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Lean Wastes


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Lean Thinking Workshop

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Lean Wastes

  1. 1. © 2015 Zulfa Managment Consulting. All Rights Reserved. Zulfa Management Consulting To get closer … @zulfateam @zulfateam 59 084 2622 Hussain Yasin Al-Ahmed Management Consultant @hussain_alahmed @hyahmed
  2. 2. © 2015 Zulfa Managment Consulting. All Rights Reserved. Lean is NOT ...Clearing confusions 2 It is not a magic wand or silver bullet to fix everything It is not rocket science. It is simple It is not a system to reduce headcount It is not a diet program It is not a solution to personnel or performance issues It is not only for factories. It works everywhere
  3. 3. © 2015 Zulfa Managment Consulting. All Rights Reserved. What is Lean?Basic definitions 3 Lean is simply is: “ A systematic approach to continuously eliminate waste within a process ” It may be referred to as: •Continuous Improvement •Kaizen •Operational Excellence
  4. 4. © 2015 Zulfa Managment Consulting. All Rights Reserved. What is LeanThe Five Principles Produce - only what the customer wants, - only in the quantities they want, - only when they want it, - only by doing the tasks that add value. Identify Value as Percieved by Cusotmers Map the Value Stream Esatblish Customer Pull System Seek Perfection Through Kaizen Create Flow By Eleminating Waste JIT Just In Time
  5. 5. © 2015 Zulfa Managment Consulting. All Rights Reserved. History of LeanOver 60 Years of Continuous Improvement 5 1911 Frederick Taylor developed scientific management principles 1903 Henry Ford manufactured the first commercial fuel engine car Model A 1908 Ford established its first assembly line Model T Toyota was founded by Kiichiro Toyoda and his son 19331950 Edward Deming made the PDCA improvement cycle popular 1946 Toyota suffered from post war depression and the great strike 1913 Ford built the first moving assembly line 1970 Taiichi Ohno finished buidling the Toyota Production System (TPS) after WWII 1984 The rise of Total Quality Management (TQM) Theroy 1990 Jack Welch created Six Sigma and the Center of Exellence at GE 2000 Continouos Improvement, LSS and Operational Excellence Strategies are adopted by many organizations in different fields Motorola initiated Six Sigma Quality 1980 1939 to 1945 World War II
  6. 6. Formula 1 Pit-Stop Movie Time
  7. 7. © 2015 Zulfa Managment Consulting. All Rights Reserved. 7
  8. 8. © 2015 Zulfa Managment Consulting. All Rights Reserved. Why Focus on Process?Why not something else? 8 Inputs Outputs 80% Process • Material • Information • Customers • Products • Services • Material • Information • Customers • Resources (people, facilities, equipment) • Steps and decisions
  9. 9. © 2015 Zulfa Managment Consulting. All Rights Reserved. Process WasteIs the step value added? 9 Value-Added (VA) Step Non-Value Added (NVA) Step (Waste) Before After Lead time = 7 Hours Lead Time = 3 Hours
  10. 10. © 2015 Zulfa Managment Consulting. All Rights Reserved. Value Added vs WasteWaste is Everywhere 10 30% 60 % 10% Value Added Non-Value Added (Waste) Non-Value Added but Necessary Is the customer willing to pay for this specific step? 1 Does the step transform the product or service?2 Was the step done first time correctly?3 Ask these 3 questions to know if the step is value added: If one if the answers is NO, then the step is waste.
  11. 11. © 2015 Zulfa Managment Consulting. All Rights The 8 Types of Waste Muda (Surface wastes) Defects1 Over Production2 Waiting3 Non-Utilized Talent4 Extra Processing8 Motion7 Inventory6 Transportation5 Photo Credit Tim and Selena Middleton The first step is seeing the waste!11
  12. 12. © 2015 Zulfa Managment Consulting. All Rights Overproductio n Doing more than required 12 Producing more products or services than the customer needs or downstream process can use right away. Examples: •Oversupply •Wasted raw material •Too many meetings •Not required work •A report that no one reads •Sending unnecessary e-mails Common Causes: •Unclear customer demand •Push production system •The production line cannot be stopped •Long and complicated changeovers •Unbalanced work flow •Poor worker distribution •Batching Every years billions of dollars are lost because of excess medicines prescribed by doctors. Photo Credit Hussain Al-Ahmed 12
  13. 13. © 2015 Zulfa Managment Consulting. All Rights InventoryStorage 13 Unnecessary storage of information and material •Physical Inventories •Queues of customers •Digital Information in database Examples: •Too much stock in the warehouse •High backlog or WIP (Work In Process) •Customers waiting to be served •System transactions waiting for actions •Unread and undeleted e-mails •Old and outdated documents •Duplicate files Common Causes: •Overproduction •Batching •Late inventory updates •Material replenishment system problems •Disconnected storage locations How much is needed? Photo Credit Wikipedia
