Help reducing/removing Waste
Waste is defined by Fujio Cho of Toyota as "anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product."
Different types of waste have been defined:
Notice that the first letter of each line (an acrostic) forms the mnemonic (memory cue): DOWN TIME.
- Defects: A defect is a product that is declared unfit for use. This requires the product to either be scrapped or reworked, costing the company time and money. Examples include a product that is scratched during the production process and incorrect assembly of a product due to unclear instruction.
- Over-Production: Over-production refers to product that is made in excess or made before it is needed. Products should be produced as they are needed following the 'Just-in-time' manufacturing philosophy in Lean. Examples include creating unnecessary reports and overproduction of a product before a customer has requested it.
- Waiting: Waiting involves delays in process steps and is split into two different categories: waiting for material and equipment and idle equipment. Examples include waiting for authorization from a superior, waiting for an email response, waiting for material delivery, and slow or faulty equipment.
- Non-Utilized Talent: Non-Utilized Talent refers to the waste of human potential and skill and is the newest addition to the eight wastes. The main cause of this waste is when management is segregated from employees. When this occurs, employees are not given the opportunity to provide feedback and recommendations to managers in order to improve the process flow and production suffers. Examples include poorly trained employees, lack of incentives for employees, and placing employees in jobs or positions that do not utilize all of their knowledge or skill.
- Transportation: Transportation is the unnecessary or excessive movement of materials, product, people, equipment, and tools. Transportation adds no value to the product and can even lead to product damage and defects. Examples include moving product between different functional areas and sending overstocked inventory back to an outlet warehouse.
- Inventory: Inventory refers to an excess in products and materials that aren't yet processed. This is a problem because the product may become obsolete before the customer requires it, storing the inventory costs the company time and money, and the possibility of damage and defects increases over time. Examples include excess finished goods, finished goods that cannot be sold, and broken machines scattered on the manufacturing floor.
- Motion: Motion is unnecessary movement by people. Excessive motion wastes time and increases the chance of injury. Examples include walking to get tools, reaching for materials, and walking to different parts of the manufacturing floor to complete different tasks.
- Extra-Processing: Extra-processing is doing more work than is required or necessary to complete a task. Examples include double-entering data, unnecessary steps in production, unnecessary product customization, and using higher precision equipment than necessary.
Another way to understand/relate to this simple goal (move the Business closer and closer to ideal/perfect Business) is to recall that you achieve the highest return by investing 100% in the highest return asset. "Continuously/Constantly Improving" processes are an important element of achieving this simple goal.
If your goal is to: "Move your Business closer and closer to the ideal/perfect Business." We can help.