Identification of Waste

Input Transformation Output

(Resources)

Energy Products
People Services
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 processs value added
content
 Identification of Waste
Input Transformation Output
(Resources)

Energy Products
People Services
Capital
Water
Materials
Tools
 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 doesnt add value to the
process
Anything that doesnt help create
conformance to the customers
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 Root Causes

Complex tracking systems Product complexity

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
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. Interest expense associated with working capital:
Requirements to produce goods:
People, materials, facility, know-how, customers
An organization + working capital

Working Capital = Cash + Inventory + Accounts Receivables Accounts Payables

- collect faster
- defer payments
- 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, bins, containers, indirect labor to move/store the inventory
Administrative effort and cost to control the inventory (losses, locating and
counting)
 Why We Want To Reduce Inventory
3. Inventories deteriorates, causing more scrap and rework:
Metal rusts
Lubricants dry out
Materials accumulate dirt
4. Inventory takes up space:
Adds cost to heal, light, and insurance
Facilities should be used for Value-added activities (i.e. production rather that
warehousing)
5. 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.
 Why We Want To Reduce Inventory

6. Reduce scrap / rework.

When defect is detected, the entire inventory has
to be scrapped, reworked, and/or sorted.
 WASTE of Overproduction
Definition: Producing more than needed
Producing faster than needed

Symptoms Root Causes:

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
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
 WASTE of Correction
Definition: Any supply in excess of customer requirements necessary
to produce goods or services just-in-time

Symptoms Root Causes:

Rework, repairs and scrap
Added inventory costs
Customer returns
Loss of customer confidence
Loss of business
Missed shipments / deliveries
Hazardous waste generation
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
 WASTE of Material and Information
Movement
Definition: Any material or information movement.

Symptoms Root Causes:

Extra handling Mislocated materials

Extra handling equipment Unleveled scheduling
Extra inventory Unfavorable facility layout
Large storage areas Redundant inspections
Over-staffing Poor workplace organization and
Reduced quality housekeeping
Extra paperwork Poorly managed waste streams
Extra hand-offs Unbalanced processes
Transport of disposal Supply chain management
Excessive energy consumption
Excessive emissions
 WASTE of Processing
Definition: Effort which adds no value to the product or service from the
customers perspective.
Symptoms
Unnecessary work
Extra equipment
Longer lead time
Reduced productivity
Extra material movement
Sorting, testing, inspection
Inappropriate use of resources
Excess energy consumption
Processing by-products
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
 WASTE of Waiting
Definition: Idle time created when people wait for machines,
people wait for people, machines wait for people,
and machines waiting on machines

Symptoms Root Causes:

Under-utilization of resources
Reduced productivity
Increased in investment
Idle equipment
Large waiting / storage rooms
Equipment running, not producing
Unnecessary testing
Unbalanced workload
Unplanned maintenance
Long process set-up times
Misuse of automation
Quality problems
Unleveled scheduling
Ineffective layout
Specialization
 WASTE of Motion
Definition: Any movement of people or machines

Symptoms Root Causes:

Reduced productivity
Large reach / walk distances
Longer lead times
Excess handling
Reduced quality
People / machines waiting
High energy cost
Inappropriate use of resources
Poor ergonomics / layout
Machine / process design
Inconsistent work methods
Poor workplace organization and
housekeeping
Extra busy movements while
waiting
 Resource Conservation and
Pollution Prevention
Opportunity Symptom (s) Root Cause (s) Corrective Action Suggestions
Energy High utility cost Outdated Useless energy intensive method
technologies than compressed air for cooling, parts
Deficient planned moving and agitating liquids
maintenance Repair Steam and compressed air
Need for leaks
conservation Install motion detection switches or
practices lighting systems

Water High water Poor process design Re-circulate and reuse cooling water
usage Incomplete job Throttle back water valves on leak
High treatment instructions detection and overflow rinse tanks
costs Find ways to reduce water usage
Install automatic valves to stop water
flow when equipment is not being
used

transportation High fuel cost Lack of Consider fuel consumption and

Smog and consideration on tailpipe emission reductions when
pollution energy and optimizing transportation logistics
environmental
impacts
 Resource Conservation and
Pollution Prevention
Opportunity Symptom (s) Root Cause (s) Corrective Action Suggestions
Hazardous waste Hazardous Product design Utilize non-solvent-based coatings
waste Materials and cleaners
Toxic emissions specifications Purchase only non-toxic materials
High disposal Lack of and products
costs consideration of Use a metals reclamation and wash
High pollution environmental system to recover metals and reduce
control costs impacts wastewater effluent

Non-hazardous Excess material Lack of reuse and Segregate waste packaging in-
waste usage recycling procedures process to avoid manual sorting for
Excess storage Incomplete process recycling
and handling instructions Utilize all materials in containers and
High disposal Insufficient drums
costs workplace Utilize only two-sided copying
organization Recover and use scrap materials in
Inadequate the production process
education and Repair and reuse pallets
training
 Resource Conservation and
Pollution Prevention
Opportunity Symptom (s) Root Cause (s) Corrective Action Suggestions
Product design Toxic emissions Product design Provide suppliers with performance-
Hazardous waste Materials based rather than prescriptive
High engineered specifications specifications for products
scrap rates Specifications of Specify the use of recycled-content
virgin material in products
High disposal costs
use only Consider environmental and human
High pollution
control costs Lack of health impacts of manufacturing, use
consideration on and disposal during design stages
Employee
environmental Design products for disassembly,
exposures to
impacts recycle and reuse
hazardous materials

Environmental Poor planning Provide job instructions in the correct

Management Lack of amounts of materials to use and
knowledge of the proper waste recycling procedures
process Post information for employees to
Inadequate increase awareness of the cost and
measurement environmental impacts of waste
systems Establish environmental policies and
Incomplete job goals. Integrate these goals into the
instructions employee performance review and
compensation system