Lean manufacturing is a production method that aims to reduce times within the production system as well as response times from suppliers and to customers. It is based on the principle of maximizing productivity while minimizing waste within a manufacturing operation. Waste is seen as anything that customers do not believe adds value and are not willing to pay for. Lean manufacturing is closely related to another concept called just-in-time manufacturing (JIT manufacturing in short) . The benefits of lean manufacturing include reduced lead times, reduced operating costs, and improved product quality.

Lean manufacturing is based on a number of specific principles, such as Kaizen, or continuous improvement. The methodology is based on a specific manufacturing principle that has influenced production systems across the world as well as those of other industries including healthcare, software, and various service industries. Lean manufacturing is particularly related to the operational model implemented in the post-war 1950s and 1960s by the Japanese automobile company Toyota called Toyota Production System (TPS), known in the USA as "The Toyota Way".

The five principles of lean manufacturing are:

1. Value: Define value from the customers perspective.
2. Value Stream: Identify the value stream and eliminate waste.
3. Flow: Ensure that the value flows smoothly through the value stream.
4. Pull: Use a pull system to produce only what the customer wants when they want it.
5. Perfection: Continuously improve the process to achieve perfection.

Lean manufacturing can be applied to any industry, not just manufacturing. Companies that use enterprise resource planning (ERP) can also benefit from using a lean production system.