Understanding8AreasofWaste:

IntroductiontoLeanPrinciples

History:

HenryFordcreditedwithstartingoriginal
movement
KiichiroToyodaandTaiichiOhno:1930s
developedtheToyotaProductionSystem.
PopularizedbyJimWomack,authorofLean
Thinking,TheMachinethatChangedtheWorld
andLeanSolutions

ProcessFlow:

Lookatprocessthrough
thecustomers
perspectiveandidentify
wasteintheprocess.

DownstreamFlow
Task

TaskB

TaskC

Leanprincipleshelptoexaminebusinessprocesses
andfocusonminimizingunnecessarycosts,reducing
wasteandimprovinginefficientprocedures.
Identifiesproblemareasandbottlenecks

Increasesbusinessefficienciesmakesurestaff
timeisspentonvalueaddedactivities.

Savemoneyreduceoverheadinpaperwork

Conformtorules&regulationsandcodesof
conductstandardizingprocessesusingLean

WhatisLean?
Leanconsistsofproventoolsandtechniquesthat
focusonminimizingwastefulactivityandadding
valuetotheendproducttomeetcustomerneeds.
The8areasofwastecanbeusedtounderstandthe
inefficiencies:
Waiting

Inventory

Under

Motion

Material
Movement/
Transportation

Overproduction

Correction/
Rework
Extra
Processing

MOTION:Unnecessaryphysicalmovement

Copymachinetoofarawayfromusers

Diggingthroughstacksofpaper

Reachingforcommonlyusedtools

Misplacingequipment/items

Usingtoomanylayersforelectronicfolders

LeanTerminology/Metrics:
Nonvalueadded:Activitiesoractionstakenthataddnoreal
valuetotheproductorservice,makingtheactivityoractiona
formofwaste.
Valueadded:Activitiesoractionstakenthataddrealvalueto
theproductorservice.
IncidentalWork:Activitiesneededtostayinbusinesslegally.

AmappingmethodcalledValueStreammappingis
typicallyusedtocapturethecurrentstateprocess,
includingboththevalueaddedandnonvalueadded
steps.Valuestreammappingprovidesanoverall
viewofbusinessprocessesastheyarenow,mapping
thematerialandinformationflowsandcanbeused
tocreatethefuturestateprocessafterthe
leaninghastakenplace.

Excessiveofficesupplies
Fullinboxes(electronicorpaper)
Computerfilesneverused

OVERPRODUCTION:Producingmoresoonerorfasterthanis
requiredforthenextprocess

Printinghardcopiesofforms

Purchasingitemsjustincasetheyareneeded

Processingpaperworkbeforethenextpersonintheprocessis
ready

Preparingreportsthatarenotusedorread

Simplifyprocesses

INVENTORY:Toomuchofanythingandanyformofbatch
processing

CORRECTION/REWORK:Correctionofanyerror

Orderentryerrors

Grammarandpunctuation

Inaccuratereportsordata

Lackofstandardizedwork

Incompletecommunications

Benefits:

Systemdowntimeorresponsetime
Approvalsfromothers
Informationfromcustomers
Meetingsstartinglate
Latereports,paychecks,orprojects

UNDERUTILIZATIONOFPEOPLE

Limitingemployeeauthorityandresponsibilityfortasks

Inadequatebusinesstoolsavailable

Delayingimplementationofcomputersystemcomponents

Restrictingornotofferingtrainingontechnicalresources

WhyUseLean?

Upstream

WAITING:

InternalCustomer:Receiveroftheproductorserviceinside
theorganization,oftentheindividualdownstreamprocess.
ExternalCustomer:Receiveroftheproductorserviceoutside
theorganization.

KaizenPhilosophy:Japaneseforimprovementorchange
forthebetter.Frequentsmallimprovements,thecycleis:

Standardizeanoperation
Measurethestandardizedoperation
Gaugemeasurementsagainstrequirements
Innovatetomeetrequirementsandincreaseproductivity
Standardizethenew,improvedoperations

LeanMetrics:
1.
2.
3.
4.

ProcessTime(P/T)actualtouchtimeofoneworkitem;exclude
interruptions
DelayTime(D/T)timeworkitemisdelayedornottouched
LeadTime(L/T)starttimetofinishtime;L/T=P/T+D/T
%CompleteandAccurate(%C/A)%ofworkenteringaprocessthatis
completeandaccurate.

DesignedbyAlexisNaiknimbalkar,CSUQualityInitiatives,
permissionrequiredforduplicationoutsideoftheCSUsystem(anaik@calstate.edu)

MATERIALMOVEMENT/TRANSPORTATION(transporting,sorting,
orarrangingitemsunnecessarily)

Filingpapersthatwillneverbeusedagain

Stockpilingsuppliesfarfromtheirpointofuse

Buryingextrasuppliesindrawersorstorerooms

Requiringmultipleapprovals

HandDelivery

Latereports, paychecks,orprojects
EXTRAPROCESSING:Extramentalorphysicalnonvalueadded
steps

Producingrepetitivedocumentsfromscratch

Poorfilingsystem

Lackofvisualcontrols

Toomanyapprovalsrequiredforaction

Unclearreports/memospublished

Reviewingadocumentmultipletimestodetermineaction

Meetingswithoutagendasforaction

WASTEWALK

5SORGANIZATIONSYSTEM

TooltoorganizespacesandintroduceLeanconcepts

Auditquestionstodeterminepainpointsin
anareatobeLeaned

WAITING

1. Arethereexcessivesignaturesorapprovalsrequired?

2. Istheretoomuchdependencyonotherstocompletea
task?

3. Aretheredelaysinreceivinginformation?
4. Aretherecomputerprogramversionproblemscausing
delays?

5. Systemdowntimeorresponsetimecausingdelays?
6. Aretherecrossdepartmentalresourcecommitment
issues?

INVENTORY

1. Arefiles(orwork)awaitingexcessivesignaturesor
approvals?

1. Aremakingextracopies,morethanneeded?
2. Areweprinting,faxing,emailingmorethanwhatis
needed?

SORTWhenindoubt,sortitout!

