This paper analyzes the philosophy behind the Lean methodology and its implementation in the company, more specifically in the segment of production. The paper also describes how the mentioned methodology copes with the challenges and problems of the modern market, how it is implemented in the production system and what advantages it can provide if it is well implemented. The company that is used as an example, for all that is mentioned above, is Kostwein – Proizvodnja Strojeva d.o.o. After a brief description of the company, a more extensive one follows, in which it is written about how Lean tools were applied to improve the characteristics of the department for practitioners, which has been failing to achieve assigned goals for some time now. It is shown how the mentioned tools can positively influence the productivity and efficiency of the department, by increasing product quality and reducing wastage. Furthermore, it is shown how using Lean can help in balancing machine capacity and availability of work and how dangerous „bottlenecks“ of production can be eliminated.