1.Motion 2.Transportation 3.Waiting time 4.Overproduction 5.Processing time 6.Defects 7.Inventory


Characteristics: • Extra carts, fork lifts, dollies • Multiple Storage Locations • Extra Material Racks • Complex Inventory Management • Extra Facility Space • Incorrect Inventory Counts • Damaged Material
Causes: • Large Lot Processing • Unleveled Schedules • Lack of 5 S’s • Lack of Visual Controls • Improper Facility Layout • Large Buffers and In Process Kanbans

Characteristics: • Looking for Tools • Excessive Reaching or Bending • Material Too Far Apart (Walk Time) • Equipment for Moving Parts • Extra “Busy” Movements While Waiting

Causes: • Equipment, Office & Plant Layout • Lack of 5 S’s • Lack of Visual Controls • Inconsistent Work Methods (Standardized Work) • Large Batch Sizes

Waiting time
 Waste that results from customer orders, inventory, or

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completed products waiting in queue for a process to begin. High inventory encourages higher product waiting time Operator waiting time implies under-utilization and poor control of workflow Reduces value for customers Increases delay to obtain financial return on the product


Waiting time continued…
Characteristics: • Man Waiting for Machine • Machine/Materials Waiting for Man • Unbalanced Operations (Work) • Lack of Operator Concern for Equipment Breakdowns • Unplanned Equipment Downtime Caused due to:  Inconsistent work methods  Long machine change over time  Low man/machine effectiveness Results :  Long lead times  Wasted floor space  Increased damage  Potential obsolescence  Misplaced items  Demoralized workforce  Ineffective use of time  Ineffective production planning


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The production of goods in excess of absolute consumer requirements Manufacturing too much or too early or “just in case” Discourages a smooth flow of goods and services Leads to excess inventory Producing more than needed, producing faster than needed Inventory Stockpiles Extra equipment/oversized equipment Unbalanced Material Flow Extra Part Storage racks Extra Manpower Batch Processing Complex Inventory Management Excessive Capacity/Investment Excessive Obsolescence Incapable processes Just in case reward system Lack of communication Automation in the wrong places Low uptimes

• • • • •

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Processing time
 Effort Which Adds No Value To a Product or Service.  Results from steps in production processes that do not contribute value or create too much cost

Characteristics: • Process Bottlenecks • Lack of Clear Customer Specifications • Endless Refinement • Redundant Approvals • Extra Copies/Excessive Information Causes: • Engineering Changes Without Processing Changes • Decision Making at Inappropriate Levels • Inefficient Policies and Procedures • Lack of Customer Input Concerning Requirements


 Reduce or discourage customer

satisfaction  Defects have to be rectified  Rectification costs money with regard to time, effort and materials  Loss of customers


Inventory waste
Waste that consists of excess inventory over and above that which is necessary.  It increases costs and lead times  Reduces quality and flexibility Characteristics: • Extra Space on Receiving Docks • Material Between Processes • Stagnated Material Flow • LIFO instead of FIFO • Extensive Rework When Problems Surface • Long Lead Time for Engineering Changes • Additional Material Handling Resources (Men, Equipment, Racks, Storage Space) Causes: • Incapable Processes • Uncontrolled Bottleneck Processes • Incapable Suppliers • Long Change Over Times • Management Decisions • Local Optimization

The Toyota Production System was adopted by many Japanese companies in the aftermath of the 1973 oil shock “Waste” Elimination Philosophy: “.. Above all, one of our most important purposes was increased productivity and reduced cost. To achieve this purpose, we put our emphasis on the notion of eliminating all kinds of unnecessary functions in the factories. Our approach has been to investigate one by one the causes of various "unnecessaries" in manufacturing operations and to devise methods for their solution, often by trial and error ...” Taiicho Ohno, Former Vice President, Toyota Motor Corp., Former President, Japan Industrial Management Association; Former Chairman, Toyoda Spinning and Weaving Co., Ltd.


Philosophy  Identification and elimination of waste is the central theme of a lean manufacturing production system  Lean manufacturing is a dynamic and constantly improving process dependent upon understanding and involvement by all employees  Successful implementation requires that all employees must be trained to identify and eliminate waste from their work  Waste exists in all work and at all levels in the organization

Excessive production resources (primary waste): excessive workforce excessive facilities excessive inventories unnecessary capital investment

Overproduction (secondary waste - the WORST waste): leads to Excessive inventories (tertiary waste): extra jobs make overproduction invisible. adds losses in opportunity cost leads to Unnecessary capital investment (fourth waste): adds facility depreciations and overhead cost


The Five Elements of 5S
SelfDiscipline/ControlEnsuring that Systematic Organization, Visual Placement & Cleanliness are maintained.

Systematic Systematic OrganizationIdentifying what items are required and which are not.

Standardizing ControlMaintain and continually improve the previous improvements. Scrubbing Clean-Keep the area free from debris, dirt, oil, items not needed.

Sorting Visual PlacementItems should be easily retrievable, easy to get, and visual-easy to see.

5 S Element

Waste/ Improvement Item


Systematic Organization

Elimination of finding. Reduction of part selection errors. Elimination of finding. Elimination of nonconformances. Elimination of motion. Reduction of part selection errors. Increased safety. Preventive maintenance. Increased equipment knowledge. Increased equipment life. Higher morale. Clean environment. Increased visibility of nonconformances. www.a2zmba.com

Sorting-Visual Placement

Reduced Costs Improved Quality Increased Product Options Reduced Costs Increased Safety Improved Quality Increased Product Options.

Scrubbing Clean

Increased Safety Improved Quality Improved Quality Consistent Delivery Improved Safety

Standardization Control

Purpose Used to create a visual picture of a work area to assess waste in work place organization, office/cell layout and crewing. Shows the type of each waste in section/division of the organization. Also utilized to indicate equipment type, size, and distances within each work area. The Waste Identification Map should be used after the 5S “To Do” plan is completed. A map should be developed for each department or focus area of the 5S program. Do not attempt to develop a single Map for an entire organization, it will become too busy to be effective. The Waste Identification Map can be used by anyone involved in continuous process improvement. The Waste Identification Map will provide information about work waste in each department, work sequence, equipment layout and distances. The Waste Identification Map not only provides actual waste, but also provides a visual layout of the interrelationship of the waste.

When To Use

Who Should Use It

Expected Benefits