8 Wastes of Lean

Presentation on 8 Wastes of Lean with detailed Insights

1. Lean manufacturing is a methodology derived from the Toyota Production System that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity. Lean aims at eliminating the three types of deviations that shows an inefficient allocation of resources.  The three types are  : Muda  ( 無駄 , Waste) Mura  (斑 , Unevenness) &   Muri  ( 無理 , Overburden) Lean Manufacturing I ntegrated sociotechnical approach for process improvement

2. Waste Muda Waste is any action or step in a process that add cost but negates value. Muda takes into account the wastes and aims to integrate each step of production into a holistic, efficient process that reduces costs and improves overall revenue. The original seven wastes (Muda) was developed by Taiichi Ohno , the Chief Engineer at Toyota, as part of the  Toyota Production System  (TPS). The seven wastes are Transportation, Inventory, Motion, Waiting, Overproduction, Over-processing and Defects. They are often referred to by the acronym ‘TIMWOOD’. The 8th waste of non-utilized talent or ‘Skills’ of workers was later introduced in the 1990s when the Toyota Production System was adopted in the w estern w orld . As a result, the 8 wastes are commonly referred to as ‘TIMWOODS’. TAIICHI OHNO 1912-1990

3. WAITING Waste from time spent waiting for the next process step to occur MOTION Wasted time and effort related to unnecessary movements by people INVENTORY Wastes resulting from excess products and materials that aren’t processed TRANSPORT Wasted time, resources & costs when unnecessarily moving products & materials Wastes from making more product than customer’s demand OVERPRODUCTION Waste from a product or service failure to meet customer expectations DEFECT Waste due to underutilization of people’s talents, skills and knowledge SKILL TIMWOODS Mnemonic Wastes related to more wok or higher quality than required by the customer OVERPROCESSING

4. Value Add Analysis Typically less than 5% of what we do is adding value to Useful Work The companies profit lies in the selling price. Less the costs, no matter how one think about the selling price it is very much dictated by the market, not by the company. If a company charge too much, then the customers will go elsewhere, even if you charge too little you may lose customers as they will perceive there may be something wrong with what you are offering. Therefore the only way you have to improve your profits are to reduce your costs, this means removing all elements of waste from your processes. In addition to improving your profits, you will find that waste has a major impact on your customer’s satisfaction with your products and services. Your customers want on time delivery, perfect quality and at the right price. Something that you cannot achieve if you allow the 8 wastes to persist within your processes.

5. Transport MOVING GOODS FROM ONE LOCATION TO ANOTHER WITHOUT ADDING VALUE Transport refers to the movement of people, tools, inventory, equipment, or products further than necessary in between processes. It refers: A cost incursion Adds no value to the product Wastes time and energy Can end up damaging the products themselves. Excess transportation may be caused by: Poor layouts, Large distance between operations Lengthy, or complex material handling systems Working to faster rate than customer demand Multiple storage locations

6. Optimal Practices Utilizing most efficient routes (most obvious route may not be most efficient) Staging processes as close together as possible Optimizing material handling systems and consolidate storage areas Avoiding lengthy or complex material-handling systems Transport

7. Inventory Inventory waste is stock in excess of the requirements necessary to produce goods or services ‘Just In Time’ Excess inventory increases lead times, consumes productive floor space, delays the identification of problems, and inhibits communication. Excess inventory can be caused by: Over-purchasing Inventory Build-up between Processes Large Batch Sizes Stagnant Materials Overproducing HAVING AN EXCESS OF MATERIALS THAT TIE UP STORAGE SPACE, CASH & RESOURCES

8. Optimal Practices Purchasing raw materials only when needed and in the quantity Reducing buffers between production steps Adjusting the production process to create a smooth flow of labor Observing the First-In-First-Out principle regarding stagnant materials Creating a queue system to prevent overproduction. Use Just-in-Time (JIT) inventory techniques Inventory

9. Motion Poor Workstation Layout Poor Workplace Organization Large Batch Sizes Reorientation Of Materials UNNECESSARY MOVEMENTS BY HUMANS OR MACHINES THAT COULD BE SIMPLIFIED Any unnecessary movement of people, equipment, or machinery which includes walking, lifting, reaching, bending, stretching, and moving. It can include repetitive movements that do not add value to the customer, reaching for materials, walking to get a tool or materials, and readjusting a component after it has been installed . Wasteful motion is caused by :

10. Optimal Practices Improving workstation layouts to prevent excessive walking, bending, or reaching Arranging methods to allow parts to transfer smoothly from one hand to the other Redesigning the workplace layout to allow for less reorientation of materials Placing equipment near the production location Putting materials at an ergonomic position to reduce stretching and straining. Motion

11. Waiting IDLE TIME PRODUCED AS A RESULT OF LACK OF SYNCHRONIZAION B/W PROCESSES Waiting involves any idle time produced when two interdependent processes aren't completely synchronized. This can be caused by machines, products, people, and information that forces operators to wait or work inefficiently. A lot of our time waiting for various reasons that may include: Previous operations running over their expected time Deliveries failing to arrive Unreliable people and machines Poor M an/Machine coordination Need for batch, instead of single product, completion Time required to rework a product

12. Waiting Optimal Practices Designing processes to ensure continuous flow or single piece flow Synchronizing processes (machine & human) as best as possible Leveling out the workload by using Standardized Work Instructions Increasing reliability of processes Reducing down time by improving efficiency Developing flexible multi-skilled workers who can quickly adjust in the work demands

