7 WASTES Click here to see this complete

7 WASTES Click here to see this complete module at six-sigma-material. com Six-Sigma-Material. com ©. All rights reserved. 1

DMAIC APPLICATION – MEASURE PHASE • Accuracy / Bias • Resolution / Linearity / Control • Gage R&R I N P U T S • Customer Requirements (VOC) • Data Collection Plan • OEE • Yield Calculations • Descriptive Statistics • SPC Charting • Pareto Diagram • Fishbone Diagram • Correlation Matrix • FMEA • Brainstorming • Spaghetti Diagram • 7 – Wastes • 5 -WHY MEASUREMENT SYSTEM ANALYSIS BASELINE MEASUREMENTS IDENTIFICATION OF PIV’s (root causes – x’s) ü Standard Operating Procedures ü Measurement Error Quantified ü MSA Validated and Approved ü Data Collected per Sampling Plan ü Process Control Review ü Process Capability (VOP) ü Value Stream Map ü Refined Project Goals ü Refined Financial Estimation ü Narrowed down PIV’s ü Detailed Process Map ü Future State (Ideal) Map ü Wastes Identified ü RPN’s are Known ü Remove Uncontrollable Inputs Six-Sigma-Material. com ©. All rights reserved. 2 O U T P U T S

The Seven Wastes 1. Defects 2. Overproduction 3. Excess Transportation 4. Waiting 5. Inventory 6. Excess Motion 7. Excess Processing Use the acronym “DOTWIMP” as a mnemonic technique There is a #8 that is occasionally taught and it is a source of opportunity in front offices to the factory floor. We will discuss this later. Six-Sigma-Material. com ©. All rights reserved. 3

The Seven Wastes Purpose: A primary objective within Lean Manufacturing and DMAIC projects is to identify waste and eliminate it. This module intends to teach people to “see” wastes that are more obvious and seek out the hidden factory wastes. These wastes can contribute to degradation in 5 S and increase safety risks among lost profits and possibly revenue and working capital. Another form of waste that can be incorporated into this exercise is the waste and underutilization of human resources and talent. Misalignment of employee time impedes getting the best results. This can also lead to lower morale and lower job satisfaction. Think of it as the…. . “human being OEE” Six-Sigma-Material. com ©. All rights reserved. 4

The Seven Wastes Waste occurs in very obvious forms to others that are not obvious. A team is expected to evaluate each form of waste as they develop process maps and begin to look for improvements. Waste can occur within: 1. Services 2. Products 3. Transactional processes Waste can occur within flows of: 1. People 2. Information 3. Products Six-Sigma-Material. com ©. All rights reserved. 5

The Seven Wastes 1) OVERPRODUCTION The reason this one is discussed first in detail, is because it is the riskiest (and often the most costly) form of waste, since the other waste also happen within it. Overproduction can have defects, create more transportation, waiting, etc. This means building an excess quantity of units or more than the customer needs or is willing to pay for. This could be due to long set-up times, very long lead times, and difficulties known at start-up. This is often done to cover an underlying problem. In terms of a service, this is the same as doing more than is required or that the customer is willing to pay for. s to control. Six-Sigma-Material. com ©. All rights reserved. 6

The Seven Wastes 2) DEFECTS For very obvious reasons, making the product right the first time is ideal and any product that is defective, due to one or more defects, is an opportunity to reduce costs and lead time. Defects are products or services that do not meet the customer specification. Defects always require some degree of additional attention, whether it they are tracked, scrapped, reworked, or repaired. These options may result in more waste or others of the seven wastes. Remember to consider all the paperwork, confusion, and delays that might have been associated with the scrap or rework. to control. Handling defects can create more transportation, waiting, and some other forms of waste. Six-Sigma-Material. com ©. All rights reserved. 7

The Seven Wastes 3) EXCESS TRANSPORTATION Manually moving stock to a staging area and dropping off material and picking it back up to deliver to machine. The goal is to minimize the transportation and people involved in moving material. Transportation waste should be evaluated in the office and manufacturing floor. Sometimes it is electronic waste in the corporate environment. Review transportation waste of any materials (direct or indirect). Transportation wastes add costs, lead time, and risk of getting damaged or misplaced. Six-Sigma-Material. com ©. All rights reserved. 8

