Course Solutions Uncategorized (Answered) : How does lean production system increase profits?

(Answered) : How does lean production system increase profits?

How does lean production system increase profits?

Expert Answer


Lean manufacturing or production process was designed to reduce waste without affecting productivity. Because of waste management lean production system benefits the organization.

Here are some more ways through which lean production system benefits in terms of profitability.

As I have stated above that lean system reduces the waste. When water is reduced without affecting productivity. Reducing waste increase the productivity and profitability. The waste is converted into final products hence it affect the profitability.
Companies which use lean system often they use Six Sigma with it. As we know that Six Sigma

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