Lean Software Development: Smart Solution for Manufacturing Industry

By Shravan Rajpurohit
June 11, 2025

As of 2025, US-based manufacturers are struggling with maintaining profitability due to rising costs and shrinking workforces. Meeting customer needs and expectation has become more challenging as well. To tackle these issues and maintain competitiveness in the market, manufacturers are investing in all-encompassing digital transformations. A core part of the digital transformation is custom-built software solutions directed toward the manufacturing sector. However, the traditional custom software development process is often mired by inefficiencies that lead to higher than necessary costs and take too much time.
Here is where the concept of lean development software for manufacturing comes into play.
This model is derived from Toyota’s lean development models of software which focuses on solving real-life problems through custom software solutions in the most efficient and rapid means possible. The added features and delays are kept to a minimum. This approach stems from lean software development, which was inspired by the Toyota lean manufacturing system.
This blog will discuss the meaning and significance of lean software development in the context of the manufacturing industry, its differences with agile development, its principles and methodologies, and how companies are using it to gain an edge over their competition.
What Is Lean Software Development?
Lean software development is a framework that puts emphasis on delivering maximum value through the creation of software with the least amount of expenditure while sticking to timelines. It concentrates on fast delivery with continuous enhancement.
This model was inspired from the one used in lean manufacturing which focused on increasing output as much as possible from a given input. Translated to the software sector, this means delivering customer value fast, limited rework, and the elimination of unnecessary features.
This is the outline of lean software development in practice:
- Features get developed and released in small increments.
- Teams are able to gather user feedback quickly.
- Decisions are made based on actual evidence as opposed to hypothesis.
- Software development incorporates quality assurance from the earliest stages.
Rather than aiming to create a “perfect” system all at once, lean teams prioritize a swift release of a functional version which can later be iteratively improved. This approach enhances risk management, cost control, and user satisfaction.
Lean Manufacturing Software Development
Lean software development is the application of lean principles to software systems in a manufacturing context.
These systems comprise:
- ERP systems (Enterprise Resource Planning Systems)
- Manufacturing Execution Systems (MES)
- Software systems for quality control
- Inventory management systems
- Production planning tools
- Supply chain optimization platforms
When these tools are developed with a lean software methodology, they are more attuned to the realities of the shop floor. Rather than creating over-engineered systems, developers collaborate with factory users to prioritize actual needs.
For instance, a lean software team might first develop a simple raw material tracking tool. The plant users’ feedback during usage dictates whether enhanced features should be added.
The outcome now is Software that:
- Performs more effectively in the field
- Is less expensive to support and maintain
- Is more user-friendly for employees
- Facilitates ongoing optimization in the production area
Lean Vs Agile Software Development
While many people think of “lean” and “agile” as one term, they are quite distinct concepts. Let us consider them side by side:
Aspect | Lean Software Development | Agile Software Development |
---|---|---|
Goal | Produce a value-focused system by eliminating wastes. | Aim to respond to change promptly. |
Focus | Holistic system optimization and throughput work. | Perceptions of elasticity, client engagement, incremental versions of deliverables. |
Strategy | Minimize feature set, waiting, and rework. | Always hold sprints, stand-ups, and retrospectives. |
Key Tool(s) | Value stream mapping. | Scrum, Kanban, and user stories. |
Although lean versus agile software development may sound like a competitive clash, it certainly isn’t. A lot of teams combine the two. Lean assists in economizing the overhead cost and agile ensures the process is broken down into short bursts of well-defined work.
Used together, these strategies enable the design of responsive, adaptable, and powerful manufacturing software designed to accelerate processes.
Principles of Lean Software Development
Let’s cover the seven principles of lean software development. I will explain each of them in detail using simple language:
1. Eliminate Waste
In software, waste can be described as:
- Unused functionalities and features.
- Bugs that slow down work.
- Waiting time between teams or departments.
- Redundant rewriting of code that has already been written.
Lean software development teams work collaboratively to identify and remove inefficiencies early on.
2. Build Quality In
Lean teams build quality in every phase of the software development lifecycle. Withusing strategies like automated tests, pair programming, and continuous integration, lean teams ensure they don’t wait till the end to test.
3. Create Knowledge
Teams should treat every sprint, release, or onboarding interaction as an opportunity to learn. Vteams document insights gained and lean strategies they plan to improve decisions made next time.
4. Defer Commitment
It is best to avoid locking key decisions too early in the lifecycle. Withhold making decisions until enough information has been gathered to make a more informed decision.
