This document discusses Lean management concepts. It defines Lean as a systematic approach to continuously eliminate waste within a process. It outlines the five Lean principles of identifying value, mapping the value stream, establishing a pull system, creating flow, and seeking perfection. It then describes the eight types of waste in Lean - defects, overproduction, waiting, non-utilized talent, extra processing, motion, inventory, and transportation. The document provides examples and causes of each type of waste. It aims to help organizations understand and apply Lean strategies to improve processes and eliminate waste.

1. www.zulfadev.com
© 2015 Zulfa Managment
Consulting. All Rights Reserved.
Zulfa Management Consulting
To get closer …
www.zulfadev.com
@zulfateam @zulfateam
support@zulfadev.com+966 59 084 2622
Hussain Yasin Al-Ahmed
Management Consultant
@hussain_alahmed
@hyahmed
hussain@zulfadev.com

2. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. Formula 1 Pit-Stop
Movie Time

7. www.zulfadev.com
© 2015 Zulfa Managment
Consulting. All Rights Reserved.
7

8. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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. www.zulfadev.com
© 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

22. Our goal is to help you achieve yours.
We strongly believe in supporting local
communities and charities. We are committed to
providing help anyway we can.
Zulfa Management Consulting
www.zulfadev.com
@zulfa.team @zulfateam
hussain@zulfadev.com+966 59 084 2622
Let us hear from you …