Effect of Lean Principles on Organizational Efficiency

In India, the manufacturing sector is striving hard to generate revenues and this is ongoing for the last one decade. This aspect of generating funds is dependent on two major factors i.e. reduction in product manufacturing cost, and enhancing the product quality to satisfy the customer needs. The production cost can be reduced by improving the design and through incorporating the newest version of materials. The improved version of materials will positively add value to the product quality and thereby attract the customers. On the other hand, the product quality can increased through application of systematic and statistical data analysis tool especially Lean, Six Sigma, SCM, JIT, TPM etc. in the manufacturing sector. This may further results in high labour efficiency. The paper comprises of literature review of published paper in various reputed journals on the concept of Lean manufacturing. "Lean" is a production process which encompasses the expenditure of all the resources to accomplish a goal and creating of value to end customer through eliminate the wastes. The paper reveals that the goal of Lean is creation and maintenance of a production system, which runs repetitively, day after day, week after week in a manner identical to the precious time period. The continuous and smooth flow, earlier delivery, reduced cost and better design are the outcomes of the systems.