The Seven Wastes 4) WAITING Downtime waiting for parts, components, raw materials, approvals, the previous operation down in a cell, and paperwork. A machine could be waiting for next job, because the current job is being overproduced. It could be the part is waiting for something or the people involved are waiting. Once again, waiting can be a waste that occurs in a transaction too, such as waiting for a requisition to be approved, or a purchase order, or a project that requires a sequence of approvals. Six-Sigma-Material. com ©. All rights reserved. 9

The Seven Wastes 5) INVENTORY Not all inventory is "bad" inventory. A properly sized Kanban or plan for each unit will dictate the appropriate amounts of inventory at each phase of a value stream. Moreover, the Kanban mins and max levels should be dynamic and adjust as conditions change. It should be capable of looking forward for potential outliers and using historical performance. Of course, if a business model exist where all inventory is prepaid by customer and “none” is tied up as working capital, then that is an ideal state. Most often, this isn’t possible. Parts on hand that customer has not purchased yet due to cycle time and lead time. Buffer stock used to offset variation in demand production. Excess inventory ties up cash, creates extra handling, storage, and may never be recovered. This is a critical metric towards improving working capital. Six-Sigma-Material. com ©. All rights reserved. 10

The Seven Wastes 6) MOTION Excess motion to adjust a machine, frame a house, make a sandwich, that could be eliminated by rearranging layout, tools, and personnel. The motion may cause unnecessary fatigue and long term injury. Proper ergonomics should be applied when making adjustment to motion studies. Only have the necessary tools, materials, paperwork at the operator workstation. The less an item is needed, the further away it should be. A term commonly used is POU - Point Of Use shadowboards and other ideas to keep most frequent needed items at the operator point of use. This applies for desk jobs, machine operators, supervisors, and at home. Six-Sigma-Material. com ©. All rights reserved. 11

The Seven Wastes 7) EXCESS PROCESSING This is different than the waste of Overproduction. This includes waste such as over polishing parts, excessing painting, heating parts too long or too high of temperature, excessive washing, redundant paperwork, excessive data collection, tumbling, turning, drying parts longer than necessary. Sometimes this opportunity is less obvious. Your team may find that is can reduce the production of a part from multiple machines to one machine, such as putting two components on at the same time, or redesigning tooling to create more complex stamping in one cycle. The lack of integrated systems, lack of creative and innovative spreadsheets, conditional formatting, validation, filtering, can all lead to over-processing when performing data entry or other clerical and office jobs. Six-Sigma-Material. com ©. All rights reserved. 12

The Seven Wastes Use the 7 -Wastes thought process when making improvements to the process map to help achieve the ideal state. Each of them are rather obvious when studied individually however it is easier said than done which refers to actually "seeing" the waste, identifying it, and eliminating it (or mitigate). Before the GEMBA walk, creating the process map, or a value stream map, teach the team members about the seven wastes. Teach them to “see” the waste and moreover, dig deeper to find the hidden factory wastes. More effective training will include creative examples in their workplace that are not as obvious. Often, this training comes across as common sense but if you can surprise them with examples, then the engagement should strengthen. Six-Sigma-Material. com ©. All rights reserved. 13

The Seven Wastes Sometimes the waste is less obvious, found by accident, or may seem out of scope. The team may be following a product during a value stream mapping exercise and notice potential improvements such as: • • Lighting that can be converted to more efficient LED’s, A washer is spraying water when there are not any parts in it, A dryer is blowing hot air when there are not any parts in it, Warm air from machines, furnaces, or air compressors is being vented outside when it could possibly be reclaimed and used to heat a building or working space, Gravity that isn’t being utilized as a free energy source when it could be to help the flow of parts or components. Tools and Dies that aren’t completely used or that can be reworked Air compressor and dryer piping inefficiencies Perhaps some of these are not x’s (inputs) that contribute directly to solving the gap in the Project “Y”, but many could be downstream inputs. In any case, the company will likely appreciate any waste identification that can be eliminated. Six-Sigma-Material. com ©. All rights reserved. 14

The Seven Wastes – REFERENCE GUIDE 1. Defects 2. Overproduction (often the most severe) 3. Excess Transportation 4. Waiting 5. Inventory 6. Excess Motion 7. Excess Processing Use the acronym “DOTWIMP” as a mnemonic technique 8. Underutilization and misalignment of human resources time and talent. Six-Sigma-Material. com ©. All rights reserved. 15