The document defines three types of waste in operations: value added work that customers are willing to pay for, non-value added or "hidden" waste that is necessary under current conditions, and obvious waste that is unnecessary. It identifies the seven most common types of obvious waste as overproduction, waiting, transportation, inefficient processes, large inventories, unnecessary operator movements, and defects. The document provides examples and explanations of each type of waste.

1. Waste
Waste Elimination

2. Contents of an Operation
Value Added Work
a ue dded o
The part of the job the customer wants to pay for
Non Value Added or Hidden Waste
Work that does not add value but is necessary under the
t ti diti
current operating conditions
Obvious Waste
Obvious Waste
Work that does not add value and is not necessary
WASTE
The 7 Wastes
2

3. What is Value Added Work?
Work that increases the value of a part.
i th t hi h h th fit f f ti
i.e. that which changes the fit, form or function
forge
e g press forge
roll
point
e.g. press
bend
cut point
heat treat
plate
cut
drill
form plate
glue
assemble
form
weld
paint
….
polish
Maximise these activities
The 7 Wastes
3
Maximise these activities

4. What is Hidden Waste?
Work that does not add value but is necessary
¾ tool changeover
y
under the current operating conditions.
g
¾ inspection
¾ parts handling
p g
¾ unavoidable transportation parts
¾ unwrapping of purchased parts
¾ unwrapping of purchased parts
Minimise these activities
The 7 Wastes
4
Minimise these activities

5. What is Obvious Waste?
Work that does not add value
and is not necessary
Inventory Operator movements
1. Overproduction
and is not necessary.
Transportation
2. Waiting
3. Transportation
Process Defects
4. Process
5. Inventory
Waiting
6. Operator Movements
7. Defects
Overproduction
Eliminate these activities
The 7 Wastes
5
Eliminate these activities

6. 7
7 Wastes - Overproduction
p
1. Making more than the customer needs
a g o e t a t e custo e eeds
¾ Making in large batches
¾ Overrunning an unstable process
¾ To produce more than is required*
¾ To produce before required*
* (by internal or external customer)
* (by internal or external customer)
Overproduction
The 7 Wastes
6

7. 7
7 Wastes - Waiting
g
2. Man or Machine Waiting
a o ac e a t g
¾ Waiting for material
¾ Waiting for maintenance waiting-time
¾ Waiting for tool change
¾ Waiting for quality check
¾ Waiting for next station
¾ Waiting for next station
¾ Waiting for quality checks
¾ Non value added work in cycle
o a ue added o cyc e
¾ Operator inactivity during cycle
¾ Machine inactivity during cycle
The 7 Wastes
7

8. 7
7 Wastes - Transportation
p
3. Material/parts movement Transportation
3 ate a /pa ts o e e t
¾ Unnecessary moving or handling of parts.
¾ Handling equipment moving with no parts.
Transportation
¾ Raw material batch sizes not matching production batch size.
¾ Material stored a long way from point of use.
The 7 Wastes
8

9. 7
7 Wastes - Process
4. Inefficient Process
e c e t ocess
¾ Wrong choice of equipment
¾ Bad definition of customer's needs Process
¾ Useless operations
¾ Excessive movement in process cycle
¾ Too frequent inspections
¾ Too frequent inspections
¾ Excessive set-up or downtime
¾ Slow complicated processes
S o co p cated p ocesses
¾ Useless refinement
¾ Bottlenecks
¾ Unbalanced process
The 7 Wastes
9

10. 7
7 Wastes - Inventory
y
5. Large Stocks
5 a ge Stoc s
¾ Stock pile of finished goods
¾ High WIP
Inventory
¾ High raw materials
¾ Excessive racking and warehouse space
¾ Excessive handling equipment
¾ Excessive handling equipment
Just In Time Just In Case
The 7 Wastes
Just In Time Just In Case
10

11. Types of Waste - Inventory
Inventory conceals problems, makes control difficult and
b th t it f i t
¾ Delays action in dealing with faults
and defects
obscures the opportunity for improvement.
Eliminate rocks
¾ Reduces need to face up to fast tool
changeovers
¾ Conceals imbalance in facility
= solve problems
= eliminate waste
¾ Conceals imbalance in facility
capability
¾ Goods can become damaged or
obsolete
obsolete
¾ Creates unnecessary searching and
movement of materials
C
Machine
breakdown
Supplier
delivery
Long
travelling
t
¾ Conceals excess personnel
¾ Takes up space
Inventory Costs £££ !
parts
The 7 Wastes
Inventory Costs £££ !
11

12. 7
7 Wastes - Operator Movements
6. Useless motion
6 Use ess ot o
¾ Looking for tools, materials etc
¾ Double handling Operator movements
¾ Turning
¾ Bending
¾ Stretching
¾ Stretching
¾ Walking
¾ etc…
etc
The 7 Wastes
12

13. 7
7 Wastes - Defects
7. Less than Perfect Parts
ess t a e ect a ts
¾ Scrap
¾ Rework
Defects
¾ Trimming
¾ Rejects
¾ Recalls
¾ Recalls
¾ Delay due to defects
¾ Transportation due to defects
a spo tat o due to de ects
¾ Re-inspection and sorting
¾ Rework area inside production process
¾ Overtime to meet demand due to poor quality
The 7 Wastes
13

14. What is Obvious Waste?
Work that does not add value
and is not necessary
Inventory Operator movements
1. Overproduction
and is not necessary.
Transportation
2. Waiting
3. Transportation
Process Defects
4. Process
5. Inventory
Waiting
6. Operator Movements
7. Defects
Overproduction
Eliminate these activities
The 7 Wastes
14
Eliminate these activities

15. WASTE ANALYSIS
Event:
Location:
Name:
Date:
WASTE OBSERVED CAUSE
OVERPRODUCTION
ocat o
WAITING
TRANSPORT
INEFFICENT PROCESS
INVENTORY
UNNECESSARY
MOVEMENTS
DEFECT