Learning to See Waste

Everything you do in your Company is accomplished through a process.

OrderMaterials

SetupEquipment

Issue paychecks

– Even the smallest activities are accomplished through processes.

Definition :

Process: A series of actions or steps toward achieving a particular end.

1. Scope Starting point and ending point.

2. Purpose: Reason why it is being performed.

3. Steps: Actions performed by operators or equipment.

4. Sequence: Order in which the actions are performed.

5. Operators: Operators or equipment that perform the actions.

6. Outcome: A specific result, product or state.

7. Customer: Next process, requestor or end user.

Characteristics :

TYPES OF

WASTE

Over-Production

Over

Processing

MaterialMovement

Waiting

Inventory

Correction

Motion

+ Underutilization of Employees !!!

Taichi Ohno’s Seven Forms of Process Waste

Some CausesLarge Batches

Poor CommunicationLong Changeover Time

Low UptimesLack of Consistent Schedules

Forecasts vs. Customer Demand

Definition: Producing More

Than Needed Producing Faster

Than Needed Producing Sooner

than Needed

Some CharacteristicsInventory StockpilesExtra Racks, ContainersBuilding AheadLong Lead TimesExtra / Oversized EquipmentUnbalanced Material FlowExcessive Capacity / InvestmentSafety Concerns

Some CausesIncapable ProcessesIncapable SuppliersInsufficient Training

Inadequate Tools / EquipmentPoor Layouts / Handling Issues

Processes Not Under ControlHigh Inventory Levels

Some CharacteristicsRepair and Rework AreasIncreased InspectionMissed Shipments / DeliveriesPoor Customer / Supplier RelationsReactive OrganizationLost CapacityScrapPremium FreightReactive Organization

Definition:Repair of a Product or Service to Fulfill Customer Requirements

Some CausesLarge Lot Processing

Inconsistent SchedulesLong Changeover Times

Lack of Work Place OrganizationImproper Facility Layout

Excess Inventory

Definition: Inconsistent Material

Flow. Unnecessary Movement

of Parts.

Some CharacteristicsMultiple Storage LocationsComplex Material FlowsWasted Floor SpaceLarge Tanks & WarehousesInventory ErrorsUnbalanced Drive ScheduleHeavy Duty Barriers & Protection Devices

Definition:Effort Which Adds No Perceived Value to a Product/Customer.

Some CharacteristicsBottlenecksLack Boundary Samples or Clear Customer SpecificationsEndless RefinementRedundant ApprovalsExtra Copies / Excessive Information

Excessive approvalsRedundant processes

Reports with too much informationReports that you don’t use

Some CausesEngineering Change w/o Process Change

Decision Making at Inappropriate LevelsIneffective Policies & Procedures

Lack of Customer Input Concerning Requirements

EngineeringChanges

Some CausesIncapable Processes

Uncontrolled BottlenecksIncapable Suppliers

Long Changeover TimesLocal Optimization

Inaccurate ForecastsSub-optimized Raw Material Ordering

Efficiency Measures

Definition: Any Supply in Excess

of Customer Requirements.

Any Supply which is not having value added to it.

Some CharacteristicsFISH instead of FIFOSMOILong Lead Time for Engineering ChangesOff Line Storage AreaExtra Material Handling Resources (People, Equipment, Racks, Storage, Tanks, Space / Systems)Slow Response to Customer Demands Low Inventory Turns

Some CausesInconsistent Work Methods

Long Machine Changeover TimesDowntime/Breakdowns

Poor Machine / People EffectivenessLack of Proper Machines

Some CharacteristicsPeople Waiting for MachinesMachines Waiting for PeoplePeople Waiting for PeopleWaiting for MaterialsUnbalanced OperationsLack of Concern for BreakdownsUnplanned Equipment Downtime

Definition: People or parts

waiting for a work cycle to be completed.

Idle time resulting when two dependent variables are not fully synchronized.

Definition:Any movement of people that does not add value to the product or service.

Some CausesPoor Housekeeping

Equipment, Office & Plant LayoutLack of Work Place Organization

Poor Machine / Operator EffectivenessInconsistent Work Methods

Large Batch Sizes

20 ft.20 ft.

20 ft.

Hint: Don’t confuse motion with work.

Some CharacteristicsLooking to Find ToolsWalking for MaterialsExcessive Reaching / BendingWalking Around ThingsMoving Thing Out of the Way Machines / Material too Far Apart

TYPES OF

WASTE

Over-Production

Over

Processing

MaterialMovement

Waiting

Inventory

Correction

Motion

Can you spot examples in your work area?

+ Underutilization of Employees !!!

Value Stream Mapping:A descriptive analysis that helps you to see and

understand the complete flow of material and information towards the final product.

“Whenever there is a product for a customer, there is a value stream. The challenge lies in seeing it.”

Womack and Jones

Why is Value Stream Analysis so important for Lean Processing?

Supports process thinking.

Takes a big picture view – improve the whole vs optimize individual steps.

Shows the connection of material, people, and information flows.

Standard for management to document the whole process.

