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Energy People Capital Water Materials Tools
Purpose of Waste
• Educate supplier of the evils of waste
– What – Where – Why – Steps to reduce and/or eliminate
• Show improvement potential that exists • Improve the process’s value added content
Identification of Waste Input (Resources) Transformation Output Energy People Capital Water Materials Tools Products Services .
Defining Waste Webster: “ to consume carelessly” “squander” “fail to take advantage” “uncultivated area” “junk” “worthless residue” “loss energy” “grow weaker” .
Definition of Waste • Anything that doesn’t add value to the process • Anything that doesn’t help create conformance to the customer’s specifications • Anything your customer would be unwilling to pay you to do .
Understanding Waste • Identification and elimination of waste is the central focus of a lean system • It is dependent on the understanding and involvement of all employees. • Successful implementation requires all employees to be trained to identify and eliminate waste from their work areas .
Understanding Waste Waste exists in all work … and at all levels in the organization .
Understanding Waste Waste: Anything other than the minimum resources – – – – – Equipment and tooling Direct and indirect labor Material Floor space Energy Absolutely necessary to add value to the product! .
Identification of Waste Types of Waste: – Inventory – Overproduction – Correction – Materials and information movement – Processing – Waiting – Motion .
Waste of Inventory Definition: Any supply in excess of customer requirements necessary to produce goods or services just-in-time Symptoms • • • • • • • • • Complex tracking systems Extra storage and handling Extra rework/hidden problems Paperwork/documents Stagnated information flow High disposal costs Obsolete material / landfill In-process packaging High utility costs • • • • • • • • Root Causes Product complexity Incapable processes Unleveled scheduling Poor market forecast Unbalanced workload Unreliable supplier shipments Inadequate measurement Misunderstood communications • Reward system .
Inventory Hides Problems!! Inventory Hides Waste!! .
Why We Want To Reduce Inventory 1. customers An organization + working capital Working Capital = Cash + Inventory + Accounts Receivables – Accounts Payables .defer payments . • • • Interest expense associated with working capital: Requirements to produce goods: People. indirect labor to move/store the inventory Administrative effort and cost to control the inventory (losses. materials.reduce inventory • • • Benefits of reducing inventory in working capital: Save interest expense Free up cash for investment 2. • • The greater the inventory. the greater the handling: Forklifts.collect faster . facility. locating and counting) . containers. know-how. bins.
• • • Inventories deteriorates.e. . and insurance Facilities should be used for Value-added activities (i. • • Inventory takes up space: Adds cost to heal.Why We Want To Reduce Inventory 3. • • Guiding principles of “lean” manufacturing: Elimination of buffers makes problems surface and forces organization to address and resolve problems Leads to need for: • • • • • • • Pull systems Quick die setup Manufacturing organized by product rather than process Good balancing Multifunctional workers Preventive maintenance Etc. causing more scrap and rework: Metal rusts Lubricants dry out Materials accumulate dirt 4. light. production rather that warehousing) 5.
. and/or sorted. Reduce scrap / rework. the entire inventory has to be scrapped.Why We Want To Reduce Inventory 6. reworked. • When defect is detected.
WASTE of Overproduction Definition: Producing more than needed Producing faster than needed Root Causes: Just-in-case logic Misuse of automation Long process set-up Unleveled scheduling Unbalanced workload Over engineered equipment/capability Redundant inspections Lack of reuse and recycling Symptoms Excessive raw materials Extra inventory Unnecessary work Excessive floor space utilized Unbalanced material flow Backups between departments Complex information management Disposal charges Extra waste handling and treatment High utility costs • • • • • • • • • • • • • • • • • • .
repairs and scrap Added inventory costs Customer returns Loss of customer confidence Loss of business Missed shipments / deliveries Hazardous waste generation • • • • • • • • • • • • • • • • • .WASTE of Correction Definition: Any supply in excess of customer requirements necessary to produce goods or services just-in-time Root Causes: Weak process control Questionable quality Lack of error proofing Unbalanced inventory level Deficient planned maintenance Poor product design Customer needs not understood Improper handling Poorly managed waste streams Inadequate training Symptoms Rework.
