Lean Methodology and The 8 Forms of Waste

NYBPP Meetup (9/27)

Agenda

I. The 8 Forms of Waste■ Muda: 8 Wastes■ Value-Add vs Non-Value-Add: Identifying Waste■ Summary

II. Q&A■ What if waste in a process is required by policy or regulation?■ Is waste always going to be the same in every process?■ How would you identify and eliminate “bugs” in a process - is that a

form of waste?■ How does time relate to waste?

The 8 Forms of Waste Meetup Highlights

Knowing what waste is, and being able to recognize it in its 8 major forms,

helps us identify opportunities for improvement

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Lost Opportunity

Idle timeRework

InspectionOvertime

Defects

(less obvious)

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Summary• Process Improvement is largely the identification and removal of waste

from processes.

• What is waste must be qualified from the perspective of what adds value to a process (e.g. what a customer is willing to pay for) versus what does not add value.

• The 8 most common types of waste (TIMWOODS) are not the only types of waste, but address the majority of waste in professional and personal processes.

• Once identified as actual waste, projects and process redesign should be thoughtfully considered to effectively remove it from the process.

Q&AAnswering questions from the Meetup

What if waste in a process is required by policy or regulation?

Sometimes waste is required in a process. These process elements are called “Non Value Add - Business Required”.

● Just because something is waste doesn’t mean it can be removed from the process.

● In the case of waste that must be a part of the process (such as government regulated safety or audit requirements) the goal is to remove as much non-required waste around the requirements and reduce the cost of such waste overall.

● There are also times where the cost of penalties are cheaper than the waste incurred by the process - always think about cost versus benefits!

Is waste always going to be the same in every process?

No, it depends!

Waste in one process can be value adding in another - it all depends on what the customer wants to pay for.

For instance, transportation is a waste that varies greatly between processes. There are times when a customer will want to pay for the transportation of a product, and other times where moving around product is wasteful and will not be something the customer will pay for - it is always context specific!

How would you identify and eliminate “bugs” in a process - is that a form of waste?

“Bugs,” or errors, are typically a form of variation in processes which may not be a form of waste themselves, but which typically result in a product with defects - which is a form of waste.

In general, the bugs must be analyzed to identify their root cause, and determine whether their appearance in the process results in product variation that either: a) makes the product non-viable, or b) reduces quality to a point where the customer would not pay for the product.

Ultimately, bugs can be considered a symptom, not a root form, of waste

How does time relate to waste?

Time is an important factor in analyzing waste and is a layer that sits on top of any process.

Many processes could be considered to have no waste unless a time variable is applied. While a process element is not inherently wasteful, if it is not done in a time effective manner, this can result in extra cost, which then points to another form of waste that is slowing things down.

For example, processing a product in a certain way can seem efficient, but if it takes too long and customers become dissatisfied, the process must have another root form of waste that needs to be determined and changed.

THANK YOU FOR COMING!

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