The study focused on addressing inefficiencies in garment manufacturing SMEs, a critical sector for economic growth in Peru. Prior research highlights persistent challenges such as high defect rates, inefficient layouts, and machine downtimes that compromise productivity. This research developed and implemented a Lean Manufacturing-based production model combined with Systematic Layout Planning (SLP) to tackle these issues. The model emphasized waste reduction through tools like 5S and standardized work, alongside optimizing plant layouts to improve workflow. Results demonstrated a 15.40% reduction in cycle time, a 68% decrease in reprocessing rates, and a 47.83% improvement in on-time deliveries, saving 163,000 PEN annually. These findings underline the transformative potential of Lean principles in enhancing SME competitiveness and operational sustainability. Future research should explore the model's scalability across industries and its integration with digital technologies, paving the way for broader innovation in production management. This work contributes to advancing Lean Manufacturing’s applications in emerging economies.