WASTE of Material and Information Movement Definition: Any material or information movement. Symptoms • • • • • • • • • • • Extra handling Extra handling equipment Extra inventory Large storage areas Over-staffing Reduced quality Extra paperwork Extra hand-offs Transport of disposal Excessive energy consumption Excessive emissions • • • • • • • • Root Causes: Mislocated materials Unleveled scheduling Unfavorable facility layout Redundant inspections Poor workplace organization and housekeeping Poorly managed waste streams Unbalanced processes Supply chain management .
inspection Inappropriate use of resources Excess energy consumption Processing by-products • • • • • • • • • • • • • • • • • . testing. Root Causes: Product changes without process changes Just-in-case logic Lack of communication Redundant approvals Extra copies. excess information Undefined customer requirements “stop-gap” measures that become part of the process Lack of reuse / recycling Symptoms Unnecessary work Extra equipment Longer lead time Reduced productivity Extra material movement Sorting.WASTE of Processing Definition: Effort which adds no value to the product or service from the customer’s perspective.
people wait for people. and machines waiting on machines • • • • • • • • Root Causes: Unbalanced workload Unplanned maintenance Long process set-up times Misuse of automation Quality problems Unleveled scheduling Ineffective layout Specialization Symptoms Under-utilization of resources Reduced productivity Increased in investment Idle equipment Large waiting / storage rooms Equipment running. not producing Unnecessary testing • • • • • • • .WASTE of Waiting Definition: Idle time created when people wait for machines. machines wait for people.
WASTE of Motion Definition: Any movement of people or machines Root Causes: Poor ergonomics / layout Machine / process design Inconsistent work methods Poor workplace organization and housekeeping Extra “busy” movements while waiting Symptoms Reduced productivity Large reach / walk distances Longer lead times Excess handling Reduced quality People / machines waiting High energy cost Inappropriate use of resources • • • • • • • • • • • • • .
Resource Conservation and Pollution Prevention Opportunity Energy Symptom (s) •High utility cost Root Cause (s) •Outdated technologies •Deficient planned maintenance •Need for conservation practices •Poor process design •Incomplete job instructions Corrective Action Suggestions •Useless energy intensive method than compressed air for cooling. parts moving and agitating liquids •Repair Steam and compressed air leaks •Install motion detection switches or lighting systems •Re-circulate and reuse cooling water •Throttle back water valves on leak detection and overflow rinse tanks •Find ways to reduce water usage •Install automatic valves to stop water flow when equipment is not being used •Consider fuel consumption and tailpipe emission reductions when optimizing transportation logistics Water •High water usage •High treatment costs transportation •High fuel cost •Smog and pollution •Lack of consideration on energy and environmental impacts .
Resource Conservation and Pollution Prevention Opportunity Hazardous waste Symptom (s) •Hazardous waste •Toxic emissions •High disposal costs •High pollution control costs •Excess material usage •Excess storage and handling •High disposal costs Root Cause (s) •Product design •Materials specifications •Lack of consideration of environmental impacts •Lack of reuse and recycling procedures •Incomplete process instructions •Insufficient workplace organization •Inadequate education and training Corrective Action Suggestions •Utilize non-solvent-based coatings and cleaners •Purchase only non-toxic materials and products •Use a metals reclamation and wash system to recover metals and reduce wastewater effluent •Segregate waste packaging inprocess to avoid manual sorting for recycling •Utilize all materials in containers and drums •Utilize only two-sided copying •Recover and use scrap materials in the production process •Repair and reuse pallets Non-hazardous waste .
Integrate these goals into the employee performance review and compensation system Environmental Management . use and disposal during design stages •Design products for disassembly.Resource Conservation and Pollution Prevention Opportunity Product design Symptom (s) •Toxic emissions •Hazardous waste •High “engineered” scrap rates •High disposal costs •High pollution control costs •Employee exposures to hazardous materials Root Cause (s) •Product design •Materials specifications •Specifications of virgin material use only •Lack of consideration on environmental impacts •Poor planning •Lack of knowledge of the process •Inadequate measurement systems •Incomplete job instructions Corrective Action Suggestions •Provide suppliers with performancebased rather than prescriptive specifications for products •Specify the use of recycled-content in products •Consider environmental and human health impacts of manufacturing. recycle and reuse •Provide job instructions in the correct amounts of materials to use and proper waste recycling procedures •Post information for employees to increase awareness of the cost and environmental impacts of waste •Establish environmental policies and goals.