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PEOPLE
7 Deadly Waste

Motion
Extra
Processing

Y

Over-production
Inventory
Extra Processing
Motion
Rework (Defects)
Waiting
Transportation

IT
AL
QU

-

Rework

Waiting

TYPES
OF
WASTE

Inventory

OverTransportation Production

T IT Y
UAN
Q

Add NO value - Only serve to raise costs
Waste Exists In Every Process…Eliminate It
Waste 1  Over-Production
Causes

Working on the
wrong priority work

Producing more than the
customer or next process needs

Creating reports no
one reads

Effects

Takes up floor /
disk space

Builds inventory
not needed

Hides other process
problems (bad quality,
poor delivery)

Produce or order only what, when and in the quantity needed
Waste 2  Inventory
Causes

Populating hard disk
with data

Lots of inventory on shelves,
racks and floors

Effects

Useless Emails in
the Inbox

Inventory Hides Problems

Need extra
resources to
manage

Difficulty in
finding material

Takes valuable
space

Losses due to
damage

Obsolescence

Efficient use of inventory… Not Just-in-Case inventory
Inventory Hides Problems

Less Inventory Exposes Problems
Waste 3  Extra Processing
Causes

Incomplete
Information
supplied

Multiple ways of
doing the same
task

Effects

Creates Delay in
Delivering

Opportunity for
more defects

Eliminate Excess work

Checking /
Rechecking (NonStandardization)
Waste 4  Unnecessary Motion
Causes

Handling
Paperwork

Unnecessasry
Movement of People

Effects
Wasted cycle time

Before

Adds cost

After

Extra Clicks or
key strokes
Waste 5  Rework (Defects)
Causes

Unnecessary
Changes in
Decision

Lack of Clarity
on Requirement

Effects
Consumes resources
in rework

Create Delay in
Delivery

Discourage customer
satisfaction

Adds cost

Escalated impact of initial defect if passed on to next process

Reduce Defects

Incomplete or
incorrect inputs
Waste 6  Waiting
Causes

Waiting for people,
information, etc

Lack of
Coordination

Idle time due to
lack of “Standard”
operations

Effects

Causes bottlenecks

Adds to cycle
time

Slows response to
customer

Increases work
in progress

When Inventory Waits, Customer Waits
Waste 7  Transportation
Causes

Taking files to
another person

Excessive Emails

Effects
Adds cost

Adds to cycle time

Consumes valuable resources

Movement of things
Waiting
Searching

Correcting
Reworking

Re-Checking
Waiting

Time Spent

Waste = 80 %

Time Spent

Value = 20 %
Value vs. Waste

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Identify 7 Wastes

  • 1. PEOPLE 7 Deadly Waste Motion Extra Processing Y Over-production Inventory Extra Processing Motion Rework (Defects) Waiting Transportation IT AL QU - Rework Waiting TYPES OF WASTE Inventory OverTransportation Production T IT Y UAN Q Add NO value - Only serve to raise costs Waste Exists In Every Process…Eliminate It
  • 2. Waste 1  Over-Production Causes Working on the wrong priority work Producing more than the customer or next process needs Creating reports no one reads Effects Takes up floor / disk space Builds inventory not needed Hides other process problems (bad quality, poor delivery) Produce or order only what, when and in the quantity needed
  • 3. Waste 2  Inventory Causes Populating hard disk with data Lots of inventory on shelves, racks and floors Effects Useless Emails in the Inbox Inventory Hides Problems Need extra resources to manage Difficulty in finding material Takes valuable space Losses due to damage Obsolescence Efficient use of inventory… Not Just-in-Case inventory
  • 4. Inventory Hides Problems Less Inventory Exposes Problems
  • 5. Waste 3  Extra Processing Causes Incomplete Information supplied Multiple ways of doing the same task Effects Creates Delay in Delivering Opportunity for more defects Eliminate Excess work Checking / Rechecking (NonStandardization)
  • 6. Waste 4  Unnecessary Motion Causes Handling Paperwork Unnecessasry Movement of People Effects Wasted cycle time Before Adds cost After Extra Clicks or key strokes
  • 7. Waste 5  Rework (Defects) Causes Unnecessary Changes in Decision Lack of Clarity on Requirement Effects Consumes resources in rework Create Delay in Delivery Discourage customer satisfaction Adds cost Escalated impact of initial defect if passed on to next process Reduce Defects Incomplete or incorrect inputs
  • 8. Waste 6  Waiting Causes Waiting for people, information, etc Lack of Coordination Idle time due to lack of “Standard” operations Effects Causes bottlenecks Adds to cycle time Slows response to customer Increases work in progress When Inventory Waits, Customer Waits
  • 9. Waste 7  Transportation Causes Taking files to another person Excessive Emails Effects Adds cost Adds to cycle time Consumes valuable resources Movement of things