1. Waste Identification Business Excellence
BE-TL1-002-DRAFT-Waste Identification
Waste Identification
Business Excellence
DRAFT
October 5, 2007

2. Table of Contents Overview & Scope 3 Objective 4 Enemies of Lean 5 - 8
Contents Slide(s)
Overview & Scope
Objective
Enemies of Lean
Waste 1 – – 23

3. Overview & Scope Overview Scope
A fundamental characteristic of a lean manufacturing is the systematic identification and elimination of waste to reduce manufacturing or operating costs. A relentless focus on eliminating waste will have a profound effect on the quality of the service or product.
Scope
This module provides an overview of what is Waste, how to to identify and finally eliminate them.

4. Objective
Eliminating all activities that do not add value & or are safety nets, maximize use of scarce resources (capital, people and land)
Assist in the identification and steady elimination of waste (muda), the improvement of quality, and production time and cost reduction.
Understand how to solve the problem of waste :
Lean Manufacturing has several 'tools' at its disposal - the "5 Whys" and mistake-proofing (poka-yoke).
improving the 'flow' or smoothness of work (thereby steadily eliminating mura, unevenness) through the system

5. WASTE, VARIABILITY AND INFLEXIBILITY ARE THE THREE ENEMIES OF LEAN
Enemies of Lean Manufacturing
WASTE, VARIABILITY AND INFLEXIBILITY ARE THE THREE ENEMIES OF LEAN
System
(inhibitors)
Business flows (inputs)
Performance indicators
(outputs)
Waste
People and process
Quality
Material
Cost
Variability
Inflexibility
Information
Delivery
Feedback loop

6. WASTE IS WORK THAT ADDS COST BUT DOES NOT ADD VALUE
Enemies of Lean Manufacturing
Value added
Value added
Work that directly increases the value of the product (e.g. assembly of parts)
Waste
Work which does not increase the value of the product (e.g. rework due to wrongly assembled parts or operator waiting-time while machine is running.)
Waste
Elements of work
Objective
The objective is to maximize the value added part by eliminating waste and incidental work
Incidental work
( Value Enable )
Incidental Work (Value Enable)
Non value added, but necessary work (e.g. small movements to reach for material for assembly, quality-checks)
WASTE IS WORK THAT ADDS COST BUT DOES NOT ADD VALUE
Source: McKinsey

7. Enemies of Lean Manufacturing
THE OBJECTIVE IS TO REDUCE WASTE AND INCREASE THE VALUE ADDED WORK IN ORDER TO REDUCE COST
Waste
Value added
Incidental work
Elements of work

8. The 7+ 1 Waste Enemies of Lean Manufacturing Waste Inflexibility
Overproduction
Waiting
Transporting
Overprocessing
Inventory
Rework
Motion
Intellect
The 7+ 1 Waste
Waste
People variability
Process variability
Material
Information
Customs and practices
Configuration
Capability
Capacity
Change-over
Inflexibility
Variability

9. WASTE 1 – OVERPRODUCTION
To produce sooner or in greater quantities than what customers demand
Example - Running bottom side boards faster than top side
- Producing excess quantities than customer demand
just in case there are rejects along the way
- Poor panning and load the line to run model where
there is no customer demand
- Over production of one combo board………….
Overproduction can prevent other essential activities from taking place
Overproduced items need to be stored (inventory) and create further waste
Produce only what the customers want, when they want it

10. OVERPRODUCTION – EXAMPLES
Motion
Rework
Transportation

11. WASTE 2 – WAITING
Under-utilizing people or parts while a process completes a work cycle
Example: - Waiting for all the operators to arrive to start a meeting
- Waiting for the boards to come out from the machine
- Waiting for the boards in trolley sent to the work station
- Waiting for handload materials to be despatched
- Waiting for technician to rectify the machine
- Waiting for board due to upstream bottleneck
- Waiting for machine to be converted to next model …….
Most machines do not need supervision
Essential wait time can be filled productively0
Rebalance activities to remove waiting, then make essential
waiting visible

12. WAITING – EXAMPLES
Motion
Rework
Transportation

13. WASTE 3 – TRANSPORTATION
Unnecessary movement of parts or people between processes
Example: - Essential tools are kept far from work station
- Unnecessary long distance between work station
- Process is batch build and off-line
- Poor planning, walk up and down to get one item at
a time during a conversion or line processes
- Poor line layout ……………
Result of a poor system design and/or layout
Can create handling damage and cause production delays
Relocate processes, then introduce standard sequences for transportation

14. TRANSPORTATION – EXAMPLES

15. WASTE 4 – OVERPROCESSING
Processing beyond what the customer requires
Example: - Stirring a jar of solder paste over and over
- Using tissue to wipe the board surface over and over
- Shrink wrap the pallet over and over
- Reworking a condition where it is acceptable by spec
- Inspection after inspection due to lack of confidence
- Unnecessary handling of the board………………..
May result from internal standards that do not reflect true customer requirements
Often arises where standards are difficult to define
May be an undesirable effect of an operator’s pride in his work
Provide clear, customer-driven standards for every process

16. OVERPROCESSING – EXAMPLE
Waiting 7 2
Motion 6 3
Rework
Transportation
Inventory

17. WASTE 5 – INVENTORY
Material that is not adding value
Example: - Upstream processes pump out more then the down
stream operations can cope, inventory between stations
- Process errors undetected, whole lot of materials held
back for rework
- Poor planning, load the line with wrong model
- Build per Productions convenience, not per customer
demand
- Operator absenteeism causing line imbalance………
May be raw material, WIP or finished products
Symptomatic of a hidden problem
Increases operational costs (storage, risk of obsolescence)
Increases manufacturing lead time
Improve production control system and commit to reduce unnecessary "comfort stocks"

18. INVENTORY – EXAMPLES
Motion
Rework
Overprocessing

19. REWORK – EXAMPLES
Transportation 4

20. WASTE 6 – SCRAP AND REWORK
Repetition or correction of a process on a product
Example: - Using wrong parts due to carelessness of the operator
- Giving confusing instructions by the leaders
- Poor workmanship of the operators
- Operators did not follow standard work procedures
- Poor line handling system causing damage
- Unnecessary rework due to poor spec knowledge or
poor debug diagnostic skills
Rework is failure to meet the "do it right the first time" expectation
Scrap is product that fails to meet expectation and cannot be repaired
Can be caused by methods, materials, machines or manpower
Requires additional resources so that normal production is not disrupted
Analyze and solve root causes of scrap and rework

21. WASTE 7 – MOTION
Unnecessary movement of parts or people within a process
Example: - Poor work station layout, frequent use items are
located far from operators
- Non flexible line set-up, operators have to move
around to get job done.
- Poor work station planning, computer screen is
placed too high up from viewing height
- Handload materials are not placed at suitable location
or dispenser …………..
Result of a poor work station design/layout
Arrange people and parts around stations with work content that has been standardized to minimize motion

22. MOTION – EXAMPLES 5
Overprocessing
Inventory

23. untapped, latent potential of people's ideas and actions
WASTE 8 – INTELLECT
"We know what needs
to be done. We tell
management, but
they don't listen."
Overproduction
"The biggest issue is
making us see that
management is going
to make it happen." 1
Waiting 7 2
Motion
The 8th waste is the
untapped, latent potential
of people's ideas and actions
Intellect 8 6 3
Rework
Transportation
"We've been through
this sort of program
before and nothing
ever changes "
"Management never speaks to us" 5 4
Inventory
Overprocessing