Lean methodologies look forward to reducing eight wastes or non-value-added activities in order to be more efficient in serving the end customer. Elimination or reduction of them can result in savings for your business by more than 50%. You will learn to identify and reduce the 8 wastes that impact your profit.

1. Dealing with the
8 DEADLY WASTES
that impact your
profit

2. Webinar outcomes
Through this webinar you will:
 Understand the learning path for a quality management professional
 Learn to identify wastes or non-value-added activities that impact your profit
 Know the nature of waste in your business processes
 Reduce the 8 main type of wastes in order to be more efficient in serving the
end customer
 Understand that eliminating waste is the foundation of lean thinking

3. Speaker: Luciana Paulise
1. Business consultant and founder of Biztorming
Training & Consulting
2. MBA from CEMA University, a top-ranked institution
at Buenos Aires, Argentina
3. Quality Engineer certified by the American Society
of Quality (ASQ)
4. Participated as an examiner for the National Quality
Award in Argentina and the Team Excellence Award
5. Influential Voice for the ASQ (US). Speaker and
Author
6. Columnist for Infobae (Argentina), Destino Negocio
(Spain) and Somos Pymes (Argentina)
7. In 2014 received a grant from the Deming Institute to
apply Deming quality management system on small
business in development countries
8. Located in Buenos Aires Argentina
Business consultant and founder of
Biztorming Training & Consulting

4. Webinar Agenda
• Introduction to Lean
• Introduction to Waste
• The 8 Wastes
• Next Steps
• Wrap up Session

5. Introduction to Lean

6. What is Lean?
Lean methodologies look forward to reducing eight
wastes or non-value-added activities in order to be more
efficient in serving the end customer.
Elimination or reduction of them can result in savings for
your business by more than 50%.

7. Steps of Lean Thinking
Identify Value from
the customer’s
perspective
Map the Value
Stream and get
rid of waste
Make the value
creating steps
Flow continuously
Let customers Pull
the product
Seek Perfection
- what are the true value adding activities?
- make waste visible (5S)
- use standard operating procedures (SOPs)
- make performance visible (Visual Factory)
- eliminate other wastes (8
Wastes)
- minimize non-value adding
steps (COPQ)
- use continuous improvement
(Kaizen) to get value to flow
faster and to completely
eliminate Muda
- no one produces a product until
the customer asks for it
- throw out
forecasting
- eliminate batch-and-queue
- everything works or nothing
works
- ignore traditional boundaries

8. Lean tools
Seek Perfection
Identify the value stream
and Eliminate Waste
Standardize and visualize
customer value
Create Flow
Allow customers to Pull

9. Introduction to Waste

10. Waste Definition
Any activity that consumes resources but creates no
value.
Waste in our work place (and elsewhere) becomes
so familiar that we fail to see it for what it is

11. “We look at it, but we do not see it.”
Lao-Tzu, sixth century BC

12. Inspect
Rework
Scrap
Process
Hidden Factory
How much
inspection,
rework and
scrap?
Product
to
customer
High
yield
High Yield Does Not Always Equal Low COPQ

13. Visible Costs are only the Tip of the Iceberg!
Scrap
Rework and sorting
Rejects Warranty claims
Maintenance and service
Additional labor hours
Materials Obsolescence
Quality engineering and
administration
Inspection/test (materials, equipment, labor)
Expediting
Cost to customer
Excess inventory
Longer cycle timesQuality audits
Supplier control
Lost customer loyalty
Improvement program costs
Process control
Opportunity cost if sales
greater than plant capacity
Cost to supply chain

14. Required
Waste, 30%
Value
Added
Work, 20%
Pure Waste,
50%
Typical Waste Distribution
Based on: The Quality Secret, Conway

15. The 8 Wastes

16. Eight Wastes
D • Defects
O • Overproduction
W • Waiting
N • Non-value added processing
T • Transportation
I • Inventory
M • Motion Waste
E • Employees unutilized skills

17. Quality
Defects
Making defective products
that have to be reworked,
repaired or scrapped
Customer complaints and
returns
Scrapping a report and
starting over
Incomplete information
Multiple information
systems that do not
communicate

18. People
Over-processing
Performing activities that add
no value to the product or
service from the customer’s
perspective
Unnecessary inspection
Excess data generation
Excess sign-off or
approvals
Too much detail in
reports
Gold-plating product
Rework or repair of
machines

19. People
Waiting
Idle time before next
processing step
Waiting for ...
data
meetings to start
decisions
prior step to be
completed
equipment

20. People
Motion Waste
Movement of employees and
equipment that does not add
value to product or service
Looking for things
Walking or reaching
Driving to warehouse to
get parts
Retrieving data from files
Searching for information
on computer

21. People
Employee unutilized skills
Not using people’s abilities,
skills, experience to fullest
extent
High administrative
burden for skilled workers
Too much time spent in
meetings vs professional
work
Un-recognized talent

22. Materials
Transportation
Movement of material or data from
one place to another
Move products to other facilities
for next process step
Moving information to another
file or system for additional
processing
Moving data and tasks between
organizations

23. Materials
Inventory
Supply in excess of one-
piece flow through the
process
Extra products on hand
just in case
Extra materials or
supplies
Extra electronic and
paper copies
Jobs in queue waiting

24. Materials
Overproduction
Producing materials or
completing services that
aren’t needed now
Designing but never
making
Unused reports /
documents
Extra copies
Extra products
Extra space

25. The 8 wastes + Tools
Materials
Over-
production
Transportat
ion
Inventory
Just in time
Work
Balancing
Kanban SMED TPM
People
Motion
Waiting
Over-
processing
Ideas
Workplace management
SOP’s 5S 7 quality tools
Quality
Defects
Errors prevention
Visual management Poka-yoke

26. Next steps

27. Exercise: Identifying Waste
Individual exercise
Time Required: 15 minutes
Instructions:
1. Using your process map, identify examples of each of the
8 Wastes.
2. Categorize the three top wastes that exist.
3. What prevents you/your business unit from addressing
these wastes?

28. Identify 1
example of each
of the waste
types
Possible Cause Proposed Action
How will we know
we were
successful?
Overproduction
Inventory
Waiting
Defects
Transportation
Motion
Over-Processing
Employee unutilized
skills
Exercise: Identifying Waste

29. Any Questions?

30. Luciana Paulise
CEO Biztorming