The Seven Wastes

Value" is any action or process that a customer would be willing to pay for. Lean manufacturing is a management philosophy focused on the reduction of the "seven wastes in" order to improve overall customer value.

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THE SEVEN
WASTES
Topics on Quality, Lean
Manufacturing and Productivity
Improvement
Presented by
JORGE ROS
Lean Definitions
Waste:Anythingotherthantheexactamountofequipment,materials,parts,
space,andworkers'effortsthatareabsolutelyessentialtoaddvaluetoa
product.
Thisis:Everythingthatincreasesproductioncostswithout
addingvaluetowhatisbeingproduced.
Value-Added:Anythingthatthecustomerwantsandiswillingtopayforit.
Non-Value-Added:Anythingthatthecustomerdoesn'twantsandwon’t
payforit.
CUSTOMERS WILL ONLY PAY FOR THOSE THINGS THAT HE
NEEDS AND ITS USEFUL FOR HIM. ANY OTHER THING WE DO IS
A WASTE, A DISPEND OR WHATEVER WAY WE WANT TO NAME
IT.
¿WHO PAYS FOR IT?

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The Toyota Production System
The Toyota Production System definition states that it is:
“Aphilosophicalapproachtobusinessthatisbasedonsatisfyingthe
customer(internalorexternal)byproducingqualityproductsthatare
justwhattheyneed,whentheyneedthem,inthequantityrequired
usingaminimumofmaterials,equipment,space,laborandtime(in
summary:Toeliminatewastes).”
Lean System Components
PHILOSOPHY :ToEliminateWaste,HumanDevelopment,
Teamwork,Quality,ContinuousImprovement,Problem
Solving,JIT,etc.
TOOLS:Kanban,TPM,5-S,Mistakeproofing,Cellular
Manufacturing,OnePieceFlow,QuickChangeover,
Standardization,ValueChainMapping,etc.
ACTION:ProblemSolving,Brainstorming,RootCause
Analysis,Implementation,ProcessImprovementTeams,
Training&Learning,etc.

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Lean Philosophy Basics: for a new Culture
JIT-Build to order. Produce
only what is needed.
QUALITY-Don’t pass a bad
part to the next process.
STANDARDIZATION -
Standardize processes.
LEAN-Eliminate all waste.
CUSTOMER FOCUS -
Satisfy customer needs.
TRAINING-Everyone
knows what is normal or a
special variation.
COMMUNICATIONS -
Communicate all useful
information in a usable form.
Lean Philosophy Basics for a new Culture
PRODUCE WITH QUALITY
–Think of a production system,
not a quality system
INNOVATION -Try new ideas.
Change. Improve.
TEAM WORK -Everyone
participates. Management
supports workers.
VOICE OF THE CUSTOMER
-Learn from customers.
MORE TRAINING -Team
training & Problem Solving.
KAIZEN-Continuous
Improvement (PDCA).
PROCESS ORIENTED -
Focus on the process not the
results.

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1.Overproduction.
2.Wait Time.
3.Transportation waste.
4.Processing waste.
5.Motion/Movement waste .
6.Inventory waste.
7.Defectswaste.
The Seven Wastes
Overproduction
Producingmoreproductsthanisneeded,fasterthanneeded
orbeforetheyareneededisawaste.
Addingextraunitstothequantityneeded“justincase”orbuildingtoa
pre-definedlotorbatchsizeisalsowasteful.

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Consequences of Over-Production
LossofProductionControl.
Fixingrejectsbecomesalowpriority.
IncreasedMix-ups,mistakesandconfusion.
Valuabletimeandresourcesconsumed(wasted)building
productsthatarenotapriority.
Overproduction Causes
•Poor Planning Process.
•“Just-in-case” instead of “Just-in-time” production.
•Poor communications between departments.
•LowCapabilityProcesses,thatareunableofproducingthequantity
and/orqualityrequiredinaconsistentbasis.
•Prolonged setup and cycle times.
•Sub-optimizationcausedbylocaloptimization(Processesthat
benefitsasingledepartment’sinterestsagainsttheorganization’s
interests).
•Low equipment reliability.

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Wait Time
Waittimewasteoccurswhenaworkercannotproceedwith
thenexttaskinaprocess.
Thereareworkerswaitinganddoingnothing(wastingtheirtimeor
makingotherswastetheirs)whileothersworkloadisexcessive.
Wait Time causes
Lackofanadequatemaintenance.
Needofpropertoolsormaterials.
Lengthysetuptimes.
Lackofcrosstraining.
LackofSOPorundocumentedworkmethods.
Productionbottlenecks.
Irregulardistributionoftraining.

