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The Concept of Waste ”Understanding & identifying waste is the

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1 The Concept of Waste ”Understanding & identifying waste is the
Time: 11:45 Preparation: There is a document titled “Waste In Manufacturing” in the handouts. This is a word-processed document that contains many speaker notes and background. We will refer to as we go along. The speaker should have read it beforehand and be familiar with the cases it refers to, and presents! This session is three minutes per slide - quite fast again. Introduction We have saved the exercises for after lunch, except 1 Think about your cell as we go - think does it have those wastes? Please refer also to the “Waste In Manufacturing” document in your files at the back of the handouts. This is a very important session, and that is why you have been given more detailed notes to support the session. The notes stand alone and can be read outside of the workshop. They are the basis of best practice! This session will aim to identify what is waste in manufacturing. The main aim is to get a wide group of people with a closer, or shared view of what is waste! If I asked you all to write down what is waste now, we will get many different answers. If we did the same exercise at the end, I would want the answers to be more similar. After this, we will aim to understand how waste is caused, and how it can be eliminated. Finally, we will do some exercises to try and put some numbers on it, to see how much waste is there. Key point - this is a levelling session! If you find it easy, make sure that you are helping others around you! We will move faster as a group if you help us with this. Waste and the elimination of waste are at the heart of Just In Time, World Class Manufacturing, Lean Production, Agile Manufacturing, and just about any other aspect of best practice manufacturing. FAQs Q: ”Understanding & identifying waste is the first step to reducing or eliminating waste” This is the bedrock of Best Practice Manufacturing

2 Two Elements to Every Job
Value Adding Valuable Effort Costs Time Costs Money Adds Value VALUABLE Non-Value Adding Valueless Obvious Effort Waste Costs Time Costs Money Adds No Value WASTE Where do we draw the line between waste and non waste. Most people will not argue over clear examples of obvious waste or valuable effort. The battleground is the middle bit! This is important because “valueless effort” is a huge element - so it matters which side of the line it falls. It is usually be biggest of any other the valuable effort, valueless effort, and obvious waste. Valueless effort is usually driven by custom and practice - what we have always done! We need a definition of waste - will work towards one. You can make your own definition (so long as it is similar to mine, he, he). Where do we draw the line between Waste & Non-waste elements?

3 Rough Guide to Waste TOYOTA defines Waste as:
"anything other than the minimum amount of equipment, materials, parts, and working time absolutely essential to production." Toyota have a definition, but if best practice manufacturing is about many people pulling together in continuous improvement, it may lead to a lack of agreement regarding the direction! Next is the rough guide to waste. As the name suggests, it may not be finished just yet, but we will do an exercise with it to see what we find. For example, mixing the cake changes things, but not finding or weighing the ingredients? The advantage of the rough guide is that it is at least clearer regarding the direction for a team! We are about to do an exercise, so let us do the exercise and see what it tells us! Please hold your comments until after the exercise. It is designed to smoke out some issues! FAQs Q: What about XYZ? That is not waste, is it!? A: Hang on for a moment. We will do the exercise, then discuss what it tells us. But for the moment, we need to do the exercise. And for this, we need to not discuss it too much beforehand. But we will discuss this point (and I’m sure others) afterwards! Difficult to get a team to agree what is absolutely essential! The Rough Guide to Waste is: “Only an activity that physically changes the shape or character of a product or assembly can add value” Therefore: Any activity that does not change the product or assembly is waste This is a more objective judgement

4 Waste or Non-Waste ? Once people have completed the exercise . . Look at a few in detail! Guidelines are to ask people to raise their hand clearly in the air if they think the activity is not waste - but is valuable - when you have counted to three! Will count to three. Tell people to raise their hand on three (if they think the activity is valuable), not have a good look around then decide! Call out “machining - if it is not waste raise your hand on three. One . . Two . . Three” Repeat for plating, heat treating, transferring/moving, assembly, counting! Do not discuss - this will come in a moment - just want to see what the group thinks! Heat treat, machining, assembly and plating are often valuable. There are examples in the notes where they are not. Supplement these with others - or ask others if they are aware of others. So you still may be able to eliminate it Transferring/Moving and counting are waste - find ways to eliminate. (eg ways to count 12 eggs quickly). FAQs Q: so something is (or is not) waste? A: The definition is not complete! It gives some guidance, but is not always clear! Let us draw some conclusions from the exercise! All these activities require effort, cost time, cost money but not all add value. Which ones are waste?