Single value stream – factory order to ship Multi-value stream – order to cash Enterprise value stream – design, sales,

order, produce, ship, bill

Supplier Customer

Raw-materialinventory

Finished-goodsinventory

Productdelivery

Supply-chaindataRaw-

materialshipments

Product-demand

data

Process 1data

Process 2data

Process ndata

Inventoryquantity

Inventoryquantity

Inventoryquantity

Inventoryquantity

I I

Raw-materialinventory

Finished-goodsinventory

I IProcess 1 Process 2 Process n Shipping

Supplier Customer

Productdelivery

Supply-chaindata

Demand-pattern

data

Process 1data

Process 2data

Process ndata

Inventoryquantity

Inventoryquantity

Inventoryquantity

Inventoryquantity

Production control

Productionschedule

Productionschedule

Productionschedule

ForecastsRaw-MaterialForecasts

Orders

Raw-materialorders

Raw-material

shipments

I I

Raw-materialinventory

Finished-goodsinventory

I IProcess 1 Process 2 Process n Shipping

NVANVAVA VA VA

NVAVA

NVA

Totals

Completed Future-State Map

Supplier Customer

Productdelivery

Raw-materialsupermarket

Process 1 Process 2 Process n ShippingProcess 3

SupermarketIP kanbanChangeover Downtime

Std WorkScrap

Std WorkStd WorkStd WorkStd Work

C/T reduction

Prod ControlDaily orders Daily orders

CustomerrequirementRaw-

materialshipments

max. 5 pieces

FIFO

max. 5 pieces

FIFO

Supplier Customer

Productdelivery

Raw-materialsupermarket

Finished-goodssupermarket

Process 1 Process 2 Process n ShippingProcess 3

SupermarketIP kanbanChangeover Downtime

Std WorkScrap

Std WorkStd WorkStd WorkStd Work

C/T reduction

Prod ControlDaily orders Daily orders

CustomerrequirementRaw-

materialshipments

Customer LoopSupplierLoop

Process Loop 1 Process Loop 2

Current-statemapping

Lean future-state design

Implementationplanning & execution

Map the current value stream showing the material and information flows

Measure / observe lean-implementation process data

Identify Opportunities for Improvement Design the future lean state Map future-state material & information

flows

Segment the flow into “loops” for implementation planning Develop implementation plan with schedule, owners and

measurable milestones and results Execute plan

Top-Level Mapping, Lean Design and Implementation Process Map

Brown Papers Spaghetti Diagram (product, people &

information movement) Swim Lane Standard Work Layout

Describes a process in a more informal way

Usually done in groups or teams

Shows the “big picture”

Is high touch, low-tech

Identifies strengths and opportunities

Captures the complexity and disconnects of key operational issues

Gets stakeholders involved in process

Yes (10%)

No (90%)

•

•

•••

•

• •

No (70%)

Yes (30%)

Order Scheduling Process

Strengths

• ----• -----• ------• ---

Receive copy of Customer Order Report

Customer OrderPrioritization Process

Print machine schedule

Develop labor rqmts for schedule

OT Graph

OTRequired?

OvertimeScheduling Process

2

1

Call Area Manager to schedule overtime

Enter orderinfo. into scheduling system

Orders>

Capacity?

Enter laborrqmts intoscheduling system

Opportunities

1. ----------------------

2. -----------------

Builders:

Reviewers

Print schedule and distribute

1 - 2 hours 2 hours 1 hour .5 - 4 hours

Time = 88 Days From Request to Configured-to-User … Suppose the “Users” Were Satisfied?

Frictional Interfaces Too Many Steps Lots of Rework

“Brown Paper” Flow Chart

New (“To-Be”) Flow

Time = 11 to 17 Days (varies w/user needs)

Saved US$1.3M; 784K Was Annual Labor

Flow Simplified

Standardized Configurations

Steps Removed

Friction Removed

Decisions Pushed to Lowest Level

Real Benefits From One BE Event Real Benefits From One BE Event including Robust Follow-Up & including Robust Follow-Up &

Sustainment Sustainment

Inspection

FinalAssembly

Sub-Assembly

MaterialControl

Part Number 001Process Flow Diagram

ReviewSchedule Release Kit

Check Kit Complete? Yes

No

Correct Kit

Sub-assembly

Step 1

Sub-assembly

Step 2

FinalInspection

Correct?

In-processInspection

Correct? Yes

FinalAssembly

Step 1

FinalAssembly

Step 2

No No

Send ToStores

Yes

No No

Business Travel Expense Reporting Gathers

receipts Enters in Excel

spreadsheet Tapes receipts

to printer paper

• Prints 2 copies of Excel Spreadsheet

Photocopies Excel spreadsheet and receipts.

Puts Expense Report in outgoing mail. Files 2nd copy.

Mail goes to Accounting. AP clerk opens and sorts mail. AP clerk verifies numbers,

receipts and policy compliance on Expense Report. 25% are returned for correction.

AP Clerk puts in mail to Payroll.

Payroll enters data into payroll system.

Payment appears on employee’s next check.

Sales Accounting

Payroll

Time LineVANVA

$

$

Accounts Payable

Information Systems

Sales

CollectsReceipts

Receipts

Enters expenses in Excelspreadsheet.

Prints 2copies of

spreadsheet

Receipts

Pastesreceipts on

printer paper

PhotoCopies

Receipts

Payroll

10 min 20 min 3 min 5 min 3 min

Time LineVANVA

$

$

Accounts Payable

Information Systems

Sales

Combinesspreedsheet& receipts.

ExpenseReport

Sends 1 copyto AP & filesbackup copy.

ExpenseReport

ExpenseReport

AP In- Box

Sorts ExpenseReports forprocessing.

ExpenseReportExpense

ReportExpenseReport

Verifies math,receipts & policy

Payroll

5 min3 min

300 min 12 min 10 min

Time LineVANVA

$

$

Accounts Payable

Information Systems

Sales

Expense ReportAccepted?

Revise &Return

Approve ER forPayment &

Send to Payroll

Enters ER in PayrollSystem

PR In- Box

Pay to$

Paycheck

Payroll

2 min0 min / 480min

Yes

No

300 min2 min

Totals

670 / 1150 min5 min

Focus on the physical work steps that are performed, not the outputs.

Maps do not loop back because the time marches on.◦ The customer is still waiting for the output. ◦ Work time cannot be erased and redone.

Gather factual data based on current observations.