elimination of 7 types of waste (muda)

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Elimination of Waste Introduction

Thinking win, Win, WIN

Elimination of WasteElimination of 7 Types of WasteMarek Piatkowski – January 2017


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Introduction - Marek Piatkowski Professional Background

Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994

TPS/Lean Transformation Consulting - since 1994 Professional Affiliations

TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME

Lean Manufacturing Solutions - Toronto, Canada

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What is Work and what is NOT Work?

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Types of Work

Meaningful Work - work that adds value to a product or advances a product Value Added Work - operations which increase a value of a product

from the Customer’s point of view Non-Value Added Work – Incidental Work. Work that does not have any

particular value, but it has a cost. The higher the value-added operation in your completed work, the

higher the level of production efficiency will be. When walking and looking at different operations you will find that

the actual “work” which adds value to the material is surprisingly small, while waste or an activity which doesn’t increase value of a product is remarkably large.

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Value-added (VA) operations are those activities, which advance a product or increase the value of the product from the Customer’s point of view

This includes processing operations such as changing the shape of product, changing its quality or assembling different components into a large part. Assembling parts, cutting, stamping, soldering, forging raw materials, tempering gears, painting bodies are examples of real work or value-added operations

When walking and looking at different operations you will find that the actual “work” which adds value to the material is surprisingly small, while waste or an activity which doesn’t increase value of a product is remarkably large.

Value Added Work

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Non-Value Added Work (NVA) – Sometimes called Essential or Incidental Work.

This work that does not have any particular value, value, but must be done to complete the job. And this work has a cost.

For example, Non-Value added work includes leaving the workplace to get parts or tools (walking time), applying labels, packing product, entering information into data base, testing, filing, unpacking product or picking up parts from a bin

If we carefully analyze each work process, the equipment and materials being used, we soon can identify waste and find ways to eliminate it.

Non-Value Added Work

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WASTE(Muda)

Waste (Muda) - is NOT work. Waste are activities, motions, behaviors or actions that are not part of the actual work (non essential activities).

Waste refers to such things as: waiting, repairing, sorting, inspecting, verifying, checking, counting and rearranging materials unnecessarily, or handling parts that are not needed right away

Two major contributors to Waste: Unevenness - fluctuating schedules, planning and production

quantities Overload - machine or employee pushed beyond natural limits

of their capacity

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Taiichi Ohno was a Japanese industrial engineer who became a Toyota Executive. Taiichi Ohno is considered to be the father of the

Toyota Production System.

Toyota’s ChairmanFujio Cho

“Waste is anything other than the minimum amount of equipment, materials, parts and

working time which is absolutely essential to add values to the product or service”

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Types of Work and Activities / Motions

Value Added Work- welding bracket- cooking- assembling cover- painting frame …

Non-Value Added Work- loading parts- walking- exchanging tools- applying labels, packaging

Waste- inspecting- rearranging parts- repairing- waiting …

Waste - Muda

Value Added Work

Motion

Non-Value Added Work

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Seven Types of Waste

Unnecessary Transportation

Unnecessary Motion Unnecessary Inventory

Unnecessary Processing

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1. Waste of Overproduction Overproduction occurs when we produce too much or too early. By overproducing we create unnecessary inventories, which

require unplanned storage space and additional material movement.

This also often results in producing an obsolete product, a product that must be sold below its cost or it must be scrapped

Overproduction causes unplanned use of material, manpower and machinery which should have been allocated to produce other type of final product.

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1. Waste of Overproduction Producing too much or too soon

Processing a larger amount than is necessary (producing more parts than required) Producing goods at a rate faster than they are needed (producing parts earlier than

required - right part but wrong time) Both forms of waste are undesirable, however, particular attention must be paid

to the latter since parts should not be produced earlier than necessary. One of the basic production principle of Lean is to produce to customer demand,

that is producing only what is necessary, when it is needed, and in just the amount needed.

Waste of Overproduction occurs when an operator uses a machine or a process simply because it is big, expensive, and capable of making lots of parts.

Ignoring the required production volume and producing too much is waste. Keep this in mind - producing things that do not sell or that we do not need is waste.

Overproduction creates more work and expenses which are unnecessary: when stocks of finished parts pile up, extra pallets, trays and containers are required to contain them.

