Lean Manufacturing

Though the terms "Lean Manufacturing" and "Low Cost Manufacturing" are often used, interchangeably, the two terms actually represent the method and techniques of the manufacturing industry.
While lean manufacturing focuses on the efficiency of resources (materials, methods, human capital), low cost manufacturing is the function of outsourcing and optimization of all manufacturing expenses and costs, particularly on a large scale. Both methods and terms seek to eliminate waste and improve productivity. 

Optimizing Manufacturing Costs

While historically, manufacturers have struggled to combat challenges such as high costs, fluctuating demands, and scarcity of raw materials, the rise of an interconnected and global economy have provided a rise in technology to combat these traditional obstacles. For example, the increased demand for high quality products has expanded the search for manufacturing services and production around the globe. No longer a forte of local producers, today's manufacturing solutions must be met with optimized manufacturing overseas and outsourcing. This is where lean manufacturing becomes a relevant solution to contemporary manufacturing practices. 

One of the main principles of lean manufacturing is the elimination of waste and optimization of the manufacturing processes. Where in the past, the idea of "waste" was mostly restricted to raw materials, the definition has expanded to include any type of resource that does not improve profitability nor benefit the consumer. 

Lowering Manufacturing Costs 

Though cost reduction is a primary concern for many company executives, it takes more than streamlining supply chains and optimizing production. Such methods combined with a robust and efficient low cost manufacturing plan can help eliminate wasteful processes and gives companies the flexibility to utilize their resources more efficiently and effectively. It is imperative that companies that are considering outsourcing their manufacturing understand the lean and low cost manufacturing principals and partner with an experienced, proven provider that can help them profit and grow through overseas manufacturing processes.