The competitiveness of small and medium sized enterprises (SMEs) is vital for the European economy. Also, manufacturing is often the core competence of SMEs. Adopting lean philosophy is a viable and popular approach for developing production and enabling continuous improvement. Despite the increased interest in empirical lean research, the body of knowledge about lean manufacturing development in SMEs is currently insufficient. This paper describes a study of a lean development project in a Finnish-based manufacturing SME. A current state analysis and development proposals are presented. The project applies a framework that other SMEs can utilize in identifying their problem areas and creating development proposals for their production activities. The results of the study contribute to the existing body of knowledge in lean manufacturing. In addition, managers in SMEs can utilize the study results as a reference when designing production development projects.