How to Use Lean Principles and Digital Tools in Manufacturing

Manufacturing has captivated me ever since my undergraduate days at the University of Michigan. It was there that I first encountered Value Stream Mapping (VSM), thanks to a retired General Motors executive who vividly illustrated its transformative potential. Around the same time, I dove into the world of Human-Machine Interfaces (HMI) through a fascinating project with Professor Green on the "Six Degrees of Kevin Bacon." Little did I know, these early lessons were part of two much larger frameworks—Lean and Digitalization—that would go on to shape my career and passion for driving manufacturing excellence.

Over the years, I’ve come to appreciate how these strategies, while distinct in their methods and objectives, are incredibly powerful when combined. Together, they create a synergy that accelerates operational improvements and enhances outcomes across the organization. For instance, as an operations manager at GKN Aerospace, I witnessed firsthand how integrating data capture into our processes helped transform a greenfield facility into a synchronized, high-performing team that outpaced the entire value stream.

Understanding Lean Transformation in Manufacturing

At its core, lean transformation is about eliminating waste and optimizing processes to maximize value for customers. Lean manufacturing principles, originating from the Toyota Production System (TPS), emphasize continuous improvement (kaizen), the reduction of inefficiencies, and the streamlining of workflows.

The main goals of lean transformation include:

• Reducing waste: Identifying and eliminating activities or resources that do not add value (e.g., overproduction, excess inventory, waiting times, unnecessary motion).
• Improving quality: Focusing on defect-free production processes and empowering employees to detect and resolve quality issues quickly.
• Enhancing flexibility: Creating a more agile manufacturing process that can quickly adapt to changing customer demands or market conditions.
• Shortening lead times: Streamlining processes to reduce cycle time and improve product delivery speed.

Lean techniques like 5S (Sort, Set in order, Shine, Standardize, Sustain), Just-In-Time (JIT), Kanban, and Value Stream Mapping (VSM) are some of the tools used to achieve these objectives.

Understanding Digital Transformation in Manufacturing

Digital transformation, on the other hand, involves integrating advanced technologies into all aspects of a business, fundamentally changing how the business operates and delivers value to customers. In manufacturing, this typically means implementing technologies such as:

• Internet of Things (IoT): Connecting machines, equipment, and systems to gather real-time data that can inform decision-making.
• Artificial Intelligence (AI) and Machine Learning (ML): Using data analytics to predict maintenance needs, optimize production schedules, and enhance product quality.
• Cloud computing: Enabling real-time data access across locations and teams, enhancing collaboration and decision-making.
• Automation and robotics: Improving production speed, consistency, and safety by automating repetitive tasks.

Digital transformation enables manufacturers to leverage real-time insights, optimize resource allocation, reduce downtime, and increase flexibility in responding to customer demands.

How Lean and Digital Transformation Complement Each Other

While lean transformation focuses on improving processes by eliminating waste and enhancing efficiency, digital transformation provides the tools and technologies needed to take these improvements to the next level. Here’s how these two strategies can complement each other in a manufacturing context:

1. Data-Driven Decision Making

Lean transformation thrives on making data-driven decisions, particularly through value stream mapping, process monitoring, and performance measurement. However, in the traditional lean model, data collection often relies on manual methods or siloed systems. Digital transformation provides the tools to gather, analyze, and act on data more effectively.

For example, implementing IoT sensors on manufacturing equipment allows companies to collect real-time data on machine performance, operational efficiency, and environmental conditions. These insights can be used to identify areas of inefficiency and waste in the production process, providing lean teams with accurate data for continuous improvement initiatives. This allows businesses to go beyond the traditional lean tools and adopt a more sophisticated approach to identifying process bottlenecks and addressing them proactively.

Data and analytics related to assembly processes are equally important to track productivity levels.

2. Improved Process Visibility

One of the main principles of lean transformation is ensuring transparency across the manufacturing process so that inefficiencies can be easily identified and eliminated. Digital transformation helps facilitate this transparency by providing real-time data visualization, which enhances the ability of teams to spot problems early.

For instance, integrating Manufacturing Execution Systems (MES) with shop floor systems and tools can display key performance indicators such as cycle times, downtime, and quality issues. This enables managers and team members to quickly assess whether a process is operating efficiently or if adjustments are necessary. Lean teams can then use this data to drive improvements in specific areas, such as reducing waiting times, eliminating bottlenecks, or decreasing poor-quality events.

3. Streamlining Production Processes with Digital Tools

Lean transformation often aims to reduce cycle times by eliminating wasteful steps in the production process. Digitized tools, a key component of digital transformation, can significantly accelerate this process by automating repetitive tasks and data collection that would otherwise require manual intervention. Incorporating digital torque drivers or measurement devices through an integrated software platform can vastly improve the operator experience by reducing the cognitive burden and equally minimizing the non-value-added time of recording or manually transferring data.  

4. Enhanced Collaboration Across the Factory…. and the Supply Chain

In a lean environment, collaboration is crucial to ensuring that materials and components are available when needed, minimizing inventory, and avoiding overproduction. Digital transformation, when done effectively, facilitates this collaboration by providing integrated systems that allow real-time information sharing across departments and suppliers.

For example, implementing a combination of on-prem and cloud-based platforms enables seamless communication and data sharing across the factory and supply chain. Manufacturers can use these platforms to track WIP, monitor order statuses, and communicate directly with suppliers (internally and externally) to ensure that the right materials arrive on time, and in the right condition. This level of visibility and collaboration supports lean principles such as Just-In-Time (JIT) inventory management, reducing waste associated with excess inventory, and improving overall supply chain efficiency.

5. Scalability and Flexibility

Lean transformation often focuses on streamlining operations to achieve maximum efficiency, but scaling lean practices to larger operations or adapting them to new product lines can sometimes be a challenge. Digital transformation, through technologies such as cloud computing, AI, and automation, offers the flexibility and scalability needed to rapidly adapt to changing market conditions or expanding production needs.

For instance, as a manufacturer grows, digital tools can help scale production while maintaining lean principles. Robust work instructions and robust data collection systems can enable algorithms and AI to help optimize production schedules, balancing the demands of different product lines with available resources. Automation systems can be reprogrammed to accommodate new products or configurations without significant downtime or retooling. This scalability ensures that lean improvements can be maintained as businesses grow, expanding their production capacity while maintaining the same focus on efficiency.

Looking forward

Implementing lean and digital transformation together can create a powerful synergy that will significantly enhance business performance. Lean provides the foundational principles of waste reduction, continuous improvement, and process optimization, while digital technologies provide the tools to gather data, automate tasks, and improve visibility.

By integrating these approaches, manufacturers can achieve greater efficiency, lower costs, improved quality, and faster responsiveness to customer needs—the ultimate goal. Start by learning about value stream mapping and see how it integrates with a digital twin. Apply Kaizen principles to refine your work instructions, then explore tools like Pico MES to connect systems for seamless two-way interaction with operators.

The journey may seem challenging at first, but if you haven’t embraced lean or digital transformation yet, now is the time to start both. Take the first step by signing up for Pico’s Essential Package to begin collecting actionable data and driving your operations forward.