Lean Service Waste Identification 6/26/2007

Design Kaizen Manufacturing Value-Added The difference between the cost of inputs and the value or price of outputs Inputs Mat’ls Equip. Capital Transformation/ Conversion process Outputs Goods Services Control Feedback Value added

6/26/2007Design Kaizen Manufacturing Value-Added The difference between the cost of inputs and the value or price of outputs Inputs Mat’ls Equip. Capital Transformation/ Conversion process Outputs Goods Services Value added Information Materials / Products

6/26/2007Design Kaizen Lean Mfg People MeasurementEquipmentMaterials MethodsEnvironment

6/26/2007Design Kaizen Lean Manufacturing Types of Waste  Overproduction  Waiting  Transport  Extra Processing  Inventory  Motion  Defects

6/26/2007Design Kaizen Lean Design People MeasurementEquipmentMaterials MethodsEnvironment

6/26/2007Design Kaizen Service Operations Types of Waste Because there is a different focus in service ops in order to add value, the wastes come in different forms.

6/26/2007Design Kaizen Service Value-Added The difference between the cost of inputs and the value or price of outputs Inputs Info Knowledge Time Transformation/ Conversion process Outputs Designs Services Value added Information

6/26/2007Design Kaizen Value-Added The difference between the cost of inputs and the value or price of outputs Inputs Info Knowledge Time Transformation/ Conversion process Outputs Design Drawing Control Feedback Value added

6/26/2007Design Kaizen Lean Design People MeasurementResources Information MethodsEnvironment

6/26/2007Design Kaizen Lean Service Types of Waste  People  Processes  Information  Resources  Measurements  Environmental

6/26/2007Design Kaizen Lean Service People Wastes  Goal Alignment  Assignment  Waiting  Motion  Processing

6/26/2007Design Kaizen Lean Service Process Wastes  Control  Variation  Tampering  Strategic  Reliability  Standardization

6/26/2007Design Kaizen Lean Service Process Wastes, continued  Suboptimization  Scheduling  Work-around  Uneven flow  Inspection  Errors

6/26/2007Design Kaizen Lean Service Process Wastes – Causes of Errors  Lack of knowledge, skills, or ability.  Mental errors – slips and mistakes.  Sensory overload  Mechanical breakdown  Distractions  Loss of memory  Loss of emotional control After LEMJ, GOAL

6/26/2007Design Kaizen Lean Service Information Wastes  Inaccurate Information  Hand-Off  Communication Process Breakdown  Translation  Missing Information  Irrelevancy

6/26/2007Design Kaizen Communication Process Breakdown EncodeDecode Noise Feedback

6/26/2007Design Kaizen Communication Process Breakdown EncodeDecode Noise Feedback

6/26/2007Design Kaizen Communication Process Breakdown EncodeDecode Noise Feedback

6/26/2007Design Kaizen Communication Process Breakdown EncodeDecode Noise Feedback

6/26/2007Design Kaizen Communication Process Breakdown EncodeDecode Noise Feedback

6/26/2007Design Kaizen Lean Service Resource Wastes  Inventory  Capital equipment  Movement

6/26/2007Design Kaizen Lean Service Environmental Wastes  Leadership  Physical  Emotional  Business

6/26/2007Design Kaizen Lean Service Leadership Wastes  Focus  Structure  Discipline  Commitment  People Development

6/26/2007Design Kaizen Characteristics of Good Measures  Personal Impact – The causes that affect the outputs are under the control of the people or team who are responsible.  Immediacy – There is little time between changes in the inputs and changes in measured performance.

6/26/2007Design Kaizen Characteristics of Good Measures  Proximity – The measure is closer to the performance of the process.  Causality – Measure assesses a cause rather than an effect.  Proportionality – Changes in the measure are proportional to changes in performance.

6/26/2007Design Kaizen Characteristics of Good Measures  Customer Focus – Measure reflects performance relative to customer requirements.

6/26/2007Design Kaizen References  Office Kaizen by William Lareau  The Lean Enterprise Memory Jogger, GOAL QPC.