The production systems of manufacturing industries have a vital role in companies’ success. A less productive work station is one of the causes of lower production output and profitability. The production system needs to be well organized and use effective systems to be competitive in the global market. The case company used for this study is Bahir Dar Textile Share Company. The garment section of BDTSC is one of the bottlenecks for company profitability associated with poor manufacturing practice and lower effort to address customer needs. Therefore, in this study, to improve productivity the lean manufacturing principles are utilized. According to lean thinking, the production process is a combination of value-adding and non-value-adding operations and productivity improvement is achieved by eliminating non-value-adding operations. Lean manufacturing has tools that are used to systematically study and analyze the production process known as value stream mapping. The value stream mapping helps to effectively implement lean manufacturing principles and model the new production model. Some of the waste types identified in the production line were lower resource utilization, excess inventories, waiting time, transportation, excess information flow, and lower flexibility. The study reveals that the improved production system reduces the lead time from 73.57 hours to 4.09 hours by 94.4 percent, non-value-added time from 4183 min to 172 min by 96.2 %, and the inventory was reduced from 7050 pair to 750 pair of bed sheet by 89.35%. On the other hand, by using a flexible production system the product variety is increased from one bed sheet to six bed sheet types per day. Besides the customer-oriented production system increase the production output by 16%, the utilization of the human resources increased by 10.3%. Lastly, the lean production system is an effective tool to improve the productivity of garment production in the textile industry.