1. LeanSigma ® Facilitator Training Module 5 – Waste

2. Topics Page Lean Sigma Process.......................... 3 Customer Perspective........................ 4 Waste: Tim Wood........................... 5

3. Lean Sigma has six steps to optimize processes. 3

4. Value and waste are always viewed from the customer’s perspective. 4 Anything that is not value-added or business non value-added is waste.

5. Waste comes in many different forms. “Tim Wood” is an acronym that helps us remember the most common forms. Excess Transportation Excess Inventory - materials and information Unnecessary Motion Waiting Over-producing Over-processing Defects and rework 5

6. Moving materials (Transportation) 6 Characteristic: Poorly designed floor space Lack of communication Inconsistent schedules Large batch sizes Bottlenecks Example: E-mailing files back and forth Use of large carts to move work Definition: The movement of material or information from one function to the next that does not directly add value to the service

7. Waste of Excess Inventory: Material/Information 7 Definition: Any supply in excess of customer requirements necessary to produce services Characteristic: Too many forms or paper Too many copies Extra space for storage Example: Excess paper reports Needless cc: on e-mail Two forms used with the same information Duplicate copies of the same file

8. When you remove the excess work-in- process, other wastes become visible. 8 “Now You See It!”

9. Waste of Excess Motion 9 Definition: Any movement of people or equipment that does not add value to the service Characteristic: Looking to find information, supplies, or equipment Multiple work stations to perform one task Too much search or walk time Example: Pulling information from various sources to add into one Walking back and forth to an inconveniently placed fax machine Indiana Jones Kick Boxer

10. Waste of Waiting 10 Definition: Idle time that is produced when two processes are not synchronized Characteristic: Unbalanced workloads – some steps take much longer than others Process flow stops due to unplanned interruptions Queues or idle time Capacity doesn’t match volume Example: Queues Idle Time Boarding a plane

11. Waste of Over-Producing 11 Definition: Producing more than needed or producing faster than needed Characteristic: Extra information, supplies, or equipment Unbalanced workflow Large batch sizes You produce “just in case” you need it. Example: Running analyses before they are needed Preparing mortgage docs before they are needed Preparing a special report just in case the client asks for it again. I love Lucy

12. Waste of Over-Processing 12 Definition: Effort which adds no value to a product or service Characteristic: Bottlenecks Lack of understanding customer needs Endless refinement Redundant approvals or checks Example: Reports produced, but not used Recording the same information on four different forms in a chart/system Reworking a Powerpoint deck over and over because the end- user’s needs are unclear Assigning work to an over- qualified resource

13. Waste of Errors (Defects) and Rework 13 Definition: Rework or repair a service to meet customer’s requirements Characteristic: Extra manpower required to rework, revalidate, repair Missed deadlines Poor customer relations Reactive vs. proactive Unpredictable process outcomes Example: Encoding errors Late deliveries Rerunning jobs that fail Staple gun