Furthermore, extra expenses grow out of transport between processes and between the production lines and warehouse

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1. What is Overproduction? The production of goods in excess of absolute consumer

requirements Manufacturing too much or too early or “just in case” Producing more than needed, producing faster than neededCharacteristics:

Inventory Stockpiles Unbalanced Material Flow Extra Part Storage racks Extra Manpower Complex Inventory Management

Causes: Just in case reward system Lack of communication Automation in the wrong places Low uptimes

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1. Waste of Overproduction – Observations and Questions

Are we producing the right things? Are we producing them Just-in-Time or too soon? How does daily demand compare to daily output? What are the dates on the material - how long does it sit in each

location? How does each process or each station know what to process and

how much? Is there space for material even though there may not be extra

material in the location? How do the operators know if they are on schedule or not? Is there an hourly production board? Is the equipment running at the stated optimal cycle time – Takt

Time? Does anyone know what the correct cycle time is?

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2. Waste of Unnecessary Transportation

The waste of transportation refers to any additional movement of product, beyond the necessary minimum.

It includes temporary unloading and reloading, load transfers, removal of quantities that are too small, non-direct routing and costs of expediting.

Transportation that does not add any value to the product from the Customer point of view.

Extra costs of unnecessary transportation or storage equipment, maintenance of that equipment and the unnecessary labor add up to the final costs of a manufacturing product.

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2. Waste of Unnecessary Transportation The waste of unnecessary transportation refers to waste

encountered by unnecessary movement of parts and information. Material movement is an important element in any operation,

because it involves not just delivery of parts and material, but also the supply of information. Material and information should be moved only to the extent required to meet “Just-In-Time” operation. Any transportation that is not required for JIT operation is a form of waste.

Transportation is not something that directly contributes any added value to the products; however it is a necessary part of the operation. Both the transport of parts and information are important and they cannot be avoided. However, they must be minimized.

Waste of unnecessary transportation is also a movement of material that does not support single piece flow. For this reason, it is vital to avoid movement of material unless it is supplying items when they are needed, where they are needed and in the quantity they are needed - Just-In-Time.

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2. What is Unnecessary Transportation?

Characteristics: Extra carts, fork lifts, dollies Multiple Storage Locations Extra Material Racks Complex Inventory Management Extra Facility Space Incorrect Inventory Counts Damaged Material

Causes: Large Lot Processing Unleveled Schedules Lack of 5 S’s Lack of Visual Controls Improper Facility Layout Large Buffers and In Process Kanbans

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2. Waste of Unnecessary Transportation – Observations and Questions

Does material flow smoothly from one end of the factory to the other? How is material handling performed, are there dedicated routes with

dedicated material handling people? Are there partial boxes and pallets returned back to the warehouse? How heavy is the material being moved, can the movement be done

with a less expensive (lower capacity) lifts or material handling device? How do material people know when to pick up and deliver, how do they

stay on schedule? How do material handling people know where to store material and how

much? How much time do material handlers spend removing packaging (e.g.

boxes, tape) Are there a lot of marks on the walls from carts, is there any evidence of

damage to walls from material handling equipment? Any evidence of damage to the material handling equipment?

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3. Waste of Unnecessary Inventory Inventories are measured in terms of time - from the moment the

material is received to the moment that it is shipped out as a product.

Manufacturing costs begin to accumulate whenever parts in process stop and wait at different stages of manufacturing.

Any kind of inventory results in waste, whether that includes raw materials, components, sub-assemblies, work-in-process inventory, packaging materials or information data.

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3. Waste of Unnecessary Inventory The waste of unnecessary inventory refers to holding excessive

stock. The result of holding a greater amount of finished goods or work-

in-process inventory than necessary between processes, or from purchasing an excessive quantity of materials is waste.

When there is an excess of parts between work processes, or too many parts are delivered by outside suppliers, the situation is called waste of inventory.

Inventory is often a security measure taken in case an emergency situation arises. At the same time, however, inventory increases waste.

The greater the inventory, the greater the waste will be. It tends to hide the real causes behind the emergency or breakdown.

Serious or chronic problems go unnoticed. As a result, real causes are overlooked; improvements are not made and the recurrence of problems will not be prevented.

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3. What is Unnecessary Inventory?Waste that consists of excess inventory over and above that which is

necessary. It increases costs and lead times Reduces quality and flexibility

Characteristics: Extra Space on Receiving Docks Material Between Processes Stagnated Material Flow LIFO instead of FIFO Extensive Rework When Problems Surface Long Lead Time for Engineering Changes

Causes: Incapable Processes Uncontrolled Bottleneck Processes Incapable Suppliers Long Change Over Times

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3. Waste of Unnecessary Inventory – Observations and Questions

What size batches are supplies brought in, how many days/weeks/months of inventory is this?

