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Module 4
Value & Waste
Value Added
Things the customer is willing to
pay for
Non-Value Added (Waste)
Activities that should be
eliminated, simplified, or reduced
Definitions
The Concept of Value Added
1. Waste exists at all levels
2. Waste must be identified
and eliminated
3. Employees must be trained
to recognize waste
Three Rules of Waste
D-O-W-N-T-I-M-E (8 Wastes)
Inappropriate Systems
Wasted Utility Resources
Wasted Materials
1. Defects – Rework & errors (documents & tools)
D-O-W-N-T-I-M-E (8 Wastes)
Defects – Rework & Errors
(Documents & Tools)
Defective,
red-tagged
tools
2. Overproduction − Doing unnecessary
work not requested
D-O-W-N-T-I-M-E (8 Wastes)
Overproduction
3. Waiting for the next process step
D-O-W-N-T-I-M-E (8 Wastes)
Waiting
4. Non-Engaging Employees − Under-utilized
employees
D-O-W-N-T-I-M-E (8 Wastes)
Non-Engaging Employees
Field and Office
» Unclear job descriptions
» Unclear expectations
» Disengaged employees
» Under-utilized employees
» Employees without a clear
sense of direction
» Ambiguous goals and objectives
» Specialist not utilized in his
or her area
D-O-W-N-T-I-M-E (8 Wastes)
5. Transportation − Transport of documents
& equipment
Transportation –
Transport of Documents & Equipment
D-O-W-N-T-I-M-E (8 Wastes)
6. Inventory − Obsolete inventory, excess
inventory, and shortage of parts
Inventory
7. Motion − Unnecessary movements
D-O-W-N-T-I-M-E (8 Wastes)
Motion
Field and Office
• Poor workstation
configuration
• Poor workstation-to-
workstation
configuration (non cellular)
• Standardized work not
implemented
• Walking to get materials
• Cluttered work areas
• Walking to and from copier
• Poor office layout
Qatar base: 2 D&M Maintenance
Technician movement to disassemble 1
tool :
38 moves, averaging 17 meters each
(646 meters!)
8. Extra Processing − Process of getting approvals
Three New Wastes: Inappropriate Systems, Wasted
Utility Resources, Wasted Materials
D-O-W-N-T-I-M-E (8 Wastes)
Extra Processing
General Philosophy
Waste is not a problem; it is a symptom.
Root causes of waste must be identified in order to
eliminate the waste.
Don’t let wastes affect your process, get them out of the way
» Defects
» Overproduction
» Waiting
» Non-engaging employees
» Transportation
» Inventory
» Motion
» Extra processing
Summary
D-O-W-N-T-I-M-E
1. Waste exists at all levels
2. Waste must be identified
and eliminated
3. Employees must be trained
to recognize waste

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module4s-valuewaste-final61609_download.pptx

  • 2. Value Added Things the customer is willing to pay for Non-Value Added (Waste) Activities that should be eliminated, simplified, or reduced Definitions
  • 3. The Concept of Value Added
  • 4. 1. Waste exists at all levels 2. Waste must be identified and eliminated 3. Employees must be trained to recognize waste Three Rules of Waste
  • 5. D-O-W-N-T-I-M-E (8 Wastes) Inappropriate Systems Wasted Utility Resources Wasted Materials
  • 6. 1. Defects – Rework & errors (documents & tools) D-O-W-N-T-I-M-E (8 Wastes)
  • 7. Defects – Rework & Errors (Documents & Tools) Defective, red-tagged tools
  • 8. 2. Overproduction − Doing unnecessary work not requested D-O-W-N-T-I-M-E (8 Wastes)
  • 10. 3. Waiting for the next process step D-O-W-N-T-I-M-E (8 Wastes)
  • 12. 4. Non-Engaging Employees − Under-utilized employees D-O-W-N-T-I-M-E (8 Wastes)
  • 13. Non-Engaging Employees Field and Office » Unclear job descriptions » Unclear expectations » Disengaged employees » Under-utilized employees » Employees without a clear sense of direction » Ambiguous goals and objectives » Specialist not utilized in his or her area
  • 14. D-O-W-N-T-I-M-E (8 Wastes) 5. Transportation − Transport of documents & equipment
  • 15. Transportation – Transport of Documents & Equipment
  • 16. D-O-W-N-T-I-M-E (8 Wastes) 6. Inventory − Obsolete inventory, excess inventory, and shortage of parts
  • 18. 7. Motion − Unnecessary movements D-O-W-N-T-I-M-E (8 Wastes)
  • 19. Motion Field and Office • Poor workstation configuration • Poor workstation-to- workstation configuration (non cellular) • Standardized work not implemented • Walking to get materials • Cluttered work areas • Walking to and from copier • Poor office layout Qatar base: 2 D&M Maintenance Technician movement to disassemble 1 tool : 38 moves, averaging 17 meters each (646 meters!)
  • 20. 8. Extra Processing − Process of getting approvals Three New Wastes: Inappropriate Systems, Wasted Utility Resources, Wasted Materials D-O-W-N-T-I-M-E (8 Wastes)
  • 22. General Philosophy Waste is not a problem; it is a symptom. Root causes of waste must be identified in order to eliminate the waste.
  • 23. Don’t let wastes affect your process, get them out of the way » Defects » Overproduction » Waiting » Non-engaging employees » Transportation » Inventory » Motion » Extra processing Summary D-O-W-N-T-I-M-E 1. Waste exists at all levels 2. Waste must be identified and eliminated 3. Employees must be trained to recognize waste

Editor's Notes

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  23. In summary, there are three basic rules in the pursuit of waste elimination through Lean. The first rule is waste exists at all levels of the organization. The second rule is that waste must be identified as NVA necessary or NVA and can be targeted for elimination or reduction. The third requirement is that all employees must be trained to recognize waste. Always remember D-0-W-N-T-I-M-E to help you recognize the eight forms of waste. Process efficiency will be improved by reducing waste. This process improvement guide is for you and has to be followed by you. You can see the waste in your process, since you know the process better than anyone else. You have lived with the waste and have been anxious to remove it. Now is your chance. This concludes Module 4.