Why advanced manufacturing needs lean production now more than ever

To stay competitive, organizations must integrate lean methodologies with advanced manufacturing technologies for efficiency and agility.

As companies recover from the SKU rationalization efforts prompted by the COVID-19 pandemic — when manufacturers prioritized product availability — they now face the pressing challenge of reintroducing the variety of goods and services that consumers increasingly expect. With a growing demand for diverse options in flavors, improved features and sizes (especially for price-conscious consumers), lean methodologies provide a robust and adaptable framework to navigate these shifting market dynamics.

How does this work in practice? Lean manufacturing practices enable quicker setups and changeovers; smaller batches can be produced without compromising efficiency or quality — crucial for today’s increasingly segmented supply chains. The integration of AI and advanced manufacturing techniques further enhances this capability, empowering companies to track trends, innovate, and deliver the products and services that consumers desire the most.

Lean manufacturing as an enabler for change management

Digital transformation can enhance competitiveness through robust data foundations, predictive maintenance strategies and continuous cost monitoring — but the potential of new technologies often remains untapped due to organizational barriers. Questions arise: Who takes ownership of these tools? Who drives their adoption? Who will lead the way out of “pilot purgatory,” where initiatives linger in trial phases without full implementation? Often, these tools are designed in a way that makes them more intriguing for executives than useful for those workers on the shop floor, because they require new skills to be leveraged effectively.

Many organizations lack a clear orchestrator (e.g., chief transformation officer or cross-functional leadership team) for the comprehensive transformation requirements across people, process and technology. As a result, technology may be deployed but not fully utilized, preventing integration and scaling — sometimes because it wasn’t suited for the intended purpose. The true value of digital transformation lies in empowering those closest to the challenges to identify issues quickly, make informed decisions, and ultimately deliver greater business value.

Lean manufacturing methodologies offer a comprehensive framework for integrating digital tools and enhancing operational practices. Approaches like Procter & Gamble’s Integrated Work Systems (IWS) foster a culture of ownership among all employees, encouraging everyone to identify and resolve inefficiencies in processes. In this way, technology is not only adopted but also continuously refined and scaled.

Enhancing lean with digital twin technology

For years, manufacturing executives have been intrigued by the concept of digital twins — virtual replicas of products, processes or entire operations that serve as laboratories for simulations. While the potential applications, such as monitoring asset health or quality of final products, are vast, they often become obscured by complexity and the need for extensive data to be truly effective.

With organizations increasingly focused on data, digital twins are poised to realize their full potential: consolidating information from diverse sources into a unified view that highlights areas needing attention, such as bottlenecks, potential waste or asset health concerns. These integrated platforms enhance visibility and collaboration across teams, effectively breaking down silos.

Real-time data analysis significantly influences decision-making and resource allocation, enabling organizations to respond swiftly to changes. Digital twins empower leaders to quickly decide how to allocate constrained resources, such as personnel, and leverage lean manufacturing frameworks to eliminate waste. Additionally, predictive analytics and Internet of Things (IoT)-enabled devices facilitate scenario simulations, allowing for the exploration of various equipment changeovers, work schedules and responses to equipment failures.