Role of lean practices

Lean thinking is associated with a number of operational practices that help to deliver the aim of waste minimisation. Two of the most significant are  

These two practices are closely associated with each other, but are considered separately here to aid clarity. 

Shingo, 1988). The ability to undertake rapid changeovers allows a batch of each different body panel to be produced each day in line with current demand instead of having to produce to forecast. 

The lesson from the automotive industry is that even very large pieces of equipment can be developed to allow rapid changeovers. This effort may take a number of years, and is reliant upon developments in machinery and product design, but it can be done. The effect is to provide the flexibility to make possible small-batch production that responds to customer needs. 

Small-batch production associated with rapid changeover allows productivity to be maintained by taking advantages of economies of scope. Instead of economies of scale, where quantities of the same thing are made, economies of scope lower costs when quantities of similar things that use the same production resources are made. 

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