Mass production (MP) will produce small amount giantic batches of the product when lean production (LP) would produce large number of baches with small amount of product. Usually in case of lean production the production is to fulfill demands of the order i.e. buying high-end car you select everything and then make order for factory to produce exactly this item (batch with one product). In mass production manufacturing cycle and selling cycle are separated i.e. CPU producers producting millions of units in one batch to keep them on the shelfs and be sold later on. It is suitable to say that LP is pulled by customer when MP is pushed by the producer. LP is more like in-house manufacturing with use of flexible tools and workspace when MP is with use of heavy and difficult to set-up machinery. LP is much newer concept of production than MP.
The Manufacturing and Supply Chain Management Team plays a very important role in built up of huge inventories at all stages. In order to control inventories at all stages; Lean Manufacturing concept can be implemented right from input procurement to finished goods. Reduce the batch size and increase the frequencies. This will help to reduce inventories at all stages; effective utilization of space, no excess or obsolete inventories, no risk of shelf life expiry due to downward trend in the market etc.
FIGURE 1.1 of the following book chapter discusses "Major Historical Highlights of Manufacturing Events" including what are the differences among, craft, mass, agile, and lean manufacturing.
Dear Dr. Mahmoud Shafik , interesting question. There are generally two principles of production for most manufacturing companies. If you are a manager of such a manufacturing business, your biggest concern is how to address the problem of waste during production. If not solved, the challenge leads to the delay of projects and unnecessary spending.
In the end, the finished product becomes too costly for consumers to afford. Therefore, what approach should you use in manufacturing?
The two approaches to manufacturing management
It is easy to be confused because both lean manufacturing and mass production seek to minimise waste. Here, waste refers to unnecessary time wastage, processing, leftovers and inventory. Generally, waste in manufacturing is any process, operation or item that does not add value to the finished product, or reduce its quality. Therefore, minimising or eliminating waste enables you to arrive at high-quality products in a shorter duration.
The phenomenon of lean manufacturing is common nowadays in the manufacturing industry. It involves the use of appropriate Enterprise Resource Planning (ERP) software and tools with the aim of working smart, as opposed to working hard. It is geared towards manufacturing only the necessary products to avoid losses or unnecessary storage expenditures.
On the other hand, mass production is the manufacture of more products than the actual demand. The reasoning behind this approach is that more goods are made within less time and using fewer resources. In the end, you will have to store the surplus goods in warehouses, awaiting customers’ orders.
Advantages of lean manufacturing over mass production
As lean manufacturing systems produce little goods that you are sure will sell off, you will be left with unmoving products in your warehouse should they lack market or become obsolete. In that case, you will be forced to sell products at a loss. Therefore, you should invest in perceptive lean Enterprise Resource Planning solutions such as the WinMan ERP software for lean manufacturing.
Another advantage of the software is that your company will not only manage the internal manufacturing process, but also the external environment that controls the supply of raw materials. In the end, you will effectively control inventories to suit the requirements of customer orders. This way, you will never produce more goods than necessary.