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7 TYPES OF WASTES <ul><li>1.Motion </li></ul><ul><li>2.Transportation </li></ul><ul><li>3.Waiting time </li></ul><ul><li>4.Overproduction </li></ul><ul><li>5.Processing time </li></ul><ul><li>6.Defects </li></ul><ul><li>7.Inventory </li></ul>www.a2zmba.com

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TRANSPORT WASTE MOTION WASTE <ul><li>Characteristics: </li></ul><ul><li>• Extra carts, fork lifts, dollies </li></ul><ul><li>• Multiple Storage Locations </li></ul><ul><li>• Extra Material Racks </li></ul><ul><li>• Complex Inventory Management </li></ul><ul><li>• Extra Facility Space </li></ul><ul><li>• Incorrect Inventory Counts </li></ul><ul><li>• Damaged Material </li></ul><ul><li>Causes: </li></ul><ul><li>• Large Lot Processing </li></ul><ul><li>• Unleveled Schedules </li></ul><ul><li>• Lack of 5 S’s </li></ul><ul><li>• Lack of Visual Controls </li></ul><ul><li>• Improper Facility Layout </li></ul><ul><li>• Large Buffers and In Process Kanbans </li></ul><ul><li>Characteristics: </li></ul><ul><li>• Looking for Tools </li></ul><ul><li>• Excessive Reaching or Bending </li></ul><ul><li>• Material Too Far Apart (Walk Time) </li></ul><ul><li>• Equipment for Moving Parts </li></ul><ul><li>• Extra “Busy” Movements While Waiting </li></ul>www.a2zmba.com Causes: • Equipment, Office & Plant Layout • Lack of 5 S’s • Lack of Visual Controls • Inconsistent Work Methods (Standardized Work) • Large Batch Sizes

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Waiting time <ul><li>Waste that results from customer orders, inventory, or completed products waiting in queue for a process to begin. </li></ul><ul><li>High inventory encourages higher product waiting time </li></ul><ul><li>Operator waiting time implies under-utilization and poor control of workflow </li></ul><ul><li>Reduces value for customers </li></ul><ul><li>Increases delay to obtain financial return on the product </li></ul>www.a2zmba.com

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Waiting time continued… <ul><li>Characteristics: </li></ul><ul><li>• Man Waiting for Machine </li></ul><ul><li>• Machine/Materials Waiting for Man </li></ul><ul><li>• Unbalanced Operations (Work) </li></ul><ul><li>• Lack of Operator Concern for Equipment Breakdowns </li></ul><ul><li>• Unplanned Equipment Downtime </li></ul><ul><li>Caused due to : </li></ul><ul><li>Inconsistent work methods </li></ul><ul><li>Long machine change over time </li></ul><ul><li>Low man/machine effectiveness </li></ul><ul><li>Results : </li></ul><ul><li>Long lead times </li></ul><ul><li>Wasted floor space </li></ul><ul><li>Increased damage </li></ul><ul><li>Potential obsolescence </li></ul><ul><li>Misplaced items </li></ul><ul><li>Demoralized workforce </li></ul><ul><li>Ineffective use of time </li></ul><ul><li>Ineffective production planning </li></ul>www.a2zmba.com

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OVERPRODUCTION <ul><li>The production of goods in excess of absolute consumer requirements </li></ul><ul><li>Manufacturing too much or too early or “just in case” </li></ul><ul><li>Discourages a smooth flow of goods and services </li></ul><ul><li>Leads to excess inventory </li></ul><ul><li>Producing more than needed, producing faster than needed </li></ul><ul><li>Characteristics: </li></ul><ul><li>Inventory Stockpiles </li></ul><ul><li>• Extra equipment/oversized equipment </li></ul><ul><li>• Unbalanced Material Flow </li></ul><ul><li>• Extra Part Storage racks </li></ul><ul><li>• Extra Manpower </li></ul><ul><li>• Batch Processing </li></ul><ul><li>• Complex Inventory Management </li></ul><ul><li>• Excessive Capacity/Investment </li></ul><ul><li>• Excessive Obsolescence </li></ul><ul><li>Causes: </li></ul><ul><li>Incapable processes </li></ul><ul><li>Just in case reward system </li></ul><ul><li>Lack of communication </li></ul><ul><li>Automation in the wrong places </li></ul><ul><li>Low uptimes </li></ul>www.a2zmba.com

