module 4

1. Module 4
Value & Waste

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)

9. Overproduction

10. 3. Waiting for the next process step
D-O-W-N-T-I-M-E (8 Wastes)

11. Waiting

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

17. Inventory

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)

21. Extra Processing

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