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Lean Service Waste Identification. 6/26/2007. Manufacturing Value-Added. The difference between the cost of inputs and the value or price of outputs. Value added. Inputs. Outputs. Transformation/. Mat’ls. Goods. Conversion. Equip. Services. process. Capital.
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Lean Service Waste Identification 6/26/2007
Manufacturing Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Mat’ls Goods Conversion Equip. Services process Capital Feedback Control Feedback Feedback Design Kaizen
Manufacturing Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Mat’ls Goods Conversion Equip. Services process Capital Materials / Products Information Design Kaizen
Environment People Methods Lean Mfg Measurement Equipment Materials Design Kaizen
Lean ManufacturingTypes of Waste • Overproduction • Waiting • Transport • Extra Processing • Inventory • Motion • Defects Design Kaizen
Environment People Methods Lean Design Measurement Equipment Materials Design Kaizen
Service OperationsTypes of Waste Because there is a different focus in service ops in order to add value, the wastes come in different forms. Design Kaizen
Service Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Info Designs Conversion Knowledge Services process Time Information Information Design Kaizen
Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Info Design Conversion Knowledge Drawing process Time Feedback Control Feedback Feedback Design Kaizen
Environment People Methods Lean Design Measurement Resources Information Design Kaizen
Lean ServiceTypes of Waste • People • Processes • Information • Resources • Measurements • Environmental Design Kaizen
Lean ServicePeople Wastes • Goal Alignment • Assignment • Waiting • Motion • Processing Design Kaizen
Lean ServiceProcess Wastes • Control • Variation • Tampering • Strategic • Reliability • Standardization Design Kaizen
Lean ServiceProcess Wastes, continued • Suboptimization • Scheduling • Work-around • Uneven flow • Inspection • Errors Design Kaizen
Lean ServiceProcess Wastes – Causes of Errors • Lack of knowledge, skills, or ability. • Mental errors – slips and mistakes. • Sensory overload • Mechanical breakdown • Distractions • Loss of memory • Loss of emotional control After LEMJ, GOAL Design Kaizen
Lean ServiceInformation Wastes • Inaccurate Information • Hand-Off • Communication Process Breakdown • Translation • Missing Information • Irrelevancy Design Kaizen
Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen
Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen
Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen
Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen
Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen
Lean ServiceResource Wastes • Inventory • Capital equipment • Movement Design Kaizen
Lean ServiceEnvironmental Wastes • Leadership • Physical • Emotional • Business Design Kaizen
Lean ServiceLeadership Wastes • Focus • Structure • Discipline • Commitment • People Development Design Kaizen
Characteristics of Good Measures • Personal Impact – The causes that affect the outputs are under the control of the people or team who are responsible. • Immediacy – There is little time between changes in the inputs and changes in measured performance. Design Kaizen
Characteristics of Good Measures • Proximity – The measure is closer to the performance of the process. • Causality – Measure assesses a cause rather than an effect. • Proportionality – Changes in the measure are proportional to changes in performance. Design Kaizen
Characteristics of Good Measures • Customer Focus – Measure reflects performance relative to customer requirements. Design Kaizen
References • Office Kaizen by William Lareau • The Lean Enterprise Memory Jogger, GOAL QPC. Design Kaizen