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Processing time <ul><li>Effort Which Adds No Value To a Product or Service. </li></ul><ul><li>Results from steps in production processes that do not contribute value or create too much cost </li></ul><ul><li>Characteristics: </li></ul><ul><li>• Process Bottlenecks </li></ul><ul><li>• Lack of Clear Customer Specifications </li></ul><ul><li>• Endless Refinement </li></ul><ul><li>• Redundant Approvals </li></ul><ul><li>• Extra Copies/Excessive Information </li></ul><ul><li>Causes: </li></ul><ul><li>• Engineering Changes Without Processing Changes </li></ul><ul><li>• Decision Making at Inappropriate Levels </li></ul><ul><li>• Inefficient Policies and Procedures </li></ul><ul><li>• Lack of Customer Input Concerning Requirements </li></ul>www.a2zmba.com

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Defects <ul><li>Reduce or discourage customer satisfaction </li></ul><ul><li>Defects have to be rectified </li></ul><ul><li>Rectification costs money with regard to time, effort and materials </li></ul><ul><li>Loss of customers </li></ul>www.a2zmba.com

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Inventory waste <ul><li>Waste that consists of excess inventory over and above that which is necessary. </li></ul><ul><li>It increases costs and lead times </li></ul><ul><li>Reduces quality and flexibility </li></ul><ul><li>Characteristics: </li></ul><ul><li>• Extra Space on Receiving Docks </li></ul><ul><li>• Material Between Processes </li></ul><ul><li>• Stagnated Material Flow </li></ul><ul><li>• LIFO instead of FIFO </li></ul><ul><li>• Extensive Rework When Problems Surface </li></ul><ul><li>• Long Lead Time for Engineering Changes </li></ul><ul><li>• Additional Material Handling Resources (Men, Equipment, </li></ul><ul><li>Racks, Storage Space) </li></ul><ul><li>Causes: </li></ul><ul><li>• Incapable Processes </li></ul><ul><li>• Uncontrolled Bottleneck Processes </li></ul><ul><li>• Incapable Suppliers </li></ul><ul><li>• Long Change Over Times </li></ul><ul><li>• Management Decisions </li></ul><ul><li>• Local Optimization </li></ul>www.a2zmba.com

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The Toyota Production System was adopted by many Japanese companies in the aftermath of the 1973 oil shock “Waste” Elimination Philosophy: “ .. Above all, one of our most important purposes was increased productivity and reduced cost. To achieve this purpose, we put our emphasis on the notion of eliminating all kinds of unnecessary functions in the factories. Our approach has been to investigate one by one the causes of various &quot;unnecessaries&quot; in manufacturing operations and to devise methods for their solution, often by trial and error ...” Taiicho Ohno, Former Vice President, Toyota Motor Corp., Former President, Japan Industrial Management Association; Former Chairman, Toyoda Spinning and Weaving Co., Ltd. www.a2zmba.com

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IDENTIFICATION AND ELIMINATION OF WASTE <ul><li>Philosophy </li></ul><ul><li>Identification and elimination of waste is the central theme of a lean manufacturing production system </li></ul><ul><li>Lean manufacturing is a dynamic and constantly improving process dependent upon understanding and involvement by all employees </li></ul><ul><li>Successful implementation requires that all employees must be trained to identify and eliminate waste from their work </li></ul><ul><li>Waste exists in all work and at all levels in the organization </li></ul>www.a2zmba.com

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The Five Elements of 5S www.a2zmba.com Systematic Systematic Organization - Identifying what items are required and which are not. Sorting Visual Placement- Items should be easily retrievable, easy to get, and visual-easy to see. Self-Discipline/Control- Ensuring that Systematic Organization, Visual Placement & Cleanliness are maintained. Scrubbing Clean- Keep the area free from debris, dirt, oil, items not needed. Standardizing Control- Maintain and continually improve the previous improvements. 5s

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