Globally large scale industries are in the fore-front of industrial engineering and for Small Medium Enterprises (SMEs) to remain competitive in the global competition which is largely controlled by large scale enterprises. The search for new revenue sources and implementing new cost cutting initiatives should be adopted by SMEs. To sustain their competitive advantages, one of these measures is the application of lean manufacturing system that was first introduced in the 1990. The purpose of this study is to apply lean manufacturing principles to small and medium scale industries in Nigeria. This study first describes the origin and concepts, specifically the concept of Value Stream Mapping (VSM) of lean production system to pinpoint how this system can be applied. The result from this study demonstrates that applying lean production system in small scale industries can reduce waste and increase values for customers.