add notes - lean and 7 wastes

7/30/2019 Add Notes - Lean and 7 Wastes

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Lean and 7 WastesIntroduction to Lean approach and waste reduction

ABB Basic Quality Tools Series

ABB Group 9AKK105151D0118

15 July 2010,, Slide 1


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Lean and 7 Wastes - Content

What is it for?

Speeding up the order-to-cash cycle

Eliminating and reducing the causes of waste. Mostly the waste of time.

Ensuring physical improvements are sustained.

A key part of changing mindsets

Where could I use it?

When focusing on quality, cost and delivery performance

When physically changing an area When looking for opportunities for improvement

As part of engaging with employees

How do I use it?

Focus first on what the customer values

Look for value adding, value enabling and waste steps in the process

Look for opportunities to eliminate waste and reduce value enabling steps in order to reduce thetime to deliver value to the customer

Risks and how to avoid them

Lose sight of what is value from the customer perspective

Example ABB Group 9AKK105151D0118



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Expected Benefits:

Focusing on time as a key resource (like costs and people) can give a new perspective on how our

business operates and could operate thinking in terms of total throughput time from the customer

placing an order to the customer receiving the order can help illuminate opportunities to improve the

quality of service to the customer and also make improvements to our quality and cost performance. 7 Wastes can be used on an individual basis to help improve personal time management

The focus on time and the break down of a process into value add, value enable and waste steps is a

key part of the Lean mindset and approach

Uses of this tool:

Lean as a principle focuses on time as the means to improve quality cost and delivery performance

Time is valuable and must be understood from the customer and the business perspective

We all have opportunities to make improvements to the way we work, this will free up our time to add

more value

We use 7 Wastes as a prompt to help identify waste which we may not realise is there or which we

accept and take for granted as part of the process

Lean and 7 Wastes - What is it for?




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Background:

Lean looks to remove waste and focuses on

waste in terms of time what is value add,

value enabling or waste?

The classic 7 wastes are:

Transportation

Inventory

Motion

Waiting

Over production

Over processing

Defects

Uses:

Helps to identify and then define the problem

Used when reviewing a process break the

process map down into what steps are value

adding, value enabling or waste

Can help identify key measures to be monitored

when making improvements

Useful in day to day activity can help with team

and personal time management of routine

activities such as meetings, use of IT...

There are many more wastes, such as:

Waste of untapped human potential

Waste of Inappropriate control systems

Waste of energy, water and carbon

Service and office wastes

Losing customers...

Lean and 7 Wastes - Where could I use it?

Value

AddedNon Value Added+

V% W%

100%

X ABB Group 9AKK105151D0118



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Lean and 7 Wastes - How do I use it?

Transportation

Procedure and Guidance Notes:

Motion

Waiting

Over production

Inventory

Over processing

Defects

Overproduction is considered the "mother of all wastes" since it can lead to increases in all the other forms of waste.

Production of items sooner or in greater quantities than required for

customer demand Often caused by poor planning or incorrect bottleneck assumptions

Overproduction discourages a smooth flow of

production and leads to excessive work inprocess inventory. This increases overall

delivery times and reduces ROCE.

Any raw material, Work in Process (WIP) or finished goods which arebeing stored i.e. no longer having value added to them

Caused by overproduction inventory builds up between processes

Adds cost, requires space, hides processdefects, can encourage damage. ReducesROCE.

Adds time & cost and can be a safety

issue.

Unnecessary worker movement within a Process

Caused by poor workplace layout, poor process planning, poor

housekeeping, no Standard Operating Procedures.

People or Parts that are waiting for a work cycle to be completed

Caused by unreliable Supply Chain, bottlenecks, down time

Creates excessive lead time, causesbottlenecks, causes additional time & cost.

Unnecessary movement of items between processes and inventory

Caused, by poor layout and / or process design and planning,

unstructured or not understood Value Stream, complex material flow...

Leads to increased time & cost to transport &

search, and increased Defects due to

accidents.

A defect is when the Customer believes they did not get what they

paid for. Can have many causes including process variation, customer

requirements not understood correctly, mistakes ...

Defects can lead to additional time and cost,

and more critically it can reduce customer

confidence.

Processing beyond the value required by the Customer

Caused by lack of customer focus, Always done it this wayattitude,

lack of understanding

Can result in scheduled work time being longer

than needed, Parkinsons Law in project task

execution, increases in time & cost.




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Lean and 7 Wastes - Risks and how to avoid them

Risks :

If time is not viewed as a resource it will not bemanaged and opportunities to reduce throughput

time, reduce costs and improve quality may be

missed.

If existing practices are not reviewed andchallenged in terms of 7 Wastes (or more) there

will be a continued acceptance that the process

works fine profits may be eroded and

customers may be lost if the current state is not

continually improved

Steps to avoid them :

Use lean tools and techniques (processmapping, VSM...) to make process steps visible.

Once this is done, then analyse the process to

establish what is value adding, value enabling

and waste. What is the customer prepared to

pay for?

Encourage everyone to look for wastes in theirown process and in-between processes in order

to find better ways of working.

Open discussion about other types of waste

how many can your team come up with?




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Lean and 7 Wastes - Example

What is the problem for the

customer time, cost,

quality?

1. Clarify the problem

4. Eliminate waste

Plan and execute actions to

eliminate the waste steps

Study the process

where the problem

occurs

2. Map the ProcessSteps

3. Analyse the process steps

Decide what is value

adding, value enabling and

waste in the process

5. Reduce Value Enabling

Once waste is eliminated,

look to reduce the value

enabling content where

possible

5. Formalise new process

Confirm new process,measure and monitor, and

create new process map,

SOPs etc



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