The document discusses the different types of waste that can occur in production processes. It defines waste as anything other than the essential activities needed to add value for the customer. The seven main types of waste are identified as overproduction, wait time, transportation, processing, motion/movement, inventory, and defects. For each type of waste, examples are provided as well as the typical causes and consequences of that waste. The goal is to identify and eliminate non-value-added activities to improve production efficiency.

1. WASTE IN
PRODUCTION

2.  Waste: Anything other than the exact
amount of
equipment, materials, parts, space, and
workers' efforts that are absolutely essential to
add value to a product.
 This is: Everything that increases production
costs without adding value to what is being
produced.
 Value-Added: Anything that the customer
wants and is willing to pay for it.
 Non-Value-Added: Anything that the
customer doesn't wants and won’t pay for it.

3. Types of Waste in Production
1. Overproduction.
2. Wait Time.
3. Transportation waste.
4. Processing waste.
5. Motion/Movement waste.
6. Inventory waste.
7. Defects waste.

4. Overproduction
 Producing more products than is needed,
faster than needed or before they are needed is
a waste.
 Adding extra units to the quantity needed “just in
case” or building to a pre-defined lot or batch size
is also wasteful.

5. Consequences of Over-
Production
 Loss of Production Control.
 Fixing rejects becomes a low priority.
 Increased Mix-ups, mistakes and confusion.
 Valuable time and resources consumed
(wasted) building products that are not a
priority.

6. Overproduction Causes
 Poor Planning Process.
 “Just-in-case” instead of “Just-in-time” production.
 Poor communications between departments.
 Low Capability Processes, that are unable of
producing the quantity and/or quality required in a
consistent basis.
 Prolonged setup and cycle times.
 Sub-optimization caused by local optimization
(Processes that benefits a single department’s
interests against the organization’s interests).
 Low equipment reliability.

7. Wait Time
 Wait time waste occurs when a worker cannot
proceed with the next task in a process.
 There are workers waiting and doing nothing
(wasting their time or making others waste theirs)
while others workload is excessive.

8. Wait Time causes
 Lack of an adequate maintenance.
 Need of proper tools or materials.
 Lengthy setup times.
 Lack of cross training.
 Lack of SOP or undocumented work methods.
 Production bottle necks.
 Irregular distribution of training.

9. Consequences of Wait Time
waste
 Personnel that cost doing nothing (adding no
value).
 Delays that lead to overtime to conclude what was
programmed.
 Costs due to inefficient processes that exceed the
standard costs.
 Loss of motivation; Low morale.

10. Transportation Waste
 Any material movement that does not
directly support immediate production.
 When product is transported to a place other
than the next process location or, the next
process is not located adjacent to the current
one.

11. Examples of Transportation
waste
 Units are parked off the production floor to gather
a “full lot” for a batch operation.
 Production Lots that are sent off to the other side
of the plant for the next process step.
 This can occur, either between operations or
within an operation where workstations are not
properly laid off.
 Containers that are too big and difficult to open or
close.
 Excess of material handling equipment. Lift-trucks
that travel empty.

12. Transportation waste causes
 Improper Facility Layout
 Large buffers .
 Large lot purchasing or processing.
 Poor production planning.
 Poor scheduling.
 Poor work place organization.

13. Processing waste
 Any unnecessary step, either production or
communication, that adds no value to a
product or service.
 Occurs when we execute an operations, and
the customer is not willing to pay for what is
being done.

14. Processing waste causes
 Lack of a concurrent design.
 Processes poorly documented (Lack of
SOP’s).
 Lack of customer input concerning
requirements.
 Poor configuration control.
 Quality Standards not related to customer
needs.
 Redundant inspections and approvals.

15. Consequences of Processing
waste
 Time spent building a feature that is irrelevant
to the customer and that the customer will not
pay for.
 Additional costs for materials used in excess.
 Lack of control because improper use of
design documents.
 Products that either, exceed the requirements
of the customer or fail to comply with them.

16. Motion/Movement waste
 Anymovement of people which does not
contribute to add value to the product or
service.
 Persons moving from one place to another
create a false impression of being working,
while in reality, are doing nothing. They are
costing while adding no value.

17. Consequences of
Motion/Movement waste
 Employees move from one workstation to
another, doing nothing.
 They are unnecessary trips.
 No value is added during this process.
 Include time spent looking for parts, tools,
fixtures, etc.
 Include time spent going to/froma warehouse.

18. Motion/Movement waste
Causes
 Ineffective Layouts (equipment, office and
plant).
 Lack of Visual controls.
 Poor Process Documentation.
 Poor work place organization.

19. Inventory waste
 Any supply (Materials or Goods) in excess of
what is required to deliver products in a Just-
In-Time manner.
 These parts will need to be
processed, moved, counted, stored, etc. Will add
to costs and can not be shipped to our customers.

20. Inventory waste causes
 Poor sales forecasting (Demand Forecasting).
 Long lead times (set-up and cycle times).
 Poor inventory planning.
 Poor inventory tracking.
 Unbalanced production processes.
 Processes that can not produce the required
quantity or quality of products in a consistent
manner.
 Suppliers that can not supply the required quantity
or quality of products in a consistent manner.

21. Consequences of Inventory
waste
 Large lot purchases of raw materials, only to
be stored for weeks or months.
 Very large WIP’s inventories.
 Low inventory turnover. Need of large working
capital to finance inventories.
 Damaged Products.
 Obsolete products.

22. Defects waste
 Costs due to sorting, repairing and/or repairing
products.
 Include cost of materials scrapped due to defects.
 Also consist in the cost of goods returned by
customers, recall campaigns.
 Recycling part of the products is also a waste.

23. Defects waste causes
 Too many product models.
 High inventory levels.
 Inadequate tools/equipment.
 Poor employee training.
 Poor layouts.
 Unnecessary handling.
 Poor process documentation.
 Processes that can not produce the required quantity
or quality of products in a consistent manner.
 Suppliers that can not supply the required quantity or
quality of products in a consistent manner.

24. Consequences of Defects
waste
 Excessive processing costs.
 Many additional non-value-added processes
or operations.
 Additional quality control inspections needed.
 Damaged relations with customers.