  14. 14. © 2015 Zulfa Managment Consulting. All Rights InventoryWhy is it a problem? 14 Inventory hides problems High Inventory Reducing Inventor y Source: adapted (Slack etl, 2009) • Phyical invnetory ties up working capital • Time-Cost to the waiting customer • Cost of system setup access, update and miantenance Cost • Items requires storage space • Customers require waiting area • IT system requires memory, security and special environment Space • Physical items may deteroriate over time or obselete • Customers may get upset if they wait for too long • Data may get corroupted or lost Quality • Physical inventories may hide problems • Waiting customers may put undue pressure on the staff causing quality issues • Databse needs constant management, acess control and maintenance Operations
  15. 15. © 2015 Zulfa Managment Consulting. All Rights TransportationMoving things 15 Moving products, equipment, material, information, or people from one place to another. Photo Credit Garry Knight Will he add value by moving the books?15 Examples: •Shipping products •Mobilizing equipment and people •Moving material in the shop •Moving spare parts •Forklifts and cranes •Moving marketing material for tradeshows Common Causes: •Poor facility layout (distance and sequence) •Poor planning and communication •Not leveraging technology •Overproduction and high inventory •Improper storage solutions
  16. 16. © 2015 Zulfa Managment Consulting. All Rights MotionSearching 16 Unnecessary movement of people or machines that takes time and uses energy and may create health and safety risks. Examples: •Searching for hand tools or material •Going to the supervisor office •Excessive reaching or bending •Walking to find people or information •Trips to copier machine or printer •Extra computer clicks •Looking for specific files in computer •Searching in the web Common Causes: •Facility layout •Shared hand tools •Workstation design •Poor workplace organization and housekeeping •Manual processes and not leveraging technology •Ineffective information sharing Are they working? Photo Credit Hussain Al-Ahmed16
  17. 17. © 2015 Zulfa Managment Consulting. All Rights DefectsRework / Correction/ Errors 17 The efforts involved inspecting for and fixing errors, mistakes. Examples: •Failed outgoing equipment inspection •Quality problems and failures •Corrections and rework •Scrap and junk •Returned documents and invoices •Rejected paperwork •Incorrect approval chain •Unsaved computer work Common Causes •Lack of standard work •Training problems •Unclear or complex process •Voice of the customer is absent •Missing or incomplete information How much will it cost to fix this!17
  18. 18. © 2015 Zulfa Managment Consulting. All Rights WaitingDelays 18 Idle time created when material, information, people, or equipment is not ready Examples: •Operator waiting for machines to finish cycling •Waiting for Forklift •Products waiting for people •People waiting for material •People waiting for other people •Waiting for information, decisions or approvals •Waiting for customer specifications •Waiting for supplier confirmation •Slow or broken computers or internet Common Causes •Unbalanced work flow •Lack of workers •System down time •Machine breakdowns Keep Calm and Just Wait! Photo Credit Hussain Al-Ahmed 18
  19. 19. © 2015 Zulfa Managment Consulting. All Rights Extra Processing Overdoing it Process steps that do not add value to the product or service, including doing work beyond a customer’s specification. Examples: •Complex checklists with unused fields •Highly sophisticated machines for simple tasks •Curing material longer than engineering requirements •Doing maintenance more often than necessary •Approval queues •Printing every e-mail •Collecting unused data Common Causes •Not questioning the status quo •Unclear customer requirements •Lack of trust and control issues •Poor communication •Lack of effective and creative problem solving Ready to cut the apple in half? Photo Credit Hussain Al-Ahmed19
  20. 20. © 2015 Zulfa Managment Consulting. All Rights Non-Utilized Talent Not involving people Not adequately leveraging peoples’ skills and creativity Examples: •Technicians spending time doing paperwork •Engineers not trusted •Not involving people in improvements •Not utilizing people’s indirect skills Common Causes •“The boss knows everything” thinking •Misusing position power •Narrowly defined jobs and expectations •No effective suggestions and improvements procedures •Boundaries between different levels of the organizations OFF Switch off during work hours!20
  21. 21. © 2015 Zulfa Managment Consulting. All Rights Reserved. Defects Overproduction Waiting Non-Utilized Talent Extra Processing Motion Inventory Transportation The 8 Types of WasteDo you remember them? 21
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