Excess/unneededequipment,tools,furnitureinarea

3. Areweenteringrepetitiveinformationonmultiplework
documentsorforms?

Askquestionsaboutuse

___Unneeded/outdateditemsonwalls

SetCriteriaforsorting

___Itemsarepresentinaisleways,corners,etc.

4. Areweorderingmoretestsorservicesthanwhatis
requiredbythecustomer?

Placeitemsinholdinguntilallhavehadachance
toreviewitemsbeingdiscarded

___Excess/unneededinventory,supplies,materialinarea

5. Arewepurchasingitemsjustincasetheyareneeded?
6. Arewepreparingreportsthatarenotusedorread?
7. Arewehavingmeetingswithoutthenecessary
informationforaction?

MOTION

SETINORDERAplaceforeverythingand
everythinginitsplace!

___Correctplacesforitemsarenotclearlymarkedorlabeled

Identifylocationforitems

___Aisleways,workplace,equipmentlocationsarenotmarked

Relocateditems
Logicaldesignflow

4. Arewepurchasingexcessivesuppliesofanykind?

2. Areyousearchingforworkdocuments(files)incabinets
and/ordrawers?

5. Dowehaveanyobsoletefiles(electronicorhardcopy)in
thearea?

3. Areyouconstantlyreviewingthesamemanualsfor
information?

6. Dowehaveobsoleteequipmentinthearea?

4. Areyouhandcarryingpaperworktoanotherprocessor
departmentregularly?

2. Arefilesawaitingtaskcompletionbyother?
3. Aretheredelaysinreceivinginformation?

7. Istherebatchprocessingoftransactionsorreports?

5. Areyoumisplacingequipment/items?

MATERIALMOVEMENT/TRANSPORTATION

2. Canweassistotherareaswhenworkisslowinanarea?

1. Areyoudeliveringdocumentsthatarenotrequired?

3. Canwebetrainedtodomorewithintheorganization?

2. Areyoudoingexcessivefilingofworkdocumentsorfiling
documentsthatwillneverbeusedagain?

5. Areyourestrictingornotofferingtrainingontechnical
resources?

6. Areyoudelayingimplementationofcomputer
componentsorsoftware?

CORRECTION/REWORK
1. Dowehaveanydataentryerrors?
2. Dowehavepricing,quoting,billing,orcodingerrors?

3. Doweforwardpartialdocumentation?
4. Doweeverlosefilesorrecords?

5. Doweeverencounterincorrectinformationona
document?

6. Istherealackofstandardizedwork?

SHINEInspectionthroughcleaning!

___Floors,walls,stairs,andsurfacesaredirty

Clean

___Equipmentisdirty

Organizeloosecords

___Appropriatecleaningmaterialsarenotavailableinarea

Replacedamageditems

3. Areyourequiringmultipleapprovals?
4. Areyouhanddeliveringitemsthatcanbesentin
interofficemail?

EXTRAPROCESSING
1. Areweproducingrepetitivedocumentsfromscratch?

___Lines,labels,signs,etc.aredirtyandhardtosee
___Othercleaningproblemsarepresent

STANDARDIZEEverythinginastateof
readiness!

___Standardstomaintainsortandsetinorderdonotexist

Rulestomaintainandcontrolsystem(checklist,audits,
andvisualcontrols)

___Standardsarenotvisibleintheareaandknowtoareastakeholders

Minimumandmaximumlimits

___Quantitiesandlimitscannoteasilybeseen

Quickreferencechecklist

___Itemsneededtodojobfunctioncannotbelocatedin30seconds

___Checklistforallcleaningandmaintenancejobsdonotexist

___Workersinareahavenotbeentrainedin5S

3. Istherealackofvisualcontrols?

SUSTAINTraining,reinforcementand
measurement!

4. Arewetoomanyapprovalsrequiredforaction?

Communicateimportance

___Personalbelongingscannotbeeasilystored

5. Areweenteringrepetitiveinformation?

Trainonrules

6. Arewedoingmoreworkthanisrequiredforthat
process?

Sharesuccessinmeetings

2. Dowehaveapoorfilingsystem?

Effectivevisualcontrols

___Heightandquantitylimitsarenotclearlymarked

Placesmallitemsontraysforeasycleaning

1. Areweinpositionsweweretrainedtodo?

4. Arethebusinesstoolsadequateforthejob?

___Itemsarenotputawayimmediatelyafteruse

UNDERUTILIZATIONOFPEOPLE

___Itemsarenotmarkedorlabeledwithreturnaddresses

Usevisualcontrolslabels

6. Areyoureachingforcommonlyusedtools?

Ratings:Noproblems0,1problem1,2problems2,
3problems3,and4ormoreproblems4.
Goalistohavealowtotalnumber.Correctproblemsimmediately.

Sort,SetinOrder,Shine,Standardize,Sustain

OVERPRODUCTION

1. Areyousearchingforcomputerfilesonyourdesktopor
usingtoomanylayersforelectronicfolders?

Auditquestionsfor5Sarea.

Descriptionofconducting5S
improvement:

DesignedbyAlexisNaiknimbalkar,CSUQualityInitiatives,
permissionrequiredforduplicationoutsideoftheCSUsystem(anaik@calstate.edu)

___Daily5Swasnotdonethisweek

___5Schecklist/standardsarenotavailableoruptodate
___Scheduled5Sauditshavenotbeencompletedthisweek