Is there any evidence of obsolete materials, where are they stored?

How much equipment and space is dedicated to material handling and storage?

Do the material requisitions match up with the amount of material really on hand?

Is there a lot of “hidden” material in the form of unorganized storage, is the material stacked higher than eye levels?

What is the date on the material is it more than a couple of days old, when will it be used?

What is the waste associated with extra inventory in terms of space, equipment, manpower, safety, computer equipment, energy, and obsolescence?

How often is material replenished at the process?

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4. Waste of Waiting At any time when a machine is idle (when it is needed) or an

operation is not producing, we experience a waste of valuable production time.

Delays caused by excessive start-up time, long on-line set-up times, breakdowns, unplanned repairs and maintenance.

Waiting for a delivery of a missing part or a component, collecting tools, collecting materials, waiting for an operation to finish before proceeding to the next step.

Waiting for information or instructions, reading and trying to understand instructions, searching for lost or miss-placed items.

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4. Waste of Waiting Waiting is a form of waste. This type of waste is being “idle”

between operations An example of this waste is when an operator has to wait for a

machine to complete its automatic stage of a process. Waste of waiting can appear often on a multi-process line that is not as efficiently organized as it could be.

Another example of waste of waiting could be in an assembly process. When the amount of work is small, if one cycle of the operation is completed and the main component for the next assembly cycle have not yet been delivered to the worksite, the operator ends up wasting time waiting for it.

Sometimes it might be an unavoidable period of unproductive waiting, but constant awareness of this waste can result in ideas to improve efficiency by changing the job sequence.

Another instance may be when an entire assembly area is halted while a Line Leader or material handler searches for needed materials, schedules or supplies.

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4. What is Unnecessary Waiting? Unnecessary waiting that results from customer orders, inventory,

or completed products waiting in queue for a process to begin. Operators waiting for work, materials, machine, instructions,

orders, etc …Characteristics:

Unbalanced Operations (Work) Unplanned Equipment Downtime

Causes due to: Inconsistent work methods Long machine change over time Low man/machine effectiveness

Results: Long lead times Wasted floor space Ineffective use of time Ineffective production planning

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4. Waste of Waiting – Observations and Questions Are the operators standing around and waiting for something? Why do operators have to “watch” or wait on equipment? Does the equipment stop automatically if abnormal conditions

occur? Are there signals if the equipment stops, who can hear or see

these signals How do operators know when they are supposed to be at their

workstation? How are the jobs organized, who sets them, how do operators

know what to do? Are there work instructions, how much variation in work pace is

there between operators? What happens during an breakdown, what happens to the

operator? What do operators do during changeover, are they active

participants?

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5. Waste of Unnecessary Processing When poor planning results in the purchase of equipment with

greater capacity than required Development of complicated processes and systems, additional

handling of data and information, delays caused by extensive levels of approval, lack of standards, ineffective training methods, reworking of presentation materials, generating conflicting directions, complicating issues rather than simplifying them all result in unnecessary processing

This type of waste occurs whenever manufacturing methods are poorly planned and implemented or when these methods and functions are poorly exercised

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5. Waste of Unnecessary Processing Waste of Unnecessary Processing is an activity that adds no

further customer value. Anything which does not contribute to advancing the process, or to the accuracy of the formed part, or exceeds specification, is a waste of processing.

This type of waste has no connection with advancing the line or improving the quality or the value of the product.

There are many instances of parts being processed excessively. For example, parts which only require rough surfaces (non critical surfaces not apparent to the customer) may be excessively finished, machining operations that cut threading holes deeper than required, or machining unnecessary features on a part.

Redundant inspection or checking may also be thought of as an example of waste in processing

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5. What is Unnecessary Processing? Effort Which Adds No Value To a Product or Service. Results from steps in production processes that do not contribute

value or create too much costCharacteristics:

Process Bottlenecks Lack of Clear Customer Specifications Endless Refinement Redundant Approvals Extra Copies/Excessive Information

Causes: Engineering Changes Without Processing Changes Decision Making at Inappropriate Levels Inefficient Policies and Procedures Lack of Customer Input Concerning Requirements

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5. Waste of Unnecessary Processing – Observations and Questions

Are there any manual processes that could be done by a machine, with reasonable cost?

