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Waste management
Waste in business can take many forms and comes from inefficient processes, activities, and lack of customer focus. The document defines waste as any activity or process that adds costs but no value. It discusses the seven main types of waste - transportation, inventory, motion, waiting, overprocessing, overproduction, and defects. These wastes were pioneered by Taiichi Ohno and can be remembered using the mnemonic "TIM WOOD". Eliminating waste from business processes improves efficiency and reduces costs.
Waste management
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- 2. Overview • Definition ofwaste • Origination • Types of Waste • Perspective • Conclusion
- 3. The Definition ofwaste What does waste mean to business? It is tempting to want to define waste from the view of manufacturing to encompass all of business waste. A definition of waste is any product from the business that does not provide value for the business. It is a good definition, however, it has a narrow spectrum… Waste is any activity or process that adds costs but adds no value (for the customer).
- 4. Origination Waste from theprocesses, activities and customer-centric perspective was pioneered by Taiichi Ohno(1912 - 1990); a Japanese industrial engineer considered the father of Toyota Production System. He Identified waste which he called “muda” as being of seven types.
- 5. Types of Waste •The seven most common types of waste can be remembered using the mnemonic “TIM WOOD”. • T - Transport • I - Inventory • M - Motion • W - Waiting • O - Over-processing • O - Overproduction • D - Defects
- 6. Types of Waste •Transportation adds time to the process without increasing value, and creates an opportunity for damage to occur. • "The Unnecessary Movement of Materials or Documentation“ Examples are moving paper work over distances to be signed, plant layout that encourages undue movement of forklift, Multiple hand- offs of electronic data. Approvals etc.
- 7. Types of Waste •'just in case inventory‘ i.e. purchasing or making things before they are needed which ties up cash and requires additional storage facilities. • Excess storage can cause stock damage, and materials can degrade in store. • “Any stock that is Not Required for Customer Orders“ Examples include Unread email, excess office supplies, stored items not currently in use and employees that have skill that are not being used to their fullest
- 8. Types of Waste •Motion takes time and adds no value. Work spaces that are not ergonomic lead to a waste of motion, such as stretching, twisting, bending etc. • "The Movement of People Within the Workspace“ • All kind of unnecessary motion is being caused by poor working standard practices, poor (not optimal) process design or work area layout. • Examples are walking between offices, Central filing system or just when one has to get up and walk or travel to get something to do their job.
- 9. Types of Waste •When a resource(employees, customer, material, or equipment) is sitting idle or waiting. • Waiting constricts smooth flow; it interrupts the work rhythm. • "Defer an Action for a Time Until an Event Occurs“ • Examples are; Delays in getting approvals, waiting for raw materials and parts.
- 10. Types of Waste •Over processing is to do more than is necessary • "Doing More Than needed to Meet the Customer Requirement“ • Examples are; completing two or three inspections, measuring components more than once, relying on inspections, rather than designing the process to eliminate errors Making the job more cumbersome than need be…
- 11. Types of Waste •Overproduction arises when the company is producing more than the customer really requires. • "Producing More than is Required“ • Over-production is generally regarded as the worst type of waste. A process that continues when its output is not required causes excess inventory, and so leads to all the other wastes. Examples are; making to plan rather than to order, Filling in more fields on a form that are needed, entering the same data twice, producing reports no one needs
- 12. Types of Waste •Defect sets in when any additional work is performed on a product or service. • “Right first time avoids scrap and rework“ • Defects are caused by bad manufacturing processes (caused by human or machine errors) • time you redo, rewrite, rework, repair, or scrap something does not add any value. Examples are; Data entry errors, design flaws, employee turnover etc.
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- 14. Conclusion • It isimperative to be able to identify these forms of waste as it pertains to your business and tackle it continuously.