Achieving Efficiency with Lean Manufacturing

In the ever-evolving landscape of advanced manufacturing, one methodology offers businesses a beacon of efficiency: Lean Manufacturing. As industries embrace the era of Industry 4.0, understanding and implementing Lean principles may provide a competitive advantage for businesses striving for excellence. 

“Lean is the prerequisite and foundation to achieving people, process and operations optimisation prior to automation or improvements of any kind,” shares Dr Woon Keng Soon, the deputy group manager and principal scientist of the Digital Manufacturing division at the Singapore Institute of Manufacturing Technology (SIMTech). 

SIMTech is a research institute of the Agency for Science, Technology and Research (A*STAR). It co-develops high-value manufacturing technology and human capital with industry partners to enhance the competitiveness of Singapore’s manufacturing sector. 

It is situated in Jurong Innovation District (JID), an advanced manufacturing hub that houses more than 100 players along the value chain, from advanced manufacturers to Industry 4.0 solution providers and training providers. The 600-hectare district aims to foster a collaborative ecosystem that will enable small and medium-sized enterprises (SMEs) to engage with industry partners like SIMTech to drive technology adoption. 

SIMTech is located at JTC CleanTech Two @ Jurong Innovation District. Photo: A*STAR

SIMTech currently offers several programmes, including those centred on Lean principles, to assist companies in kickstarting their digital transformation journeys. Dr Woon and his team of experienced researchers are tasked with developing and delivering these programmes so that companies can meet their objectives.  

What is Lean Manufacturing?
Lean Manufacturing is a systematic approach to streamlining processes and eliminating waste while maximising value for the customer. Said to originate from the automotive industry, Lean has since become a methodology applicable across various industries.
 
How Does Lean Manufacturing Benefit Manufacturers?
At its essence, Lean is about doing more with less. “Lean Manufacturing, rooted in improving efficiency and waste reduction, directly impacts the future of work through digitalisation and sustainability,” says Dr Woon. Its guiding principles aim to devise solutions that address these pain points:

- Overproduction: Excess inventory ties up valuable resources and leads to increased storage costs. Lean Manufacturing advocates for producing only what is needed, when it is needed, thereby minimising waste and reducing the risk of overproduction.
- Inventory Management: Bloated inventories not only strain cash flow but also obscure visibility into actual demand. Lean principles such as just-in-time (JIT) inventory management help businesses maintain optimal inventory levels and reducing carrying costs.
- Process Inefficiencies: Cumbersome processes, long lead times, and frequent delays hamper productivity and responsiveness. Lean methodologies focus on identifying and eliminating non-value-added activities, streamlining workflows, and reducing cycle times to enhance efficiency and agility.
- Quality Issues: Defects, rework, and quality issues not only incur additional costs but also tarnish a company's reputation. Lean Manufacturing places a strong emphasis on quality at the source, empowering employees to detect and address defects early in the production process, thereby improving overall product quality and customer satisfaction.
- Lack of Employee Engagement: Disengaged employees often result in lower productivity, higher turnover rates, and a stagnant culture. Lean principles promote employee involvement, empowerment, and ownership of processes, fostering a culture of continuous improvement and innovation.


The Smart Engineering System in SIMTech’s Model Factory has capabilities to handle high-mix-low-volume production with minimal waste and manual intervention, helping to facilitate high productivity and factory output.

Why Lean Manufacturing is Relevant During Industry 4.0
In the era of Industry 4.0, characterised by digitisation, automation, and interconnectedness, Lean Manufacturing assumes several significances for manufacturers. Here's why:

- Agility and Adaptability: Lean principles empower businesses to respond swiftly to market fluctuations, customer demands, and changing industry trends. By embracing flexibility and adaptability, organisations can thrive in dynamic environments characteristic of Industry 4.0.
- Optimising Digital Technologies: Lean Manufacturing complements digital technologies by providing a structured framework for leveraging automation, data analytics, and Internet of Things (IoT) to enhance operational efficiency and decision-making.
- Empowering Workforce Innovation: In the digital age, the human element remains indispensable. Lean fosters a culture of employee engagement, empowerment, and innovation, driving continuous improvement and problem-solving at all levels of the organisation.
- Sustainable Growth and Resilience: “In terms of sustainability, Lean’s foundational emphasis on optimising resources and reducing waste aligns seamlessly with eco-friendly practices of reduce, reuse and recycle,” adds Dr Woon. By eliminating waste and optimising processes, Lean Manufacturing promotes sustainable growth while enhancing resilience against economic uncertainties and disruptions in global supply chains.

Lean Manufacturing represents a paradigm shift in the way businesses approach production, drawing attention to efficiency, value creation, and continuous improvement. As Singapore continues to position itself as a hub for advanced manufacturing and innovation, embracing Lean principles may allow SMEs and MNCs to further their growth.

By leveraging the transformative power of Lean Manufacturing, businesses can unlock new levels of efficiency, agility, and competitiveness in the era of Industry 4.0. This also fosters a culture of continuous improvement and innovation towards a more human-centric, resilient and sustainable manufacturing in Industry 5.0.

WATCH: A*STAR SIMTech’s Dr Woon shares his insights on Lean Manufacturing