Identifying Waste

© Operational Excellence Consulting. All rights reserved.
Identifying
Waste
Discover & Eliminate

© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
1. Discover waste in your work environment
2. Learn how to remove waste
3. Learn how to prevent waste
Copyrights of all the pictures used in this presentation are held by their respective owners.

Contents
1. What is Waste?
2. Four Models of Waste
3. How to Discover Waste
4. How to Remove Waste
5. How to Prevent Waste
NOTE: As this is a PREVIEW, only selected
slides are shown. To download the complete
presentation, please visit:
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What is Value?
 Value is the worth of a product or service delivered to a
customer
 It is the degree to which a customer need or desire is
fulfilled and may include:
 Quality
 Usefulness
 Functionality
 Availability
 Price
 and so on

What is Value-Added?
 Value-Added
 Is any activity that increases the market, form, or function of the
product/service
 These are things the customer is willing to pay for

What is Waste?
 Non-Value-Added = Waste
 Any activity that adds cost or time but does not add value
 These activities should be eliminated, combined, reduced or
simplified

“There is nothing so
useless as doing
efficiently that
which should not be
done at all.”
Peter Drucker

How Does Waste Take Root?
 We find solutions to conditions and then forget to change
the solutions when the conditions change, e.g. stopgap
solutions
 Over time, when conditions change, we no longer
remember why we do certain things or what problem
they were intended to solve
 Hence it is important to ask why, over and over again,
about everything we do. Only in this way will waste fail to
take root.

Waste Takes Root When We Accept Stopgap
Improvement
A Problem
Occurs
Evading the problem
“For the time being, let’s…”
Institutionalization
“Let’s find ways
to work around it.”
Habituation
“We’ve always done it
like this.”
Substantiation
“No one has any objection
to the way we do this now.”
Stopgap
Improvement
Ask “why” until root cause is
understood
Real
Improvement
Apply best solution
Problem is solved

Benefits of Identifying & Eliminating
Waste
 To the Company
 Cutting the hidden costs of production
 Increased customer satisfaction
 To the Employees
 Increased job satisfaction
 Contributing to improvement

Four Models of Waste
1. The three MUs
2. The 5M + Q + S
3. The flow of goods
4. The eight types of waste (manufacturing and
service/office)

Activities that do
not add value
Workload that
is uneven
Work that creates burden for the
team members or processes
What Are the Three MUs?

Explanation of the Three MUs
The
Three
MUs
Meaning in
English
Explanation
(using example of Capacity versus Load)
Muda • Waste
• Capacity exceeds
Load
Mura
• Unevenness
• Inconsistency
• Variation
• Capacity sometimes
exceeds the Load
• Load sometimes
exceeds the Capacity
Muri
• Overburden
• Irrationality
• Load exceeds
Capacity

The 5M + Q + S
Man
The waste of:
• Walking
• Waiting
• Searching
• Unnecessary movement
• Not easily recognizable waste
Machine
The waste of:
• Large machines
• General purpose machines
• Conveyors
• Machines with wasteful
movements
• Breakdowns
• Machine handling
Material
The waste of:
• Parts
• Bolts
• Welds
• Functions
• Storage and handling
Management
The waste of:
• Materials
• Meetings
• Management Control
• communications
Safety
The waste of:
• Disaster prevention methods
• Fixing defects
(“Safety first” really requires
removing all waste that can lead
to accidents and/or injuries
Quality
The waste of:
• Making defective goods
• Fixing defects
• Errors
• Inspection
• Quality control
Method
The waste of:
• Large lot production
• Inventory
• transportation
• Retention
• Non-standardization
• Picking up and setting down
work pieces

