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Lean Management – Types of Waste

The Main One
→Transportation →Inventory →Motion →Waiting →Over-production →Over-processing →Defects
Transportation
√ Definition: Any movement of materials, supplies or resources that does not add value to the internal or external customer needs
√ Characteristics
• Extra carts, fork lifts
• Multiple storage locations
• Complex inventory management
• Extra facility space
• Improper facility layout

 Inventory
√ Definition: Any supply in excess to process requirements necessary to produce goods or services just in time
√ Characteristics
• Material between processes
• Additional material handling resources
• Additional investment / cost
• Storage space
• Perishable, damage and obsolescence
• LIFO instead of FIFO
Motion
√ Definition: Any movement of people, resources or machines which does not contribute/add value to the product or service
√ Characteristics
• Human motion
• Lack of visual controls
• Looking for tools
• Material too far apart (walk time)
• Machine motion
Waiting
√ Definition: Long period of inactivity for people, machine, or material waiting for each other
√ Characteristics
• Improper scheduling
• People waiting for machine or resources
• Poor material planning
• Late Deliveries
• Unbalanced operations
Over-Production
√ Definition: Producing faster or excess quantity than the internal or external customer needs
√ Characteristics
• Just-in-case reward system
• Large lot size batch processing
• Improper demand planning/Unbalanced material flow
• Producing early
• Inventory stockpiles
Over-Processing
√ Definition: Effort which adds NO value to a product or service. Enhancements which are not valued by customers.
√ Characteristics
• Lack of clear customer specifications
• Endless refinement
• Redundant approvals
• Extra copies or excessive information
Defect
√ Definition: Rework needed to rectify the defect in product or service to fulfill customer requirements
√ Characteristics
• Quality problems
• Extra resources to inspect/test/rework
• Insufficient training
• Inconsistent work methods, tools
• Excessive variation

Other type of Waste
Underutilized Skills
Wrong Use of Automation
Wrong Use of Metrics

Underutilized Skills
√ Definition: Any skill that is not utilized to its full potential leading to customer value
√ Characteristics
• Skills based compensation
• Over qualification
• Under performance
• Morale
Wrong Use of Automation
√ Definition: Any automation that is taking longer than manual work or creating additional work
√ Characteristics
• Over automation
• Under automation
• Unnecessary automation
• Automation defects/rejects
• Examples
Wrong Use of Metrics
√ Definition: Any metrics that is incorrectly measured, inappropriately used or misinterpreted is another type of waste
√ Characteristics
• Incorrect data collection
• Inappropriate use
• Misinterpretation
• Misaligned targets or goals
• Examples

Summary
√ Seven Main Types of Waste
√ Other Types of Waste


To Be Continue

Comments

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