1. Operations Management BY THE NUMBERS KIMBALL BULLINGTON, PH.D. MGMT 6650 – SUMMER 2015

2. 2 7 Wastes Learning to See AUGUST 03, 2015 KIMBALL BULLINGTON, PH.D. MTSU

3. 3 What are the 7 Wastes?  Waiting  Inventory  Defects  Overproduction  Over-Processing  Motion  Transport

4. 4 Waste 1: Waiting  About 95% of lead time is due to waiting time. Could be queueing to process, queueing in process, or waiting to move.

5. 5 Waste 2: Inventory  Inventory is classified as an asset. How can it be a waste?

6. 6 Waste 3: Defects  Defects can happen anywhere in the process – from raw materials to finished goods. The most expensive defects are usually those shipped to customers. Why are these more expensive?

7. 7 Waste 4: Overproduction  Overproduction is considered “acceptable” in some industries.

8. 8 Waste 5: Over-processing  This haircut probably saved a life. It doesn’t make the one who received it look any smarter.

9. 9 Waste 5: Over-processing  Don’t put money into areas the customer doesn’t value.

10. 10 Waste 6: Motion  Unnecessary or unnatural motions are harmful and wasteful.

11. 11 Waste 6: Motion  Unnecessary or unnatural motions are harmful and wasteful.

12. 12 Waste 6: Motion  Unnecessary or unnatural motions are harmful and wasteful.

13. 13 Waste 7: Transport  Spaghetti diagrams are used to evaluate movement in a work place.

14. 14 Waste 7: Transport  Kitchen design uses a triangle concept. Bigger isn’t always better.

15. 15 7 Wastes  How can they be applied to offices?