Elimination of wastes

1. Elimination
of wastes
PRESENTED BY:
M U T A H I R A
MBA C SECTION

2. Contents
Waste
Elimination of wastes
Lean operations
Jit
Kanban
conclusion

3. Waste
•Anything that does not have value or does not add value.
•Something customer will not pay for.
•It can be in the form of inputs, outputs, materials, stock etc.
•Why do we need to eliminate waste?
To increase profits
Improve efficiency
Reduce time and cost of production
Generally to improve the what company is running.

4. Types of wastes
1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Over processing
6. Overproduction
7. defects
• The 7 wastes
are the root of
all unprofitable
activity and all
tools of lean
production
should be
focused on
getting rid of
these wastes

5. 1.Transportation waste
•Any material movement from one place to another .
•Unnecessary material or tool/equipment movement.
•Causes
1. Poor root planning
2. Distant suppliers
3. Poor layout
4. Poor production planning
•Elimination
1. Co-location
2. Avoiding unnecessary steps in between process

6. 2.Inventory waste
•Waste that consists of excess inventory above which is needed.
•Excessive raw material inventories and supplies.
•Causes
1. Poor demand forecasting
2. Incapable processes
3. Poor inventory planning and tracking
•Elimination
1. Do not store extra materials
2. Follow FIFO

7. 3.Motion
•Any movement of people which does not contribute to the value of the product.
•Causes
1. Poor layout and housekeeping
2. Disorganized workplace
3. Unclear and non standardized workplace instructions
4. Unclear process and material flow
•Elimination
1. Store tools for immediate use and closer to workplace
2. Deliver items to internal customers as when they want them.

8. 4.Waiting
• Man/machine idle or waiting time
• When a worker cannot proceed with the next task in a process.
•Causes
1. Lack of synchronization
2. Over staffing
3. Long set-up
4. Material/manpower shortage or delay
•Elimination
• Proper availability of materials and manpower
• Well organized process

9. 5.Overprocessing
•Non-value added man and machine processing
•Causes
1. Unclear customer specifications
2. Unclear work instructions
3. Lack of a concurrent design
4. Lack of customer input related to requirements
•Elimination
•Identify value adding and non value adding activities

10. 6.Overproduction
•Producing more than what is needed.
•Producing faster than what is needed.
•Causes
1. High capacity equipment
2. Building products that are not a priority
3. Poor production planning and producing just in case
•Elimination
•Just in time
•Limited production as per customer demand

11. 7.Defects
•Cost due to storing, repairing/ repaired products.
•Includes cost of materials scrapped due to defects.
•Causes
1. Unskilled personnel
2. Unclear customer specifications
3. Incapable suppliers
4. Lack of process control
•Elimination
1. Improve the quality of raw material
2. Skilled personnel.

12. Lean operations
•Derived from Toyotas 1930 operating model “The Toyota Way”.
•Term lean was coined by John Krafcik in 1988 and defined by James Womack and Daniel Jones in 1996.
•Focusses on providing customer satisfaction using few resources.
•Objective:
1. Creating value for customers
2. Eliminating wastes.

13. Lean
principles:

14. Jit
• Jit – just in time
• Manufacturing and production of goods when needed.
• Usually small batches.
• Waste is less
Goals:
• Eliminate disruptions
• Increase efficiency and decrease waste by on time production
• No excess inventory
Example:
Car manufacturers

15. KANBAN

16. • When constructed, managed and functioning
properly, serves as areal time information.
• Principles:
1. Start with what you know
2. Agree to pursue incremental,
evolutionary changes
3. Respect the current process roles and
responsibilities
4. Encourage acts of leadership at all
levels.

17. CONCLUSION
Waste is anything that does not add value or does not have value so it is needed to be eliminated.
There are 7 types of wastes.
These lead to inefficiency of production system and increases cost and labor.
Lean operations has two main objectives: creating value for customers and eliminating wastes.
Just in time is used to increase efficiency and decrease wastes by producing on time and demand.
KANBAN allows to see the work in progress and identifies when and where workflow blockages happen

18. Thank you