Is there any duplicity of processes? Are all quality procedures and standards available and

understood? How much of the work being done is value added to the customer? Is there a suggestion system, is it in use, what happens to

suggestions? Is there any equipment designated for reworking? Is there any extra equipment around that is not in use, why is it

there-is it contingent? How much paperwork is being generated? Is there a good understanding of the cost of energy and programs

in place to reduce consumption?

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6. Correction - Waste of producing defects Producing defects increases an overall production costs and it is a

major contributor to all other types of waste. Producing defects is de-moralizing to the employees When you produce defects you not only waste materials and labor,

but you loose valuable production capacity and you cause unnecessary wear and tear of the equipment.

You generate additional costs of reworking, storing, processing and/or disposing of defective material.

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6. Waste of Correction If a defective item or defective workmanship is discovered, it is

necessary to correct the defect as soon as possible. Waste of correction arises from having to inspect, correct or repair

defects. All time, material, labor and energy involved in repairs is waste. All repairs raise costs.

If a defective item or defective workmanship is discovered, it is necessary to correct the root cause of the defect as soon as possible. Correcting or repairing a defect of the materials and parts adds unnecessary costs.

Even if a defective part can be repaired, its quality is often inevitably impaired. It can also lead to quality problems further down the line and cause additional waste of labor and energy which increases costs.

Consequently, attention should be given to avoiding the waste of repair

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6. What is Correction – Producing Defects These are products or services that do not conform to the

specification or Customer’s expectation, thus causing Customer dissatisfaction.

Research confirms that 20 to 30% of manufacturing company’s gross revenues are spent on correcting mistake. Defects cause rework, confusion and upset a synchronized set of processes.

Inspecting and quarantining defective parts takes time and costs money

Causes: Incorrect product design Machines operating out of specs Defective materials Poorly trained employees

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6. Waste of Correction – Observations and Questions

Is there a dedicated area for defects, how many are in this area? What happens to defects and rejected products? Are the defective products analyzed and root cause problem solving

performed? How do operators know when material is out of specification, what is the

reaction or countermeasure? What kind of inspection is done on the line? What type of inspection is done off line-how often? How complicated are the processes, is there any standard work? Are there any boundary samples or on-line inspection equipment Are there examples of bad parts with explanations of why they are bad?

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7. Waste of Unnecessary Motion Any motion or no motion (example: holding a part) of any human

movement that adds no value to the product is considered waste Poor plant or machinery layout contributes to the waste of motion.

Unnecessary walking, bending, reaching, switching between sides are results of a poor layout.

Waste of motion occurs on the production line when standard procedures are either not defined or not followed or not carried out efficiently.

It also occurs when the standard procedure itself is inefficient.

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7. Waste of Unnecessary Motion The waste of motion refers to actions of an operator or equipment

which do not add value during the work process. Any movement of people or equipment which does not contribute

added value to the products is considered to be waste of motion. An example of this waste is when the operator has to leave his

workplace and search for the tool or part to complete his job and finds them unavailable.

Waste of motion also occurs when processes or equipment are not laid out properly – operators are positioned too far from each other or from the machines. It becomes inconvenient and a lot of time and effort is wasted in walking.

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7. What is Unnecessary Motion?

Characteristics: Looking for Tools Excessive Reaching or Bending Material Too Far Apart (Walk Time) Equipment for Moving Parts Extra “Busy” Movements While Waiting

Causes: Equipment, Office & Plant Layout Lack of 5 S’s Lack of Visual Controls Inconsistent Work Methods (Standardized Work) Large Batch Sizes

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7. Waste of Unnecessary Motion – Observations and Questions

Is there a lot of movement that is not adding value to the product? Do people look busy, but are not adding value to the product? Are operators engaged in searching for tools, documents, or

materials? Are there a lot of unnecessary boxes and containers around the

work station causing operator for extra motion? Are tools at the point of use, or are they at one central location? Are specialized tools at the point of use? Are a lot of people engaged in walking around? Is there a lot of pick and place, are operators tied to one machine

because of this?

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Identification and Elimination of Waste Identification and elimination of waste is the central theme of a

lean manufacturing production system Lean manufacturing is a dynamic and constantly improving

process dependent upon understanding and involvement by all employees

Successful implementation requires that all employees must be trained to identify and eliminate waste from their work

Waste exists in all work and at all levels in the organization

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Overproduction is the Worst

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Overproduction / Overdeliveriesincreases Inventory - Inventory hides Waste

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What creates Waste?

