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The 8 waste in Lean Manufacturing - Lean Six Sigma Training

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Waste is any step or action in a process that is not required to complete a process (called “Non Value-Adding”) successfully. When Waste is removed, only the steps that are required (called “Value-Adding”) to deliver a satisfactory product or service to the customer remain in the process.

In any business, the greatest enemy of profitability is waste-- typically of time or money. In lean manufacturing, waste is any expense or effort that is put forward which does not transform raw materials into an item the customer is willing to pay for. There are 8 types of waste in Lean Manufacturing. Seven of the eight wastes are production process oriented, while the eighth waste is directly related to management’s ability to utilize personnel.

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The 8 waste in Lean Manufacturing - Lean Six Sigma Training

  1. 1. Mail us: businessconsulting007@gmail.com
  2. 2. The 8 Wastes Lean Six Sigma Training ANKIT SHARMA Trainer
  3. 3. What is Waste
  4. 4. Lean =Systematically Eliminating the Waste VALUE ADDED Non-Value Added • Overproduction • Inventory • Waiting • Motion • Transportation • Defects • Extra Processing • Underutilized People Typically 95% of time the product is within the plant is non- value added 8 WASTES
  5. 5. What is Waste  Process owners are always looking for ways to prevent waste. Waste is an action or a step in a process that does not add value for the customer.  There are eight major types of waste, and any one of them could cause you to lose both efficiency and money.  The word “Lean” is originated in 1940's, when Toyota used the lean techniques within its manufacturing environment.  Taiichi Ohno, a Japanese industrial engineer, started his career working with Toyoda Spinning and with Toyota Motors later in his career, he rose through the ranks within the organization.  According to Ohno, Lean approach is a step by step reduction of waste (called "Muda" in Japanese). There were initially 8 types of lean wastes.  Identifying and removing them is the key to delivering value to the customers.
  6. 6. The 8 Wastes - DOWNTIME
  7. 7. Restaurant – 8 Wastes
  8. 8. Defects One of the most easily recognizable wastes in lean manufacturing is the production of Defects. Examples of Defects in manufacturing include waste such as scrap parts, products that require rework, or assemblies that are missing details. Defects are often considered to be one of the most significant manufacturing wastes because they can actually lead to the generation of additional wastes such as Overproduction, Transportation, and Excess Processing. Some causes: •Poor quality controls •Poor repair •Poor documentation •Lack of standards •Weak or missing processes •Misunderstanding customer needs •Uncontrolled inventory levels •Poor design and undocumented design changes
  9. 9. Overproduction Of all the 8 wastes, Overproduction has, by far, the most negative impact on success. Overproduction occurs any time more parts or products are produced than the customer is willing to purchase. Like the production of Defects and subsequent Excess Processing, Overproduction can also lead to the generation of additional lean manufacturing wastes such as Waiting, Inventory, and Motion, consuming vast amounts of time and resources Overproduction may occur due to: •Just-in-case production •Unclear customer needs •Producing to a forecast •Long set-up times •Engineering changes •Poorly applied automation
  10. 10. Waiting Waiting is a reference to inaction that adds cost to a product being produced for a customer. This occurs because overhead costs continue to increase during the time the product waits to be transformed. When product waits, no value is being produced but the cost of overhead operations continues to grow, which strips potential profit from the sale. Waiting not only destroys material and information flow, but also generates excess Inventory. Causes can include: •Unbalanced workloads •Unplanned downtime •Long set-up times •Producing to a forecast •Insufficient staffing •Work absences •Poor process quality •Poor communication
  11. 11. Non-Utilized Talent The only lean manufacturing waste that is not manufacturing-process specific, but rather manufacturing management related, is Non-Utilized Talent. This type of manufacturing waste occurs when management in a manufacturing environment fails to ensure that all of their potential employee talent is being utilized. This can typically be seen with: •Assigning staff to wrong tasks •Wasteful admin tasks •Poor communication •Lack of teamwork •Poor management •Insufficient training
  12. 12. Transportation Waste caused by moving things around. This is less of a problem in a business office than in a manufacturing plant, since most of what white collar workers "transport" can be sent by email for example. Otherwise, too much transportation tends to increase costs, wastes time, increases the likelihood of product damage and deterioration, and can result in poor communication. In general, transportation waste can be caused by: •Poor plant/office layout •Unnecessary or excessive steps in the process •Misaligned process flow •Poorly-designed systems
  13. 13. Inventory Inventory is a manufacturing waste because it is value that is being held at a cost. In the most literal sense, Inventory is valuable product or material that is waiting either to be sold to the customer or further transformed into something of greater value. The entire time a product sits in Inventory, its profit margin is reduced because overhead must be paid to maintain the product in Inventory. Maintaining Inventory requires the addition of Motion and Transportation wastes. •Overproduction and buffers •Poor monitoring systems •Mismatched production speeds •Unreliable suppliers •Long set-up times •Misunderstood customer needs
  14. 14. Motion When Motion occurs, value is not added to a product or material being manufactured. Motion can be either people or machine, but is most often a human resource whose effort and time are being wasted. Inefficient shop floor layouts, and improper equipment can contribute to unnecessary motion. The employee’s efforts are not only being wasted, but Motion can also result in physical injury to employees which results in even greater cost to the business. Motion waste is closely related to wasted employee potential, commonly referred to as Non-Utilized Talent. Typical causes include: •Poor process design and controls •Poor workstation/shop layout •Shared tools and machines •Workstation congestion •Isolated and siloed operations •Lack of standards
  15. 15. Extra Processing When products do not conform to a customer’s requirements, the products must be repaired or remanufactured to satisfy the customer’s needs. If the customer’s requirements are not clear, more work may be performed during the creation of the product than is actually required, (such as fine polishing surfaces so they look shiny), even though the customer did not request it. Repairing, remanufacturing, and over processing are examples of lean manufacturing waste referred to as Excess Processing. Examples include: •Excessive reports •Multiple signatures •Re-entering data and duplicated data •Lack of standards •Poor communication •Misunderstanding of the customer's needs •Human error
  16. 16. Once Waste is Identifies • Eliminate • Simplify • Streamline • Minimize
  17. 17. Waste: Before and After
  18. 18. Waste: Before and After
  19. 19. 8 Wastes Check Sheet
  20. 20. 8 Wastes Check Sheet
  21. 21. 8 Wastes Check Sheet
  22. 22. Waste Walk Use the Waste Walk worksheet to identify wastes that you see.