs to guide their choices. Companies that offer high-end goods are often
better served by employing flexible manufacturing methods, as buyers of these goods are
often willing to pay more for this customization. Alternately, companies that specialize in
affordable products may be best served by lean manufacturing, as this type of
manufacturing allows them to keep their costs down.

Difference Between Traditional Vs Lean Manufacturing Concepts

When we think about lean manufacturing we think about work cells, kanban cards, TQM and
etc. But many people do a basic mistake. That is the mistake of not understanding the concepts
on which lean manufacturing built on. Many people who copied lean manufacturing failed
because they did not understood the concepts behind lean manufacturing.
We shall give a simple definition to lean manufacturing before we go further. Lean
manufacturing can be defined as a systematic approach to continuously identify and remove the
wastes from the system. All the tools and techniques are based on fulfillment of this simple
requirement.
To identify the conceptual difference between lean manufacturing and conventional
manufacturing, we will have a look at the definition given above. There is a very important word
to note. That is "Removing". Removing of waste from the system might not sound very different
to minimization of wastes in the system, what we talk in conventional manufacturing. But think
carefully. These two words are very different in the context of manufacturing (or even services).
When you think about minimizing of waste, you are thinking about the current system where you
have wastes. You think about minimizing those wastes by fine tuning the system. When you
think about eliminating or removing wastes from the system, you will have to find the causes for
the wastes and remove them from the system. This means that you will have to redefine the
process in a way that there are no wastes generated. So in the first case you live in the system
where there are wastes, and struggle to get some improvement. In the later, you change the
system so that system itself will not have the wastes. Aren't they really different?
I will give you one more example to clarify the conceptual difference between lean
manufacturing and traditional manufacturing. Think about Work In Progress (WIP). In a
traditional manufacturing process WIP is treated as an asset which helps to run the process
smoothly. Lean manufacturing though, treats WIP as a waste itself. Further, lean manufacturing
treats WIP as a mirror which reflects the imperfection of the system.

I can go on and on explaining conceptual differences these systems have. But it is very
important to understand one thing about lean manufacturing. Lean manufacturing is not a fine
tuning to the traditional manufacturing system you had. It is a completely different system. To be
able to implement lean manufacturing correctly, understand the conceptual differences between
lean manufacturing and traditional manufacturing.

Top 10: Lean manufacturing companies

in the world
Sheree Hanna - Top 10 - Jun 12, 2014

10. Nike
The super-cool clothing company worked with NGOs and fellow manufacturers
on sustainability projects. They worked with the Fair Labor Association to
create performance indicators and sustainable sourcing and launched the
Sustainable Apparel Coalition with the US Environmental Protection Agency
and other manufacturers, and in the process saved money on energy and
waste materials.
9. Kimberley-Clark Corporation
The Makers of Kleenex recently outsourced logistics at its Barton Mill UK plant
to leading Lean thinkers, Unipart. Before this, staff at the plant resented the
long shifts and overtime and absenteeism was at 10 percent. Unipart got
Kimberley-Clark to spend on enhanced staff engagement and development,
meaning they saved on staff absenteeism and through an improvement in
efficiency brought about by better staff morale.
8. Caterpillar Inc.
The US machinery manufacturers Caterpillar Production System is modelled
after elements of the Toyota Production System. A key thing the company
recognised is that pace is a critical aspect of Lean integration, if projects take
too long to complete, they will fail. Projects must be quickly implemented, and
far reaching, to be successful.

7. Intel
Intel is the worlds largest computer chip maker. Joe Foley, factory manager at
Intel Fab Operations in Leixlip, Ireland, said: Five years ago, it took us 14
weeks to introduce a new chip to our factory; now it takes 10 days. We were
the first Intel factory to achieve these times using Lean principles.
6. Illinois Tool Works
Engineering manufacturer Illinois Works employs 65,000 people in its
hundreds of businesses, but smaller is better when it some to implementing
Lean principle. The companys policy of extreme decentralisation, splitting into
365 units in 34 countries leaving just 100 employees at headquarters,
means its local units react far faster and more efficiently to customer needs.
5. Textron
The American industrial conglomerate that includes Bell Helicopter, Cessna
Aircraftand Textron Systems have their own Textron's Lean Six Sigma
Standards, a comprehensive, common set of tools and techniques applied to
all functional areas to eliminate waste, reduce variation, and fuel growth and
innovation.
4. Parker Hannifin
One of the largest companies in the world in motion control technologies,
Ohio-based Parker Hannifin employs 58,000 people globally. Since 2000, the
company has implemented best practice programmes in productivity, quality,
throughput, customer service and cost reduction. Bosses found that Ebusiness strategies dramatically reduced human intervention while speeding
up the supply chain process.

3. John Deere
The worlds largest manufacturer of agricultural machinery in 2003 spent $100
million on transforming its Iowa, US, operation from mass production to lean
manufacturing. Project Manager Kallin Kurtz said: This project transformed
our manufacturing engineering mindset. We have put a great deal of effort into
identifying non-value-added activities and eliminating them where possible.
2. Ford
Founder Henry Ford challenged ideas on waste in the 1910s. In his book My
Life and Work, he wrote of a farmer carrying water up a ladder rather than
fitting water pipes as waste motion, and showed that spending on
improvements was not waste expense, but an increase in efficiency and a
reduction in waste.
1. Toyota
The Toyota philosophy and it truly is a philosophy has helped make Toyota
the world top three car company it is today, and has resulted in the Lean
concept, replicated worldwide.
Lean manufacturing is a management philosophy derived mostly from
the Toyota Production System (TPS), an integrated socio-technical
system which comprises its management philosophy and practices.
A socio-technical system is an approach to complex organisational design that
recognises the interaction between people and technology in workplaces.
Sometimes referred to as the Toyota Way, the TPS main objectives are to
design out overburden and inconsistency and to eliminate waste. Waste not
only refers to materials, but time, such as consumer time waiting for product or

assistance and even waste of movement. The philosophy also relies on the
process being as flexible as possible to reduce stress, which counts as
overburden and generates waste.