Define Phase Elements of Waste

1. Define PhaseElements of Waste

2. Understanding Six Sigma Six Sigma Fundamentals Selecting Projects Elements of Waste 7 Components of Waste 5S Wrap Up & Action Items Elements of Waste

3. Definition of Lean “Lean Enterprise is based on the premise that anywhere work is being done, waste is being generated. The Lean Enterprise seeks to organize its processes to the optimum level, through the continual focus on the identification and elimination of waste.” -- Barbara Wheat

4. Lean – History

5. Lean Six Sigma combines the strengths of each system: Lean Six Sigma • Lean • Guiding principles based operating system • Relentless elimination of all waste • Creation of process flow and demand pull • Resource optimization • Simple and visual • Strength: Efficiency • Six Sigma • Focus on voice of the customer • Data and fact based decision making • Variation reduction to near perfection levels • Analytical and statistical rigor • Strength: Effectiveness An Extremely Powerful Combination!

6. Perhaps one of the most criminal employee performance issues in today’s organizations is generated not by a desire to cheat one’s employer but rather by a lack of regard to waste. In every work environment there are multiple opportunities for reducing the non-value added activities that have (over time) become an ingrained part of the standard operating procedure. These non-value added activities have become so ingrained in our process that they are no longer recognized for what they are, WASTE. waste (v.) Anything other than the minimum amount of time, material, people, space, energy, etc needed to add value to the product or service you are providing. The Japanese word for waste is muda. Project Requirements for Lean Get that stuff outta here!

7. Muda is classified into seven components: Overproduction Correction (defects) Inventory Motion Overprocessing Conveyance Waiting Sometimes additional forms of muda are added: Under use of talent Lack of safety Seven Components of Waste Being Lean means eliminating waste.

8. Overproduction is producing more than the next step needs or more than the customer buys. It may be the worst form of waste because it contributes to all the others. Overproduction • Examples are: • Preparing extra reports • Reports not acted upon or even read • Multiple copies in data storage • Over-ordering materials • Duplication of effort/reports Waste of Overproduction relates to the excessive accumulation of work-in-process (WIP) or finished goods inventory.

9. Correction of defects is as obvious as it sounds. Correction • Examples are: • Incorrect data entry • Paying the wrong vendor • Misspelled words in communications • Making bad product • Materials or labor discarded during production Eliminate erors!! Waste of Correction includes the waste of handling and fixing mistakes. This is common in both manufacturing and transactional settings.

10. Inventory is the liability of materials that are bought, invested in and not immediately sold or used. Inventory • Examples are: • Transactions not processed • Bigger “in box” than “out box” • Over-ordering materials consumed in-house • Over-ordering raw materials – just in case Waste of Inventory is identical to overproduction except that it refers to the waste of acquiring raw material before the exact moment that it is needed.

11. Motion is the unnecessary movement of people and equipment. This includes looking for things like documents or parts as well as movement that is straining. Motion • Examples are: • Extra steps • Extra data entry • Having to look for something Waste of Motion examines how people move to ensure that value is added.

12. Overprocessing is tasks, activities and materials that don’t add value. Can be caused by poor product or tool design as well as from not understanding what the customer wants. Overprocessing • Examples are: • Sign-offs • Reports that contain more information than the customer wants or needs • Communications, reports, emails, contracts, etc that contain more than the necessary points (briefer is better) • Voice mails that are too long Waste of Overprocessing relates to over-processing anything that may not be adding value in the eyes of the customer.

13. Conveyance is the unnecessary movement of material and goods. Steps in a process should be located close to each other so movement is minimized. Conveyance • Examples are: • Extra steps in the process • Distance traveled • Moving paper from place to place Waste of Conveyance is the movement of material.

14. Waiting is nonproductive time due to lack of material, people, or equipment. Can be due to slow or broken machines, material not arriving on time, etc. Waiting • Examples are: • Processing once each month instead of as the work comes in • Showing up on time for a meeting that starts late • Delayed work due to lack of communication from another internal group Waste of Waiting is the cost of an idle resource.

15. Exercise objective: To identify waste that occurs in your processes. Write an example of each type of Muda below: Overproduction___________________ Correction ___________________ Inventory ___________________ Motion ___________________ Overprocessing ___________________ Conveyance ___________________ Waiting___________________ Exercise

16. 5S is a process designed to organize the workplace, keep it neat and clean, maintain standardized conditions and instill the discipline required to enable each individual to achieve and maintain a world class work environment. Seiri - Put things in order Seiton - Proper Arrangement Seiso – Clean Seiketsu – Purity Shitsuke - Commitment 5S – The Basics 5S

17. There have been many attempts to force five English “S” words to maintain the original intent of 5S from Japanese. Listed below are typical English words used to translate: 1.) Sort (Seiri)2.) Straighten or Systematically Arrange (Seiton)3.) Shine or Spic and Span (Seiso)4.) Standardize (Seiketsu)5.) Sustain or Self-Discipline (Shitsuke) English Translation Place things in such a way that they can be easily reached whenever they are needed. Straighten Shine Sort 5 S Visual sweep of areas, eliminate dirt, dust and scrap. Make workplace shine. Identify necessary items and remove unnecessary ones, use time management. Self-Discipline Standardize Make 5S strong in habit. Make problems appear and solve them. Work to standards, maintain standards, wear safety equipment.

18. Exercise objective: : To identify elements of 5S in your workplace. Write an example for each of the 5S’s below: Sort____________________ Straighten____________________ Shine____________________ Standardize____________________ Self-Discipline____________________ Exercise

19. At this point, you should be able to: Identify and describe the 7 Elements of Waste Describe 5S Provide examples of how Lean Principles can affect your area Summary

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