Module 5 – Waste

1. LeanSigma® Facilitator Training Module 5 – Waste

2. Topics Page Lean Sigma Process . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Customer Perspective . . . . . . . . . . . . . . . . . . . . . . . . 4 Waste: Tim Wood . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3. Lean Sigma has six steps to optimize processes.

4. Value and waste are always viewed from the customer’s perspective. Anything that is not value-added or business non value-added is waste.

5. Waste comes in many different forms. “Tim Wood” is an acronym that helps us remember the most common forms. Excess Transportation Excess Inventory - materials and information Unnecessary Motion Waiting Over-producing Over-processing Defects and rework

6. Moving materials (Transportation) • Characteristic: • Poorly designed floor space • Lack of communication • Inconsistent schedules • Large batch sizes • Bottlenecks Example: • E-mailing files back and forth • Use of large carts to move work Definition:The movement of material or information from one function to the next that does not directly add value to the service

7. Waste of Excess Inventory: Material/Information • Characteristic: • Too many forms or paper • Too many copies • Extra space for storage Example: • Excess paper reports • Needless cc: on e-mail • Two forms used with the same information • Duplicate copies of the same file Definition:Any supply in excess of customer requirements necessary to produce services

8. When you remove the excess work-in- process, other wastes become visible. “Now You See It!”

9. Waste of Excess Motion • Characteristic: • Looking to find information, supplies, or equipment • Multiple work stations to perform one task • Too much search or walk time Example: • Pulling information from various sources to add into one • Walking back and forth to an inconveniently placed fax machine Definition:Any movement of people or equipment that does not add value to the service Indiana Jones Kick Boxer

10. Waste of Waiting • Characteristic: • Unbalanced workloads – some steps take much longer than others • Process flow stops due to unplanned interruptions • Queues or idle time • Capacity doesn’t match volume Example: • Queues • Idle Time Definition:Idle time that is produced when two processes are not synchronized Boarding a plane

11. Waste of Over-Producing • Characteristic: • Extra information, supplies, or equipment • Unbalanced workflow • Large batch sizes • You produce “just in case” you need it. Example: • Running analyses before they are needed • Preparing mortgage docs before they are needed • Preparing a special report just in case the client asks for it again. Definition:Producing more than needed or producing faster than needed I love Lucy

12. Waste of Over-Processing • Characteristic: • Bottlenecks • Lack of understanding customer needs • Endless refinement • Redundant approvals or checks Example: • Reports produced, but not used • Recording the same information on four different forms in a chart/system • Reworking a Powerpointdeck over and over because the end-user’s needs are unclear • Assigning work to an over-qualified resource Definition:Effort which adds no value to a product or service

13. Waste of Errors (Defects) and Rework • Characteristic: • Extra manpower required to rework, revalidate, repair • Missed deadlines • Poor customer relations • Reactive vs. proactive • Unpredictable process outcomes Example: • Encoding errors • Late deliveries • Rerunning jobs that fail Definition:Rework or repair a service to meet customer’s requirements Staple gun