value adding optimize necessary but not value adding minimize non value adding = waste 5% 35% 60%...

Download Value adding Optimize Necessary but not value adding Minimize Non value adding = WASTE 5% 35% 60% Primary focus of “traditional” efficiency improvements

If you can't read please download the document

Post on 12-Jan-2016




1 download

Embed Size (px)


  • Value addingOptimizeNecessary but not value addingMinimizeNon value adding = WASTE5%35%60%Primary focus of traditional efficiency improvementsPrimary focus of LEAN improvementsAttack the NVA first and reduce the NVA through further improve & eventually eliminate it completely. A process in general has around 95% Waste in the form of NVA. War on 8 Wastes

  • Waste of OverproductionWaste of InventoryWaste of TransportationWaste of WaitingWaste of MotionWaste of ProcessingWaste of Defects & ReworkWaste of Employee Creativity War on 8 Wastes

  • All alphabets are showing a kind of WasteD - DefectsO - OverproductionW - WaitingN - Needless ProcessingT - TransportationI - InventoryM - Motion E - Employee CreativityWar on 8 Wastes

  • Definition Producing more than is needed, faster than needed or before it is neededCauses:Poor PlanningJust-in-case ProductionPoor communicationsProcesses which cannot consistently produce the Quantity or Quality requiredLengthy Set-up and Cycle timesLocal Optimization (Production that primarily benefits a single departments interests)Poor equipment reliabilityOverProductionTransportationWar on 8 Wastes

  • Examples: Irregular flow of Production Production above target Excessive lead time Delivery too early Shortage of Storage spaceSolution: Implement Pull systems (Supermarkets) Connect to customer Synchronize departments for information sharingWar on 8 Wastes

  • Definition Any supply (Materials or Goods) in excess of what is required to deliver products in a Just-In-Time Manner.Causes:Poor Sales Forecasting so is Inventory Planning/TrackingLong Process Setup and Cycle TimesUnbalanced Production ProcessesInconsistent Processes or SuppliersWar on 8 Wastes

  • Examples:Inventory exceeding specified quantity limitHigh inventory at workplaces doubles the handlingExcessive safety stockShortages at critical assembly lineSolution:Littles Law states: WIP (Work In Process) is = Production rate (or rate of product arrivals) x Lead timeBatch sizing or Lot Levelling Kanban or e-Kanban And SupermarketVisual Inventory IndicatorsWar on 8 Wastes

  • Definition Any material movement that does not directly support immediate productionCauses:Improper facility layoutLarge buffers and In-process KanbansLarge lot purchasingPoor production planningPoor schedulingPoor work place organizationInadequate material handling equipmentNo clear signals givenProduction rate is different than dispatchWar on 8 Wastes

  • Examples: Machining Area too much congested with Other Matl. All movements by forklift compels waiting Big Container for small-size Material Double handling for single operation ConveyorsSolution: Small-wheeled containers should replace forklifts Spaghetti Diagram & Problem Solving techniques U shaped cells with input & output demarcation Point of Use StorageWar on 8 Wastes

  • Definition Idle time that occurs when Operator/ Process/ Operation/ Machine cannot proceed with the next taskCauses:Poor equipment maintenanceLack of proper equipment/materialsLong setup time or high changeover Lack of cross-skill exchangeUndocumented, non-standardized work methodsProduction bottle necks Unbalanced production lineUneven distribution of trainingWar on 8 Wastes

  • Examples:Waiting for material to be unloaded at workstationOperators slower than the production lineOperators watching machines working on a componentLate delivery of schedule to be followedQueuing at a tool cribSolution:Reduce queue sizeVisual production planning displayTraining within Industry (Job Methods & Description)Tools near the workstationLean Cells for Multi-machine Single OperatorWar on 8 Wastes

  • MotionWaitingCauses:Ineffective equipment, office and plant layoutLack of Visual controls (Printed schedules, production plans, etc.)Poor process documentationPoor work place organizationImproper structural arrangementMachine layout is as per the work processes Atmosphere is not labor-friendly (too hot/cold)Unsafe work conditions (without PPE) Definition Any movement of people which does not contribute added value to the product or serviceWar on 8 Wastes

  • War on 8 Wastes

  • Examples:BendingReaching out for the toolsDouble handling at the workplaceMore than two turns to grab a nutWalking between widely spaced work centersSolution:Identify, eliminate, and control workplace through operatorsSpaghetti diagramErgonomics (Scientific workstation)Reduce the turns, bends, searches, picks for an operationWar on 8 Wastes

  • MotionProcessingWaitingCauses:Processing design decisions made at inappropriate levelsPoorly documented processesLack of customer input concerning requirementsPoor configuration controlBogus quality standards (Not related to customer)No estimation of Voice of CustomerUndue reference to old designsWrong versionDefinition Unnecessary effort (production or communication) which adds no value to a product or serviceWar on 8 Wastes

  • Examples:Variation between skills of the operatorsVariation from standardRework goes unaccountedDefects being reprocessed, only to create more wasteHaving to use a fast machine shared between several linesSolution:Think small is beautiful. Smaller machines avoid bottlenecks, improve flow lengths, can be maintained at different times, and may improve cash flow while keeping up with technologyGenerate Voice of Customer Account all operations with the customer requirementsWar on 8 Wastes

  • MotionDefectsProcessingWaitingCauses:Too many product modelsHigh inventory levelsInadequate tools/ equipmentPoor employee trainingPoor layouts/ Unnecessary handling (Transport damage)Poor process documentationProcesses which cannot consistently produce the Quantity Or Quality requiredIrregular feed & speed of machinesNon-Standard quality assurance and control Definition Costs associated with the sorting, repairing and/ or reworking products as well as materials which have been scrapped due to defectsWar on 8 Wastes

  • Examples:Scrap generated Rework due to irregular dimensionsLess than perfect yield accepted by productionOff-cut stashed away for future useCustomer complaints go un-noticedSolutions:Prevention prior to detectionQuality at source online qualityChain of Quality/House of QualityUse of Andon must be encouragedAutonomation (Jidoka)War on 8 Wastes

  • MotionDefectsProcessingEmployee PotentialWaitingCauses:Poor recruitment not as per JD Irregular production urgenciesPoor communication (people kept in dark)Poor employee policies (non-inclusive) Lengthy decision process on improvementsLopsided culture, in favor of just one group at work Poor equipment/Tool/Material handlingBlurred task significance Monotonous tasks (zero Task variety)Autonomy of employees is not in sync with Business Objective and the Shared VisionDefinition Putting more or incompetent people on a job than is needed, Tasks are not assigned as per the Abilities, Unique people competencies go unseen or misusedWar on 8 Wastes

  • Examples: Continuous Improvement ideas are ignored Production is the only priority Excessive/Recessive work load month end syndrome, catering to emergencies/fire-fighting Involvement in process is not appreciated Absence of reward and punishmentSolution: Implement systems for people through Lean Kaizen Workshop Connect everyones role with the Business objective and Shared vision - Create opportunities for Leadership & Personal growth Synchronized space for expression of Employee Creativity with daily work with apt AppreciationWar on 8 Wastes

  • When you cant go under, go Over it. When you cant go left, go by right. If you cant get an angle, get two plates and weld it.Throw out all your fixed ideas about how to do things.Think of how the new method will work-not how it wont.Dont accept excuses. Totally deny the status quo.Dont jump to perfection. (A 50 % implementation rate is fine as long as its done on the spot.)Spend very little money on improvement.Problems gives you a chance to use your brain.10 brains are better than one persons excellence. Improvement knows no Limits. War on 8 Wastes



View more >