1. The 8 Wastes are Destroying Your Profits! Presented by: Brian D. Krichbaum Process Coaching Incorporated

2. Process Coaching Incorporated Page 2 of 65 © 2008 Process Coaching Incorporated The Eight Deadly Wastes Are the 8 Wastes destroying your profits?  Understanding the 8 wastes is the foundation of lean thinking  You must comprehend them to see the wastes being generated in your business  The wastes must be identified before they can be eliminated

3. Process Coaching Incorporated Page 3 of 65 © 2008 Process Coaching Incorporated The Eight Deadly Wastes Overproduction

4. Process Coaching Incorporated Page 4 of 65 © 2008 Process Coaching Incorporated Overproduction - Producing materials or completing services that aren’t needed now The Eight Deadly Wastes Overproduction

5. Process Coaching Incorporated Page 5 of 65 © 2008 Process Coaching Incorporated We always have excuses for over- producing. I’m sure you’ve heard (or used) some of the most common. “The setup times are long, and since we’ll use it next month anyway…” “Since I’m doing it anyway, I’ll just finish the forms for next week…” The Eight Deadly Wastes Overproduction

6. Process Coaching Incorporated Page 6 of 65 © 2008 Process Coaching Incorporated So what’s the big deal? It’s true that the setup times are long and we do plan to use the material soon. But what is missing in is that over-production costs money and time:  We pay to produce items not needed now  We pay to move them to the storage area  We pay to move them from the storage area  We rent warehouse space to store the extra parts The Eight Deadly Wastes Overproduction

7. Process Coaching Incorporated Page 7 of 65 © 2008 Process Coaching Incorporated  We search for the items when we actually need them  We expedite new production runs or rerun the forms when we can’t find what we need  The line shuts down because we don’t have what we need  We scrap the originals because they are obsolete or damaged when we find them days or months later. The Eight Deadly Wastes Overproduction

8. Process Coaching Incorporated Page 8 of 65 © 2008 Process Coaching Incorporated Exercise One Waste Identification  List an example of Over-Production from your process  Identify a possible reason for this waste  Recommend one or more actions to reduce the waste

9. Process Coaching Incorporated Page 9 of 65 © 2008 Process Coaching Incorporated Identify 1 example of each of the waste types Possible CauseProposed ActionHow will we know we were successful? Overproduction Excess Inventory Waiting Defects Transportation (Moving) Excess Motion Non-Value Added Processing Underutilized Resources Waste Identification Exercise