Poor Layout (distance/reaching)

Long setups, changeovers Weak processes Equipment breakdowns Poor work methods Inadequate training Poor compliance Poor parts ordering system Defective material

Inconsistent measures Ineffective production planning,

scheduling Poor workplace organization Inconsistent supplier performance Lack of discipline No standards Poor container design And many, many more!

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Eliminating Waste Elimination of Waste is a way to effectively and efficiently increase

production without purchasing more equipment, increasing the work force, working harder, or working longer, etc

Lean Transformation does this by identifying Waste (Muda) in work and then taking steps to eliminate it.

Lean Transformation is based on an assumption that operating efficiency and cost improvements can be achieved by working efficiently at a reasonable pace, without increasing the number of workers or machines, and without increasing the working time.

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Current Status VA NVA

TraditionalCostReduction

VA NVA

LeanFocus VA NVA

Traditional Approach to Improvement

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Eliminating Causes of Waste Waste refers to various phenomena in the operations process

responsible for raising costs without adding value. Elimination of Waste

First step towards efficiency improvement Difficult to recognize waste Need to make waste obvious to everyone Waste must appear distinctly and clearly Must re-examine the way we think about waste

Understanding the causes of waste and eliminating them from the work sites is important to the production system. There are two other contributors to waste:

Unevenness Overburden

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3 Ms areas – Muda, Mura, Muri

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Unevenness Unevenness refers to the phenomena of process fluctuations that

result when production schedules or deliveries are not constant or reliable.

The greater the unevenness the more waste there is Typically what happens is that out of our fear of shutting down the

customer we keep enough parts, material, and people around to always be prepared for the maximum demand that can be placed upon us.

Unevenness can be observed, not only in the overall production volume, but also at the worksite in the amount of work done by the worker, the flow of parts in and out and the use of machines and equipment.

When the amount of work performed by each operator is different or uneven it is difficult to truly grasp where the waste, problems, or inefficiencies exist in a system.

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Overburden Overburden happens when equipment or a worker is pushed

beyond the natural limit of their capabilities. The capacities of either people or equipment can be

overburdened. Overburdening people results in safety and quality problems.

While overburdening equipment is a direct cause of breakdowns and defects. Continuous overburdening of people and machines will increase the costs instead of minimizing problems

Obviously people have their limits, and there are differences among them which must be considered in production. If the standards are set for the specs of a skilled and experienced operator, but the actual work is being done by someone who is not yet fully trained, the work will not be completed within the standard time; the new operator will likely fall behind

We must be on the lookout for opportunities to have people rotate more in areas with strenuous processes, or make difficult jobs easier through continuous improvement

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Awareness of Waste The intent of the Lean Transformation process is to raise

productivity and reduce costs by eliminating Waste and minimizing Non-Value Added Work.

Waste refers to various phenomena in the production process responsible for raising costs without adding value.

In fact, by definition almost anything that raises costs without adding value is defined as Waste.

Lean Transformation is based on an assumption that operating efficiency and cost improvements can be achieved by: Working efficiently at a reasonable pace without increasing the number of workers or machines and without increasing the working time

If we carefully analyze each work process, the equipment and materials being used, we soon can identify waste and find ways to eliminate it.

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Why do we need to eliminate Waste? To reduce Lead Time To reduce operating costs To improve business performance visibility To improve “speed time to market” To exceed Customer expectations

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Understanding Waste Waste cannot be ignored. If we are going to improve our

efficiency and lower the operating costs, we must look at the job cycle closely and look for ways to eliminate waste to increase our production efficiency.

Waste does affect people Causes physical fatigue Causes emotional fatigue Increases frustrations Increases stress Causes you to blame others Steals your time

Non Utilized People - Wasted People Potential We know what needs to be done. We tell the management, but they do not

listen to us. We have been through this sort of program before and nothing ever

changes… The biggest issue is making us see and believe that management is going

to make it happen. They do not speak to us, the new breed of managers do not

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Methods to increase productivity Purchase more Equipment

Increasing the amount of equipment is one method to increase productivity Increasing equipment means that it is necessary to find people to operate

it. Increasing equipment is by no means cost efficient. Working Longer

Working overtime, working weekends or holidays This method of increasing production may be effective if done infrequently

for relatively short periods of time It is a poor solution in the long run

Increase the number of employees It is without doubt a way to increase production It is not a good way of generating profit

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Changing the World. One Transformation at a timeThis presentation is an intellectual property of W3 Group Canada Inc.

No parts of this document can be copied or reproducedwithout written permission from:

Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631

Cell: 248-207-0416

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