in Corporate finance - 05 Dec, 2016
by OAuthor - no comments
What is lean production and what are its key points?

The term lean production refers to a philosophy that combines various techniques and tools that are going to be used in the business process in order to optimize productivity, time, human resources and improve the quality to minimize waste. It stems from the experience of the Japan company Toyota that has revolutionized the production process by increasing profits.


One of the most important tools of lean production is the method of 5 s, which indicates five terms in Japanese that are to indicate the 5 main stages of action in order to improve efficiency in productivity.
This method focuses on the organization, cleanliness, standardization and order.
Unfortunately, many companies underestimate the power of this method, as they believe these principles so obvious as not to be taken into account, snubbing in this way also the lean production system.

While this philosophy really allows you to increase productivity and to significantly improve both safety and the quality of work, thanks to several key points: to reduce maintenance, reduce set-up time, reduce the waste of time and material, improving the working environment, improve efficiency and ultimately improve employee morale. Obviously such a method can be carried in any industry, but is particularly suitable for the industrial one.
Now let’s see one by one what they mean the five terms of this method, we explainwhatislean production:

  • Seiri: thistermis to indicate the process of separating the necessary from the superfluous, eliminating all that is not directly required by the workplace
    • Seiton: hereyou indicate the ordering process material at defined positions to eliminate the waste of time due to look for them, making them easy to find for anyone working in the area
    • Seison: thatis, the cleanliness and order of the various areas of work in order to discover problems and solve them in the most effective manner
    • Seiketsu: thistermmeans standardization and improvement through repetition of the previous three phases
    • Shitsuke: the last term is to mean the maintenance and improvement of the results that have been achieved through the whole process.

The process requires patience and perseverance, the will to overcome difficulties implies determination to achieve the aim. For those who wish to pursue this issue so important, you can find by clicking on whatislean.org site that addresses the issue exhaustively.