The 7 Wastes What is Waste Anything which

The 7 Wastes

What is Waste? Anything which does not add value To understand waste you must first define what adds value

Value Definition… Value Added - VA Any process that changes the Fit, Form or Function of Maximise the product, in line with customer requirements. Essential Non-Value Added - ENVA Unavoidable with current technology or methods. Any work carried out that does not increase value. Minimise Waste - NVA All other meaningless, non-essential activities that do Eliminate not add value you can try to eliminate immediately.

Typical Business… 100% 80% 60% 40% 20% 96% Waste/Potential Added Value Actual 4% Nissan 7%

Lean Focus Process Efficiency Traditional Focus Work Longer-Harder-Faster Add People or Equipment VA NVA Flow Efficiency Lean Eliminate Waste

Activity What does lean Mean to you?

Divisions of Work Waste; all unnecessary work (Eliminate) Value Added; any work which changes the nature, shape or characteristics of the product or service in line with customer requirements (Maximise) Non Value Added; any work which is necessary under the current conditions, but does not add value to the product or service. (Minimise)

Pens R Us

The 7 Wastes § He’s not a likeable character § He’s in every business § He’s stealing from under your nose We will call him………TIMWOOD Or Better Known As THE 7 WASTES Apologies if your name is Tim(other) Wood, so to protect the innocent, none of the following material will bare any resemblance in character , name or nature to anyone who’s name is Tim(othy) Wood. If your name is Tim(othy) Wood, no loyalty fees whatsoever will be granted for the use of your name)

The 7 Wastes Transportation I Movement of materials, parts, or finished products M W O O D TRANSPORTATION

Transportation Unnecessary movement of information or material Unnecessary movement ofand information or material between people, processes organisations. people, processes and organisations. Benefits of reducing Characteristics; transportation; Reduced cost of handling equipment Can be caused by Benefits of reducing Characteristics; Less traffic and movement of excessive inventory, poor transportation; resources Reduced and inappropriate cost of handling equipment Canlayout be caused by Reduced risk secondary (handling of positions for resources Lessoftraffic and movement excessive inventory, poor i. e. damage). resources people, materials, tools layout and inappropriate Reduced risk of secondary (handling positions for resources i. e. damage). people, materials, tools. Examples; § § § Excessive information distribution. Excessive information Passing data through adistribution. team that adds little or no value. Passing data through team that adds no value. Physical movement of adocuments ratherlittle thanorelectronic Physical movement Poor team locations. of documents rather than electronic Poor teamdelivered locations. Materials into depots when straight to site is Materials delivered into depots when straight to site is possible.

The 7 Wastes Transportation Inventory Storage of materials, parts, or finished products M W O O D

Inventory A build-up of information or material that is not being used or is waiting to be worked on (more than required toof maintain flow). Benefits reducing inventory; Characteristics; Less. Benefits money tied (increased cash flow) Large stocks of work in ofup reducing inventory; Characteristics; progress and raw materials Large stocks of work in in work areas and stores. progress and raw materials Work areas cluttered with in work areas and stores. material or information Work areas cluttered with material or information. Less floor space and storage equipment Less money tied up (increased cash flow). required Less floor space and storage equipment Less material control and handling required Quicker discovery of problems and Less material control and handling. response to customer demand Quicker discovery of problems and Examples; response to customer demand. Examples; § Information awaiting additional information or decisions before it can be used. § Outdated or even obsolete materials and information. § Unauthorised documents.

The 7 Wastes Transportation Inventory Movement of people Motion W O O D

Motion Non-value added human movement (physical or or Non-value added human movement (physical mental). Benefits of eliminating operator Characteristics; motion; Characteristics; Benefits of eliminating operator Better operator care Excessive stretching or motion; Less work related care injuries Better operator walking for tools or More working Less productive work related injuries information environment More productive working Often caused by a badly environment organised work environment Examples; Too many and over lapping Examples; Having to continually switch mindset activities within a short oneto setcontinually of issues to another. Having switch mindset period of time § from Failing to retain knowledge, from one set ofrelevant issues to another. § having Failingtotore-learn. retain relevant knowledge, Travelling meeting. having totore-learn. having to tools available. § Not Travelling meeting. § Not having tools available.

The 7 Wastes Transportation Inventory People waiting for parts or machines otion M Waiting O O D

Waiting People or processes are waiting due to unavailable information, decisions or materials. Characteristics; Tends to happen with there is a poor balance of workload. Variation in process times. Uncoordinated processes and activities. Often linked to inventory Benefits of reducing waiting; Better utilisation of facilities. Adds pull processes. Less operator boredom. Examples; Waiting on other processes / activities. Waiting for slipped up-stream activities Having to stop to find answers to questions. Waiting for approval / authorisation.

The 7 Wastes Transportation Inventory More or earlier than required by the customer Motion Waiting Overproduction O D

Over Production Producing more or earlier than the next process needs. Characteristics; Making batches/information larger than the customer needs. Making product ahead of schedule. Benefits of eliminating over production; Prevents ‘manufacturing at risk’ ahead of customer schedule. Saves money. Uncovers the real problems in processes. Examples; Two or more people separately making the same document. Producing unnecessary documentation. Over reporting. Same jobs in a number of Work-Banks.

The 7 Wastes Transportation Inventory Motion Waiting Overproduction O verprocessing D Higher quality than required by the customers specification Spec: Galvanised hinge

Over Processing Doing unnecessary work on task’s not adding value to that piece of work. Characteristics; Over complicated processes. Unnecessary processes. Over engineered or designed. Benefits of eliminating process waste. Saves cost of producing unnecessary operations. Improved flow through the processes. Increased capacity Examples; Unnecessary reviews. Re-inventing the wheel over and over again. Re-formating or packaging data that does not add value. Gold-platting thinking.

The 7 Wastes Transportation Inventory Motion Waiting Overproduction O verprocessing Defects Scrap or defective products and Inspection

Defects Errors or mistakes causing the effort to be redone to correct the problem. Characteristics; Benefits of eliminating mistakes; Improved customer satisfaction. Large containers for Reduced costs of materials. collecting reject or Improved capacity and ability to meet defective materials. project schedules. Low confidence in project schedules. Examples; Re-producing reports. Design defects picked up late in the engineering life cycle. Poor / ambiguous customer requirements leading to re-work. Incorrect status reporting resulting in complacency or un-required fire

The 8 th Waste !!! § Under-utilised People § Not listening to people § Not using skills § Not using knowledge Saying people are the most important asset is an understatement.

Questions