5. Deliver Fast
Enabling users to provide feedback quickly and try out each new feature is the greatest advantage of deploying updates frequently. Releases should be small and they should be frequent.
6. Respect People
Lean teams respect everyone, meaning, all stakeholders will have equal voice: developers, testers, users, and managers.
7. Optimize the Whole
Instead of trying to improve a single component of a system, consider the whole value stream: starting from the idea and moving on to the deployment.
While the software development techniques are diversified into paradigms, the principles remain the same. The core principle strives towards ensuring flexible and customer-centric approaches.
Lean Software Development Methodology
Each process of the lean software development methodology relies on a fusion of specific tools, practices, and outer organizational structures. The following are some key components:
- Value Stream Mapping. Diagrams that define each of the segments to aid in defining bottleneck areas.
- Just-in-Time Development: Build feature sets and functionalities upon the actual requirement.
- Pull Systems: Work assignment is limited to available capacity and is not assigned indiscriminately. This prevents burnout.
- Continuous Integration/Delivery (CI/CD): There is frequent testing and deployment of small sections of code.
- Minimal Viable Product (MVP): Software products are issued in their most basic formats with iterative enhancements done post-user feedback analysis.
- Visual Management: Conducting tracking progress and prioritization of tasks via tools like kanban boards.
All these factors combined create an ecosystem focused on product excellence and provides an edge in fast-paced production scenarios.
Perks of Lean Software in Manufacturing
What motivates more companies to integrate lean software development into their practices? Here are a few predominant reasons lean software development is gaining traction:
- Improved Competitive Advantage: Staying ahead of the competition through fast increments and responsive adaptations.
- Cost Efficiency: Cost-effective precision due to elimination of wasteful expenditures
- Enhanced Standards: Elevated focus on prompt detection and resolution of defects through iterative evaluation.
- Increased Acceptance: Higher chances of adoption through employee-centric need responsive solutions.
- Adaptability: Respond to market dynamics with precision and without extensive redesign expenses.
- Uniform Collaboration: Merged and cohesive work structure between IT and production teams.
Lean Software Use Cases:
1. Automotive Manufacturer
A U.S.-based carmaker utilized lean software development to create a tailored master engineering system. The company reduced downtime by 25% while enhancing visibility on production lines by continuously receiving feedback from floor workers and implementing weekly updates.
2. Food Processing Company
A frozen food brand needed real-time inventory tracking. A lean development team built a simple MVP in 4 weeks. After validating with plant workers, they expanded the system in phases. Waste from expired stock dropped by 30 percent.
3. Aerospace Parts Supplier
By applying lean management software development principles, this supplier rebuilt its ERP modules one by one. Each was released, tested, and optimized with team input. The result: fewer software crashes and higher employee satisfaction.
Challenges and How to Overcome Them
Like any approach, lean manufacturing software development has challenges:
- Lack of Initiative: Iterative development isn’t for everyone. Advocate for strong training and change champions.
- Misaligned Goals: Make sure the developers, managers, users, and all other stakeholders are on the same page.
- Incomplete Feedback Loops: Devs need to actually hear suggestions from factory teams.
- Scope Creep: Controlled scope doesn’t mean no boundaries. Objectives must be precise.
These all need to be solved with a dedication to strong organization, open dialogue, and flexible leadership.
Final Thoughts
Lean manufacturing software development provides an advantage to developing software by eliminating unnecessary steps and turns information technology into a tool for strategic advantage.
Be it an ERP, a supply chain tracker, or designing a production planning tool – applications of lean software development principles are multifold. These principles will accelerate the pace of development while improving the quality of the software.
Mindsets have changed fundamentally. From 2025, and in the years beyond, lean transforms into something much deeper than a methodology. For manufacturers looking to stay ahead, it becomes the secret sauce for effective software solutions.
Looking for guidance on incorporating lean practices into your software development workflow? Start by seeking out specialists in manufacturing software development to ensure your project is set on a solid foundation from day one.

Written By, Shravan Rajpurohit
Shravan Rajpurohit is the Co-Founder & CEO of The Intellify, a leading Custom Software Development company that empowers startups, product development teams, and Fortune 500 companies. With over 10 years of experience in marketing, sales, and customer success, Shravan has been driving digital innovation since 2018, leading a team of 50+ creative professionals. His mission is to bridge the gap between business ideas and reality through advanced tech solutions, aiming to make The Intellify a global leader. He focuses on delivering excellence, solving real-world problems, and pushing the limits of digital transformation.
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