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Identifying Waste on the Shopfloor by Operational Excellence Consulting

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All Lean production methods have the primary intention of improving manufacturing processes to bring increased profits to the manufacturer and increased value and satisfaction to the customer. To increase profits and delight the customer, you have to get rid of waste - all those extraneous and counterproductive assumptions, attitudes, activities, materials, machines, operations and processes.

This presentation can be used to educate your management and staff on how to discover waste on the shopfloor. Identifying waste is the first step towards its elimination. This training material can also be used to supplement your Lean Manufacturing, Gemba Walk, Kaizen, 5S and TPM training.

LEARNING OBJECTIVES:

1. Discover waste in your work environment
2. Learn how to remove waste
3. Learn how to prevent waste

CONTENTS:

1. What is Waste?
What is Value?
What is Value-added?
What is Waste?
How Does Waste Take Root?
Waste Take Root When We Accept Stopgap Improvement
Benefits of Identifying & Eliminating Waste

2. The Classification of Waste
The Three MUs
The 5M + Q + S
The Flow of Goods
The Eight Types of Waste

3. How to Discover Waste
Three Approaches to Discover Waste
Using the Back Door
Bringing Latent Waste to the Surface
Analyzing Current Conditions
Value Stream Mapping
Value-added Flow Chart
Flow Analysis Chart

4. How to Remove Waste
Adopt the Necessary Attitude
Remove Waste in the Movement of Goods
Remove Waste in the Actions of People
Remove Waste in the Way People, Goods and Machines Are Combined

5. How to Prevent Waste
Standardization
Visual Controls
Auditory Controls
5W + 1H

To download this complete presentation, please visit: http://www.oeconsulting.com.sg

Published in: Business

Identifying Waste on the Shopfloor by Operational Excellence Consulting

  1. 1. © Operational Excellence Consulting. All rights reserved. Identifying Waste Discover & Eliminate
  2. 2. © 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.
  3. 3. © Operational Excellence Consulting. All rights reserved. 3 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: http://www.oeconsulting.com.sg
  4. 4. © Operational Excellence Consulting. All rights reserved. 4 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
  5. 5. © Operational Excellence Consulting. All rights reserved. 5 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
  6. 6. © Operational Excellence Consulting. All rights reserved. 6 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
  7. 7. © Operational Excellence Consulting. All rights reserved. “There is nothing so useless as doing efficiently that which should not be done at all.” Peter Drucker
  8. 8. © Operational Excellence Consulting. All rights reserved. 8 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.
  9. 9. © Operational Excellence Consulting. All rights reserved. 9 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
  10. 10. © Operational Excellence Consulting. All rights reserved. 10 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
  11. 11. © Operational Excellence Consulting. All rights reserved. 11 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)
  12. 12. © Operational Excellence Consulting. All rights reserved. 12 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?
  13. 13. © Operational Excellence Consulting. All rights reserved. 13 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
  14. 14. © Operational Excellence Consulting. All rights reserved. 14 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
  15. 15. © Operational Excellence Consulting. All rights reserved. 15 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)
  16. 16. © Operational Excellence Consulting. All rights reserved. 16 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
  17. 17. © Operational Excellence Consulting. All rights reserved. 17 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
  18. 18. © Operational Excellence Consulting. All rights reserved. 18 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
  19. 19. © Operational Excellence Consulting. All rights reserved. 19 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
  20. 20. © Operational Excellence Consulting. All rights reserved. 20 How to Eliminate Overproduction  Line balancing  One-piece flow  Pull production using kanban  Quick-changeover operations  Level-production – small-lot, mixed production
  21. 21. © Operational Excellence Consulting. All rights reserved. “We must always keep in mind that the greatest waste is the waste we don’t see.” Shigeo Shingo
  22. 22. © Operational Excellence Consulting. All rights reserved. 22 Three Approaches to Discover Waste  Using the back door  Bringing latent waste to the surface  Analyzing current conditions
  23. 23. © Operational Excellence Consulting. All rights reserved. 23 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?”
  24. 24. © Operational Excellence Consulting. All rights reserved. 24 • 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
  25. 25. © Operational Excellence Consulting. All rights reserved. 25 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
  26. 26. © Operational Excellence Consulting. All rights reserved. 26 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
  27. 27. © Operational Excellence Consulting. All rights reserved. 27 Standardization  Standards are required for:  Machines  Operations  Defining normal and abnormal conditions  Clerical procedures  Procurement
  28. 28. © Operational Excellence Consulting. All rights reserved. 28 Visual & Auditory Controls  There are six visual and auditory tools you can use:  Red-tagging  Signboards  Outlining  Andons  Kanban  Pitch and inspection buzzers
  29. 29. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  30. 30. © Operational Excellence Consulting. All rights reserved. 30 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.
  31. 31. © Operational Excellence Consulting. All rights reserved. END OF PARTIAL PREVIEW To download this presentation, please visit us at: www.oeconsulting.com.sg

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