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Consequences of Wait Time waste
•Personnelthatcostdoingnothing(addingnovalue).
•Delaysthatleadtoovertimetoconcludewhatwasprogrammed.
•Costsduetoinefficientprocessesthatexceedthestandardcosts.
•Lossofmotivation;Lowmorale.
Transportation Waste
Anymaterialmovement thatdoesnotdirectlysupport
immediateproduction.
Whenproductistransportedtoaplaceotherthanthenextprocess
locationor,thenextprocessisnotlocatedadjacenttothecurrentone.

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Examples of Transportation waste
Unitsareparkedofftheproductionfloortogathera
“fulllot”forabatchoperation.
ProductionLotsthataresentofftotheothersideof
theplantforthenextprocessstep.
Thiscanoccur,eitherbetweenoperationsorwithin
anoperationwhereworkstationsarenotproperlylaid
off.
Containersthataretoobiganddifficulttoopenor
close.
Excessofmaterialhandlingequipment.Lift-trucks
thattravelempty.
Transportation waste causes
•Improper Facility Layout
•Large buffers .
•Large lot purchasing or processing.
•Poor production planning.
•Poor scheduling.
•Poor work place organization.

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Processing waste
Anyunnecessarystep,eitherproductionorcommunication,
thataddsnovaluetoaproductorservice.
Occurswhenweexecuteanoperations,andthecustomerisnotwilling
topayforwhatisbeingdone.
Processing waste causes
Lackofaconcurrentdesign.
Processespoorlydocumented(LackofSOP’s).
Lackofcustomerinputconcerningrequirements.
Poorconfigurationcontrol.
QualityStandardsnotrelatedtocustomerneeds.
Redundantinspectionsandapprovals.

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Consequences of Processing waste
•Timespentbuildingafeaturethatisirrelevanttothe
customerandthatthecustomerwillnotpayfor.
•Additionalcostsformaterialsusedinexcess.
•Lackofcontrolbecauseimproperuseofdesigndocuments.
•Productsthateither,exceedtherequirementsofthe
customerorfailtocomplywiththem.
Motion/Movement waste
Anymovementofpeoplewhichdoesnotcontributetoaddvalueto
theproductorservice.
Personsmovingfromoneplacetoanothercreateafalseimpressionofbeing
working,whileinreality,aredoingnothing.Theyarecostingwhileaddingno
value.

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Consequences of Motion/Movement waste
Employeesmovefromoneworkstationtoanother,doing
nothing.
Theyareunnecessarytrips.
Novalueisaddedduringthisprocess.
Includetimespentlookingforparts,tools,fixtures,etc.
Includetimespentgoingto/fromawarehouse.
Motion/Movement waste Causes
•Ineffective Layouts (equipment, office and plant).
•Lack of Visual controls.
•Poor Process Documentation.
•Poor work place organization.

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Inventory waste
Anysupply(MaterialsorGoods)inexcessofwhatisrequired
todeliverproductsinaJust-In-Timemanner.
Thesepartswillneedtobeprocessed,moved,counted,stored,etc.Will
addtocostsandcannotbeshippedtoourcustomers.
Inventory waste causes
Poorsalesforecasting(DemandForecasting).
Longleadtimes(set-upandcycletimes).
Poorinventoryplanning.
Poorinventorytracking.
Unbalancedproductionprocesses.
Processesthatcannotproducetherequiredquantityorqualityof
productsinaconsistentmanner.
Suppliersthatcannotsupplytherequiredquantityorqualityof
productsinaconsistentmanner.

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Consequences of Inventory waste
•Large lot purchases of raw materials, only to be stored for
weeks or months.
•Very large WIP’s inventories.
•Low inventory turnover. Need of large working capital to
finance inventories.
•Damaged Products.
•Obsolete products.
Defects waste
Costsduetosorting,repairingand/orrepairingproducts.
Includecostofmaterialsscrappedduetodefects.
Alsoconsistinthecostofgoodsreturnedbycustomers,recall
campaigns.
Recyclingpartoftheproductsisalsoawaste.

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Defects waste causes
Toomanyproductmodels.
Highinventorylevels.
Inadequatetools/equipment.
Pooremployeetraining.
Poorlayouts.
Unnecessaryhandling.
Poorprocessdocumentation.
Processesthatcannotproducetherequiredquantityorqualityof
productsinaconsistentmanner.
Suppliersthatcannotsupplytherequiredquantityorqualityof
productsinaconsistentmanner.
Consequences of Defects waste
•Excessiveprocessingcosts.
•Manyadditionalnon-value-addedprocessesoroperations.
•Additionalqualitycontrolinspectionsneeded.
•Damagedrelationswithcustomers.