In this knowledge transformation project Lean Manufacturing is aimed at improving SMEs competitiveness by changes in the production layout without investments in production facilities. The project involves 10-15 SMEs. Center for Industrial Production is responsible for the assimilation, and the project is carried through in cooperation with Teknologisk Institut. The CIP project group is Professor John Johansen, Assistant Professor Brian V. Sørensen, Assistant Professor Jacob S. Nielsen and Ph.D. student Mads R. Andreassen. The project period is January 2005 through December 2006.