The Flow of Goods
1. Materials are procured
• Materials are retained in the
warehouse
• Materials are conveyed to
processes on the production line
• Materials are retained at the
process equipment (WIP)
• Materials are picked up for
processing
2. Materials are processed
• Processed goods are set down
and retained on the other side of
the processing machine (WIP)
• Goods are conveyed to an
inspection point
• Goods are retained until inspected
• Goods are set down and retained
on the other side of of the
inspection process
• Inspected goods are conveyed to
the finished goods warehouse
• Finished goods are retained until
prior to shipment
3. Finished goods are
delivered to customer
Four key activities can be observed
from the flow of goods:
1. Retention (Non-value-add)
2. transportation (Non-value-add)
3. Processing (Value-add)
4. Inspection (Non-value-add)

The 8 Types of Waste (Manufacturing)
Overproduction
Producing more than what
the customer needs
Inventory
Building and storing extra
products the customer has
not ordered
Transportation
Moving from one
place to another
Defects
Reprocessing, scrap or
correcting work
Over-processing
Adding excess value
when the customer
does not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
parts, machine, process or
information
Waste

The Eight Types of Waste in a
Production System
Transportation Processing waste
Inventory Defects
Overproduction
(production methods)
Motion waste
(operation methods)
Waiting time
(imbalances)
Intellectual waste

Overproduction
 It is the worst of the eight waste
 It is the exact opposite of just-in-time
production
 Overproduction means making what
is unnecessary, when it is
unnecessary, and in unnecessary
amounts
 Occurs when you manufacture items
when there are no orders

Causes of Overproduction
 Large-lot production
 Anticipatory production (producing product in advance of
demand)
 Long changeover times
 Building enough stock to replace defective parts
produced
 Overstaffing, or too much equipment
 Machines that turn out parts too quickly

How to Eliminate Overproduction
 Line balancing
 One-piece flow
 Pull production using kanban
 Quick-changeover operations
 Level-production – small-lot, mixed production

“We must always
keep in mind that
the greatest waste is
the waste we don’t
see.”
Shigeo Shingo

Three Approaches to Discover Waste
 Using the back door
 Bringing latent waste to the
surface
 Analyzing current conditions

Five Key Points for Discovering Waste
Through the Back Door
1. Look at the three real
things:
 The factory
 The facts
 Work-in-process
2. Ask “What?”
 Ask what the operation is about
3. Ask “Why?”
 Ask why the operation is
necessary
4. Everything that is not work
is waste
 Once you have found out what
the operation’s essential
function is, you can properly
identify as waste everything in
the operation that does not
directly execute that function
5. Ask “Why?” at least five
times to find root causes
 Ask why at least five times
concerning each wasteful part of
the operation. This will lead you
to the real waste
Draft an improvement plan. Ask “How?”

• Creates an end-to-end view of the production system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier Management
Control
Customer
Work & Information Flow
Information flow
A Value Stream Map Provides An Overview
Of The End-to-end Production Process

Guidelines for Removing Waste
1. Adopting the necessary attitude
2. Removing waste in the movement of goods
3. Removing waste in the actions of people
4. Removing waste in the way people, goods and
machines are combined

How to Prevent Waste
 There are four important methods for maintaining a
waste-free production environment:
1. Standardization
2. Visual controls
3. Auditory controls
4. 5W + 1H

Standardization
 Standards are required for:
 Machines
 Operations
 Defining normal and abnormal
conditions
 Clerical procedures
 Procurement

Visual & Auditory Controls
 There are six visual and
auditory tools you can use:
 Red-tagging
 Signboards
 Outlining
 Andons
 Kanban
 Pitch and inspection buzzers

About
Operational
Excellence Consulting

About Operational Excellence
Consulting
 Operational Excellence Consulting is a management training and
consulting firm that assists organizations in improving business
performance and effectiveness.
 One of our unique strengths is going beyond a tools-focused
approach to seamlessly integrate people, processes, technology
and continuous improvement initiatives to suit the specific needs
and situations of our clients.
 We provide corporate learning programs and management advisory
services to assist our clients to achieve breakthrough in business
performance and effectiveness. Our aim is to support our clients in
designing, managing and executing lasting beneficial change.

END OF PARTIAL PREVIEW
To download this presentation,
please visit us at:
www.oeconsulting.com.sg

Identifying Waste

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