1. Wastes
7 at one blow

2. Definition
Any human activity which absorbs resources but creates no value
Muda
Japanese term for waste used by Toyota

3. Magnificent Seven Transporting Inventory Motions Waiting
Overproduction
Overprocessing
Defects

4. Transporting
Moving materials between work stations, buildings, desks, machines
No value added
In moving products between factories, between work centers, between desks, between machines, all that is added is lead-time – no value is created.

5. Inventory Caused by overproduction Take up floor space Use up cash
Do not add value
Hide problems
Caused by overproduction, inventories take up floor space – something that is always at a premium in factories and offices. There's always a tendency to use inventories to mask other problems. Remember, if you've got plenty of spares, there's no incentive to fix problems with quality!

6. Motions Of employees Effort & time that can be eliminated
Does not add value
Looking for parts, bending / reaching for materials, searching for tools, etc.

7. Waiting Next process step WIP for the next process step.
While waiting, the product is just soaking up ‘overheads’ – the last thing that the customer actually wants to pay for! N

8. Overproduction Inventories Obsolete parts ahead of demand.
This exposes the organization to risks in changing demands from customers, and is a disincentive to the firm to reduce the other wastes, since there’s always plenty of extra material to use in case of problems.

9. Overprocessing Of Parts Sledge hammer to crack nuts of parts
Running parts on machines that are too fast / too slow, or even too accurate to achieve the customer’s definition of Value. What's the problem with doing too good a job? Well generally it means too expensive a job for the market's expectations.

10. Defects Adds a layer of non value added work Inspection does not work
If processes produce defects, then extra staff are needed to inspect, and extra materials needed to take account of potential losses. Worse than this, INSPECTION DOES NOT WORK. Eventually you'll miss a problem, and then send a defective product to a customer. And they WILL notice, at which point, all hell will break loose!
For example, one of the Seven Wastes is Defects. Conventional wisdom in the face of processes which are not perfect, is to inspect the product, and so weed out the defective parts. Lean Thinking says that this is at best only a short term measure – what needs to happen is for the root cause of defects identified and eliminated, so removing the need for inspection at all.
Indeed, some authors have even suggested that all inspection stages act as a disincentive to workers paying attention to their own work – any mistakes will be picked up by the inspector. Where this is a visual inspection, this can only spell trouble – Gauge R&R research we’ve carried out into this type of ‘quality assurance’ has shown that it is seldom capable of reliably detecting or differentiating defects.

11. TIM WOOD Transport Inventory Motions Waiting Overproduction
Overprocessing
Defects

12. Types of Waste Type one Type two
type 1 in our typology — muda but unavoidable/Incidental — to type 2 — muda that can be completely eliminated right away/pure Waste. ...

13. Type 1 Determine Utilization and Performance Metrics
Develop a Demand Management Process
The nature of Type One Waste is such that it often crosses departmental boundaries (following the value stream). To eliminate its sources therefore requires cross-departmental teams.

14. Type 2 Kaizen Shop floor led improvements Continually Improve
Kaizen: "Continuous improvement. Kaizen activities generally follow the DEMMING CYCLE (Plan, Do, Check, Act)"

15. Reasons for Waste Laws of Physics Laws of the Land Outright cost
It would be great to speed things up by using magic, but that's sadly not possible!
You could reduce machine set-up time by removing all the safety guards, but killing your students is illegal.
Got a 20,000 ton press in the wrong location? You're probably going to have to live with that kind of problem

16. Reducing 7 Wastes All that remains—Value stream
Switch production from one product to another
"The specific activities required to design, order, and provide a specific product, from concept to launch, order to delivery, and raw materials into the hands of the customer"
VALUE STREAM. This is the sequence of operations that add the customer-perceived value to the organization's goods or services.
run the operation in a manner that minimises forecasting. This is achieved through either making, or customizing to order.

17. Reducing 7 Wastes Three techniques Minimize forecasting
Kaizen projects
Remove the source
Since many of the wastes are related to trying to operate an efficient system, in spite of customer unpredictability, it makes sense to run the operation in a manner that minimizes forecasting. This is achieved through either making, or customizing to order.
Significant amounts of Type Two Waste exist in almost all processes. These can usually be significantly reduced through a concerted, short-term project. In this, a team including those who actually run the process, technical experts, lay-persons, and a facilitator-expert plan and implement changes within a week. This is often called a “Kaizen Blitz”, or “kaikaku” from the Japanese terms for such shop floor-led improvements.
Type One Waste is only eliminated through removing its sources. In general, these are in fact Type Two Wastes, which due to their pervasive nature, are hard to see or eliminate. In general, these are tackled through a slower-burn version of kaizen, often lasting a few months.
The nature of Type One Waste is such that it often crosses departmental boundaries (following the value stream). To eliminate its sources therefore requires cross-departmental teams.

18. Level Scheduled Small batches Rapid response Improve Flexibility
Level Scheduling ('heijunka'): "The smoothing and spreading out of orders such that the daily production schedule reflects overall demand as a whole"
If this is done, then production can be level scheduled, so that each day’s output requirement is the same – the firm makes smaller and smaller batches at no cost penalty, and so increases its ability to respond to customer demands.
A pre-requisite of this is the ability to switch production from one product to another as quickly and painlessly as possible. This is achieved through the SMED system, which systematically streamlines the processes by which machines and processes are set up.
SMED - Single Minute Exchange of Dies: "The system developed by Shigeo Shingo to systematically reduce set-up times on machines from several hours, to nine minutes or fewer"

19. Kaizen Continuous Improvement by those that perform actual work
Perfection is the goal
Employee driven
Kaizen is a never ending improvement cycle towards perfection
Best source for suggestions and implementation are the workers engaged in the tasks
Successful companies implement several dozen suggestions per month

20. Remove Waste at its Source
Quality at its source
Fool proofing eliminates the source
Eliminate bad defective parts from entering production flow, eliminate the need for new parts and or corrective action (waste)
No defects no rework, no additional stock needed, no labor to inventory defects, no floor space required for non existent bad parts

21. Waste Elimination Results
Eliminate All Non-Value Added Activity
Customer pays only for the value they deem valuable
Cost reduced—profits increased