How lean manufacturing is driving sustainability initiatives in 2022

Lean manufacturing, by design, limits waste – whether in time, cost or materials. The philosophy focuses on streamlining processes to make them as quick and efficient as possible. So, it naturally lends itself to sustainability. 

And the benefits are clear for manufacturers, with 40% of those investing in sustainable processes experiencing an increase in profits as a result. But how exactly is lean leading the way in sustainable manufacturing and how can businesses harness the power of data to benefit going forward?

Read more: The Guide to Implementing Lean Principles in Construction

Minimise materials 

The sustainability spotlight is firmly on the manufacturing industry – with pressure mounting to review processes for inefficiency and waste. This is where Lean manufacturing proves its worth. 

Using its principles, businesses can streamline processes to reduce material waste. The model is based on continuous improvement, with an emphasis on incremental changes based on regular reviews of the production cycle.

Inefficiencies at any stage of production are refined to leave only those that deliver benefits for the end-user.  

For example, inefficiencies on the production line can lead to product defects – from outdated technology in the design stage to poor communication between design staff and engineers. 

However, one of the key principles of Lean manufacturing – ‘poka-yoke’ – is the focus on foolproofing manufacturing processes. Each step should be designed so that it is almost impossible to carry out incorrectly.

By eliminating room for error, businesses can scale back the production of faulty products. The result is not only less material waste but a reduced need for resources from fixing or remaking unusable products.

Using data analytics technology, manufacturers can identify wasteful processes and take them back to the drawing board, using visual management techniques to make them foolproof.

Keep it light

It’s not just the production line that is to blame for energy inefficiencies in the warehouse, though. Traditional manufacturing models rely on large-scale production lines, which inevitably demand significant space to hold inventory until it progresses along the supply chain.

Not only is overproduction a driver of inefficiency and waste – increasing the number of raw materials used in production and those that end up scrapped or discarded – but its effect is also felt in energy output, storage and transport.

However, using Lean principles, manufacturers can not only reduce their output but also energy demands in the warehouse. For example, Toyota – the original proponent of Lean manufacturing – has reported a 78% reduction in harmful pollution from its manufacturing processes in the last five years, attributed to a ‘Just in Time’ (JIT) delivery model. 

JIT prioritises the production of items as and when the customer demands. The result is less stock held on shelves and reduced waste, as items are effectively ‘made to order’ – minimising the likelihood of excess inventory.

Those able to harness the power of smart technology and data analytics platforms can get a birds-eye view of the whole production process to identify under-performing or wasteful steps, which can be removed or tweaked to improve speed and efficiency.

Lean manufacturing also prioritises smaller production cycles, reducing both physical infrastructure and time spent on admin processes during each batch – facilitating reductions in energy expenditure and labour.

As a result, businesses could also save around 20% on the cost of inventory carrying.

Make fewer journeys

Another ‘waste’ identified in Lean manufacturing is transport waste – which represents a significant challenge in the manufacturing industry.

According to Lean manufacturing principles, any material movement that does not add direct value to the customer or business should be removed. This may include unnecessary journeys, inefficient supply chains and poorly designed routes – both in the warehouse and in transit from suppliers and to customers.

Manufacturers should regularly review transportation to deliver continuous improvements. This starts with the loading of items into vehicles, as well as recording the number of deliveries made, where they are made and how.

The aim is to eliminate wasteful and inefficient journeys. Multiple deliveries can be condensed to leave only those deliveries which are packed full. 

Businesses must also be able to harness the power of data to maximise sustainable transport. This may include warehouse optimisation to eliminate on-site traffic and make routes more efficient, as well as big data on transport fleets to make sure routes are fuel-efficient, timely and cost-effective.   

Similarly, predictive analytics tools give businesses additional insights, including live traffic information, to make each journey as efficient as possible. 

Boost the bottom line

Lean manufacturing also aims to reduce ‘skills waste’ – the wasting of human talent and potential. This encompasses all inefficiencies from lack of, or ineffective, employee training and development to complex tasks that add unnecessary time to their schedules.

By identifying and reducing these inefficiencies, businesses have the potential to maximise output and most importantly boost their bottom line. This may include listening to employee feedback and addressing inefficiencies, as well as regularly reviewing performance, in line with the continuous improvement model. 

For example, feedback may reveal complexities that could be improved, such as introducing manufacturing cells to improve speed in the production line. And it’s this financial impact that can have a positive knock-on effect on a business’ sustainability efforts. 

Not only do profitable businesses boast additional capital to invest in greener processes but they are often more energy efficient by design. For example, manufacturers that adopt a profit-per-hour approach are forced to consider cost drivers related to sustainability, too – like excess energy and waste disposal.

When these variables are reviewed using advanced analytics tools – often harnessing AI – insights go beyond those produced by traditional manual controls. As a result, manufacturers can make the continuous improvements needed to reduce waste and make better decisions going forward.   

‘Time’ is another key metric when measuring profit-per-hour. And when time is measured as a non-renewable resource, it places greater emphasis on the need to streamline manufacturing processes, naturally reducing waste and resources as a result.

Read more: 5 ways the construction sector can become more sustainable

Looking ahead

Ultimately, businesses adopting Lean manufacturing principles in 2022 will be best placed to reap the rewards.

These are reduced material wastage, cost reduction and increasing the bottom line, as well as driving forward sustainability initiatives, meeting goals and protecting business reputation among partners and customers.  

- The author, Damian White, is from lean consulting experts Clarity Visual Management.

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