Lean manufacturing concept is very broad; it is a manufacturing philosophy used tominimizenon-value adding activities association with time, labor & quality. It improvesthe production lead timeby continually removing the layer of wastes. High production lead time and un necessary resource utilization is one of the most challengingproblem for productivity atHibret Manufacturing and Machine Building Industry; Manufacturing wastes like un necessary motion, transportation waste, high work in process time, high waiting time and defective products tend to increase production lead time, customer dissatisfaction and late delivery time.Thepurpose of this study is to improve the production lead time and manufacturing flow efficiency by investigating, minimizing the manufacturing waste and non-value adding activities by using lean manufacturing techniques. First, the current production floor and production layouthas been studied and mapped using value stream mapping and spaghetti diagram in order to clearly identify the manufacturing waste. Next, Lean manufacturing techniques have been deployed to improve the bottle-neck areas in the present value stream. Based on the suggested improvement,the future value stream map has been analyzed and developed.The result of the study shows that production lead timecan be reduced by 23.66%;process cycle efficiencycan be improved from 27.6% to 36.2%; WIP time can be reduced by 25.59%; waiting time(non-value adding time)can be reduced by 37.74%; total distance traveled can be reduced by 61.2%; and the number of workers can be reduced by25%.Finally, the research will have significant benefit by improving production lead time and productivity of Hibret Manufacturing and Machine Building Industry.