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Waste in production

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7 Wastes

7 Wastes

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  • 1. WASTE IN PRODUCTION
  • 2.  Waste: Anything other than the exact amount of equipment, materials, parts, space, and workers' efforts that are absolutely essential to add value to a product.  This is: Everything that increases production costs without adding value to what is being produced.  Value-Added: Anything that the customer wants and is willing to pay for it.  Non-Value-Added: Anything that the customer doesn't wants and won’t pay for it.
  • 3. Types of Waste in Production 1. Overproduction. 2. Wait Time. 3. Transportation waste. 4. Processing waste. 5. Motion/Movement waste. 6. Inventory waste. 7. Defects waste.
  • 4. Overproduction  Producing more products than is needed, faster than needed or before they are needed is a waste.  Adding extra units to the quantity needed “just in case” or building to a pre-defined lot or batch size is also wasteful.
  • 5. Consequences of Over- Production  Loss of Production Control.  Fixing rejects becomes a low priority.  Increased Mix-ups, mistakes and confusion.  Valuable time and resources consumed (wasted) building products that are not a priority.
  • 6. Overproduction Causes  Poor Planning Process.  “Just-in-case” instead of “Just-in-time” production.  Poor communications between departments.  Low Capability Processes, that are unable of producing the quantity and/or quality required in a consistent basis.  Prolonged setup and cycle times.  Sub-optimization caused by local optimization (Processes that benefits a single department’s interests against the organization’s interests).  Low equipment reliability.
  • 7. Wait Time  Wait time waste occurs when a worker cannot proceed with the next task in a process.  There are workers waiting and doing nothing (wasting their time or making others waste theirs) while others workload is excessive.
  • 8. Wait Time causes  Lack of an adequate maintenance.  Need of proper tools or materials.  Lengthy setup times.  Lack of cross training.  Lack of SOP or undocumented work methods.  Production bottle necks.  Irregular distribution of training.
  • 9. Consequences of Wait Time waste  Personnel that cost doing nothing (adding no value).  Delays that lead to overtime to conclude what was programmed.  Costs due to inefficient processes that exceed the standard costs.  Loss of motivation; Low morale.
  • 10. Transportation Waste  Any material movement that does not directly support immediate production.  When product is transported to a place other than the next process location or, the next process is not located adjacent to the current one.
  • 11. Examples of Transportation waste  Units are parked off the production floor to gather a “full lot” for a batch operation.  Production Lots that are sent off to the other side of the plant for the next process step.  This can occur, either between operations or within an operation where workstations are not properly laid off.  Containers that are too big and difficult to open or close.  Excess of material handling equipment. Lift-trucks that travel empty.
  • 12. Transportation waste causes  Improper Facility Layout  Large buffers .  Large lot purchasing or processing.  Poor production planning.  Poor scheduling.  Poor work place organization.
  • 13. Processing waste  Any unnecessary step, either production or communication, that adds no value to a product or service.  Occurs when we execute an operations, and the customer is not willing to pay for what is being done.
  • 14. Processing waste causes  Lack of a concurrent design.  Processes poorly documented (Lack of SOP’s).  Lack of customer input concerning requirements.  Poor configuration control.  Quality Standards not related to customer needs.  Redundant inspections and approvals.
  • 15. Consequences of Processing waste  Time spent building a feature that is irrelevant to the customer and that the customer will not pay for.  Additional costs for materials used in excess.  Lack of control because improper use of design documents.  Products that either, exceed the requirements of the customer or fail to comply with them.
  • 16. Motion/Movement waste  Anymovement of people which does not contribute to add value to the product or service.  Persons moving from one place to another create a false impression of being working, while in reality, are doing nothing. They are costing while adding no value.
  • 17. Consequences of Motion/Movement waste  Employees move from one workstation to another, doing nothing.  They are unnecessary trips.  No value is added during this process.  Include time spent looking for parts, tools, fixtures, etc.  Include time spent going to/froma warehouse.
  • 18. Motion/Movement waste Causes  Ineffective Layouts (equipment, office and plant).  Lack of Visual controls.  Poor Process Documentation.  Poor work place organization.
  • 19. Inventory waste  Any supply (Materials or Goods) in excess of what is required to deliver products in a Just- In-Time manner.  These parts will need to be processed, moved, counted, stored, etc. Will add to costs and can not be shipped to our customers.
  • 20. Inventory waste causes  Poor sales forecasting (Demand Forecasting).  Long lead times (set-up and cycle times).  Poor inventory planning.  Poor inventory tracking.  Unbalanced production processes.  Processes that can not produce the required quantity or quality of products in a consistent manner.  Suppliers that can not supply the required quantity or quality of products in a consistent manner.
  • 21. Consequences of Inventory waste  Large lot purchases of raw materials, only to be stored for weeks or months.  Very large WIP’s inventories.  Low inventory turnover. Need of large working capital to finance inventories.  Damaged Products.  Obsolete products.
  • 22. Defects waste  Costs due to sorting, repairing and/or repairing products.  Include cost of materials scrapped due to defects.  Also consist in the cost of goods returned by customers, recall campaigns.  Recycling part of the products is also a waste.
  • 23. Defects waste causes  Too many product models.  High inventory levels.  Inadequate tools/equipment.  Poor employee training.  Poor layouts.  Unnecessary handling.  Poor process documentation.  Processes that can not produce the required quantity or quality of products in a consistent manner.  Suppliers that can not supply the required quantity or quality of products in a consistent manner.
  • 24. Consequences of Defects waste  Excessive processing costs.  Many additional non-value-added processes or operations.  Additional quality control inspections needed.  Damaged relations with customers.