13. Overproduction The Toyota Production System is also referred to as “Just in Time” (JIT) because every item is made just as it is needed. Overproduction manufacturing is referred to as “Just in Case.” and cause huge losses PRODUCING MORE THAN NECESSARY OR FASTER THAN SCHEDULED Overproduction is to manufacture an item before it is actually required. As i t is tempting to produce as many products as possible when there is idle worker or equipment time. Overproduction costs high to a manufacturing plant as it not only prohibits the smooth flow of materials but actually degrades quality and productivity. This creates excessive lead times, results in high storage costs, and makes it difficult to detect defects. Overproduction works in two forms: Producing something before it is needed Producing too much of a product, resulting in work-in-progress and surplus stock

14. Overproduction Optimal Practices Balancing S upply and Demand Producing per actual demand rather than forecasted sales Adopting Just-in-Time (JIT) manufacturing philosophy Creating more reliable processes

15. Over Processing PERFORMING PROCESSES BEYOND WHAT IS REQUIRED BY THE CUSTOMER Over-processing refers to doing more work, adding more components, or having more steps in a product or service than what is required by the customer. Which includes: Using a higher precision equipment than necessary Using components with capacities beyond what is required Running more analysis than needed Over-engineering a solution Adjusting a component after it has already been installed H aving more functionalities in a product than needed Generating more detailed reports than needed Having unnecessary steps in the SOPs Duplicate entry of data in multiple documents

16. Over Processing Optimal Practices Clarifying Customer’s standards and expectations ahead of time Producing to the level of quality and expectation that the customer desires, and make only the quantities needed Only performing the processes necessary to meet these standards and expectations Using appropriate processes (Avoid overly complex machinery or processes if possible) Standardizing best techniques for workers to follow Setting clear specifications and quality acceptance

17. Defect Defects occurs due to variation in the standard operating process & leads to manufacturing of product which is not fit for use, resulting in either Reworking or Scrapping the product. Both results are wasteful as they add additional costs to the operations includes: Quarantining Inventory, Re-inspecting, Rescheduling & Capacity Loss, without delivering any value to the customer. Defects are caused by: CORRECTION WHICH INCLUDES ADDITIONAL WORK PERFORMED ON A PRODUCT In many organizations the total cost of defects is often a significant percentage of total manufacturing cost Inadequate Training Skills Shortage Incapable Processes Incapable Suppliers Operator Error Excessive Stock Transportation

18. Defect Optimal Practices Developing a world-class quality assurance program Focusing on preventing defects rather than resolving problems post-production Seeking for the most frequent defect and focus on it. Designing a process to detect abnormalities and do not pass any defective items along the production process. Standardizing work to ensure a consistent manufacturing process that is defect free. Routine Training, Capable Suppliers, Reduce Excess Stock etc. Implementing a Poka -Yoke ("Mistake-Proofing") system to reduce defects

19. Unutilized Talent WASTE OF UNUSED HUMAN TALENT AND INGENUITY This waste occurs when organizations separate the role of management from employees. In some organizations, management’s responsibility is planning, organizing, controlling, and innovating the production process. The employee’s role is to simply follow orders and execute the work as planned. By not engaging the frontline worker’s knowledge and expertise, it is difficult to improve processes. As people doing the work are the ones who are most capable of identifying problems and developing solutions for them. Non-utilized talent includes: Insufficient Training Poor Incentives Not asking for employee feedback Placing employees in positions below their skills and qualifications

20. Unutilized Talent Optimal Practices Appropriate TNI & Sufficient Training to Employees Talent Based Incentives Routine employee feedback Placing employees in positions as per their Talent, Skills, & Qualifications

21. Creativity An additional waste that you may find is the failure to harness the people in your company. One lean manufacturing principle involves respecting employees and involving them in the improvement process. Failing to do this is one of the most shortsighted wastes because: Employees know your business best and can come up with the optimal solutions for improvement Lack of ownership leads to sub-optimal performance Resources Wasting resources results when you don't use your facilities efficiently. A few examples include: Failing to turn off the lights and heat when they're not needed Leaving the machines running Not closing doors and allowing the heat to escape By-Products This waste is what happens when you fail to use the by-products from your process for something productive. For instance, if you had a furniture factory, you could use your sawdust and off-cuts to generate heat or electricity for the factory. Additional Wastes

22. The first step to reducing waste is recognizing its existence & having an effective process for identifying them Value Stream Mapping (VSM) is a Lean management method for analyzing the current state and designing a future state. It shows the flow of information and material as they occur. It effectively maps out the processes involved, displaying the relationship between production processes in a visual manner separating value-added and non-value-added activities Using the VSM and start with the end customer in mind Working backwards from the end customer to the start of the production processes Documenting instances of the 8 wastes in the processes and develop a plan for eliminating or reducing them Continuing challenging the team to find more wastes and continuously improve  your processes Engaging with the frontline workers and elicit their ideas for improvement As theteam begins reducing efficiencies they will gain more confidence in their problem-solving capabilities and over time reducing waste becomes a part of their daily routine Identifying and Eliminating the Wastes

23. “If you always do what you always did, you’ll always get what you’ve always got.” – Henry Ford

24. References  L eanmanufacturingtools.org leanop.com en.wikipedia.org leanmanufacturingtools.org www.kainexus.com Praneet Surti