1

Waste

How often have you used the expressions: That was a waste of time! or That was a waste of money! or That was a waste of effort!

Wasted Time

Just imagine if we could collect all the time together that we have wasted in the past How much time would that be?

Wasted Money

Just imagine if we could collect all the money together that we have wasted in the past How much money would that be?

Wasted Effort

Just imagine if we could collect all the effort together that we have wasted in the past How much effort would that be?

The Problem With Waste

The problem with wasted time, money & effort is:

When its gone - its gone!

Eliminating Waste

So what can we do to eliminate

waste?

We first need to identify what is &

is not waste, then we can look at ways of eliminating or at least reducing waste.

Identifying Waste in the Workplace

Operational Activity

Value added Operations

Any process that changes the nature, shape or

Examples: Stamping a bracket out of a coil of steel

characteristic of the product in line with customer requirements It transforms a product or service It is done correctly the first time It is a task or action that a customer would be willing to pay for e.g. Pressing, welding, heat treatment.
This is where we make a profit!

Identifying Waste in the Workplace

Operational Activity Non-Value added Operations Work carried out which is necessary under current conditions, but does not increase product value. Its an activity that consumes resources without directly creating value for the customer It is an activity that is unpredictable in creating value Its an activity that requires more time, effort, or resource than it has to e.g. Inspection, tool change, maintenance. This is where we make a loss!

Non-Value-Added Activities

Attributed to following factors Systemic Physical Human

Value Added and Non-Value Added operations

The objective is to raise the ratio of Value

added operations to non-value added operations and eliminate waste.

OPERATOR TIME
WASTE NON-VALUE ADDED

VALUE ADDED

ELIMINATE

MORE TIME FOR OTHER ACTIVITIES

NON-VALUE ADDED

VALUE ADDED

Cycle Time
Cycle Time ValueNon= Added + Value-Added Activities Activities

Manufacturing Cycle Efficiency (MCE)

Value-Added Processing Time Total Cycle Time

Notes

100% efficiency unrealistic Reducing non-value-added activities will increase Manufacturing Cycle Efficiency Value-added activity usually represents about 10% of total cycle time Just-in-time (JIT) increases MCE

7W The Elimination of Waste

So, now we understand the difference in

value added & non-value added operations, what are the benefits in eliminating all waste?

Reduced costs Greater Capacity Bottlenecks are identified

7W 7 Types of Waste

1 Over-production

2 Inventory
3 Transportation

4 Process
5 Idle Time 6 Operator Motion 7 Bad Quality

7W 1. Over-production

Over-production

Producing more than is needed hides a

multitude of problems. Excessive set-up times, machine faults, risk of producing obsolete stock.

7W 2. Inventory

Inventory

Carrying stock attracts cost & storage

problems. Storage leads to stacking, racking, sophisticated computers, bar coding & automation, all for an activity that adds no value to the product.

7W 3. Transportation

Transportation

This may appear unnecessary but does add

value. Large transport is easily identified but small transport such as manual labour may not be so noticeable. These can be improved by changes to the work environment.

7W 4. Process

Process

Adds cost but no value - e.g.trimming &

moulding to a level that is beyond the required standard adds extra time that customers do not want to pay for.

7W 5. Idle Time

Idle Time

Typically, waiting for products & services from

preceding operations, waiting for work from their previous set-up or waiting for cycles to finish, or meetings to start.

7W 6. Operator Motion

Operator Motion

Typically, single handed operations where

both should be used, stretching unnecessarily or awkwardly and walking between things. All of these take time or use time poorly, none add value.

7W 7. Bad Quality

Bad Quality

Rejects are always produced by systems and

procedures created by management. If operators fail it is because the process allowed them to fail through inadequate training or because the process was not capable in the first place.

7W The Elimination of Waste

So, now we understand the 7 wastes, we can:
Produce only what is needed; Carry only essential stock; Use transportation more wisely; Produce work to the standard required;

Plan our production processes;

Put our efforts to the best possible use; Train to make quality work every time!