This research is design to analysis current scenarios on the selected Basic Metal and Steel Industry regarding to lean production elements practice using secondary data and observation. Before direct investigation on the field, selected lean elements are identified from literature using key words related to lean production and implementation techniques. From literature, holistic approach studies and implementing lean production in continuous based process industries has found as a limitation. In addition to that, lean production system appears to be unknown and misinterpreted on selected sectors under this investigation. Skill shortage, adoption of new technology, linkage b/n upstream and downstream activities, product diversification and development, labour productivity and product quality, technological capability, and management problems are raised as problems. The most four critical problems have selected and conceptual frame works and suggestions proposed for further improvement. On the leanness assessment, necessity of having contextualized and systematic approach on solving continuous improvement related problems facing metal and steel industries have given emphasis based on data analysis findings. So, that leanness strategy is contextualized as Ethiopian farming system and the systematic approach is developed using system dynamics modeling technique to enhance the competitiveness of Ethiopian Metal and Steel Industries through lean manufacturing.