5 Definition of Waste - Conclusions
Effort frequently does not result in changing the shape or character of a product or assembly eg. moving, counting, expediting, setups, inspecting, etc Changing shape or character of a product or assembly does not necessarily add value eg. machining, plating, assembly, painting, heat treating, etc The more waste you can see, the more you can eliminate If you accept activities as waste, you may devise methods to eliminate them. YOU choose whether to tolerate the waste! Effort does not change the shape or character - obvious - running around the houses to get the job done Changing the product does not add value - it all depends on how the customer views things! What is valuable - what is not! The more you can see! Custom and practice is the biggest blindfold that stops us seeing the wood for the trees. Custom and practice stop us questioning whether activities are necessary or simply, “the way we have always done it”! If you cannot see waste, you will not start thinking of a way to eliminate it! If you see it as waste, you may be able to think of something. But do not say it is not waste because I cannot think of a way to get rid of it! Perhaps others could (if you asked them), but do not make it difficult for others to think of ideas by stopping them before they get started! We can view the elimination of waste as a race - us versus our competitors. If they think of ideas to get rid of waste first, we are in trouble. We are in big trouble if they keep on doing it again and again! It is up to us to see how much waste there is! FAQs Q:

6 Definition of What Is Not Waste
Every activity should be considered as waste, unless it: Meets an explicit customer requirement Cannot be shown to be performed more economically We prefer to turn the argument around. Assume everything is waste, and then define what is not waste. In some ways this is easier! Explicit Customer Requirement Explicit vs implicit - most requirements are implicit - think something, always done it a certain way, no-one has complained when But is that actually what they want? Show me on paper! “Customer” can be wider - such as a regulatory body or health and safety - but again, show me the standard . . Requirement - is it genuine, or just a wishlist - does someone in a chain of Chinese Whispers think it is important, but not necessarily the customer. Does the customer actually know enough about the product to say what they need (or are they being cautious to withhold their uncertainty in a commercial negotiation)? Have we given them enough information to make an informed decision of their requirement? There are many examples of change where custom and practice said that something was needed, and later turned out to be unnecessary. Think of no-thrills airlines, etc! If customers are able to pay for things, they are usually happy to. If this changes however, it can change very quickly! Cannot be shown to be performed more economically In some ways, a slightly more unclear requirement - subject to some argument. Let practical constraints guide this. For example, you have not always got £10 million to invest! Best practice manufacturing requires many different people to be involved in making improvements. So you will need to take others with you (team-based working) - so consensus is important! This definition being objective is important with this! FAQs Q: What about administrative activities? Paperwork? A: It depends on the customer requirement. In aerospace and some other industries, full traceability information is required for some materials. Transactions to capture and maintain such information could be seen as adding value in this situation, whereas they may be waste in others! Passing information to a supplier may be adding value - passing it a fourth time and phoning to chase a late delivery sounds more like waste! Usually in a company there is so much waste that there is no need to get lost in the fine debate of exactly where the line is drawn. Usually there is so much that is clearly waste, that the firm can get on with that. Close calls may clarify themselves later on! Get on and eliminate waste - not contemplating the inside of a ping pong ball! If the activity does not meet a known customer requirement or could be performed more economically, why continue in the same manner? This is objective, accurate and challenging - giving a strong basis for agreement

7 Types of Waste Motion Transportation Waiting Time The Overproduction
Inventory Processing Time Defects The Seven Wastes Do not spend too much time arguing whether x or y type of waste! Waste is waste. Look at the different wastes for two reasons you will see more waste some wastes have predictable causes identify the waste - gives an idea of what is causing the waste! The seven wastes come from the Toyota Production System The others are simply common sense additions. Sometimes they can be very significant. For example, a food company saved £68k in one year! Other classifications exist. 10, 12, 13, 15, 21. The seven have stood the test of time! We will go through them in groups. FAQs Q: Energy Untapped human resources By-products Other Common Wastes

8 Motion & Transport "MOVE does not equal WORK”
Examples and causes include: Rearranging temporary storage areas Moving and searching for anything (tools, material etc.) Functional organisation (similar processes all in one area) Engineering all parts onto one "supermachine” - Project “Heathrow” Counting parts Double handling: into stores, from stores large containers to small containers (& back) Bending down to pick up parts Motion and transport are some of the more obvious forms of waste! A distinction for you (if you would like one): Motion - something that people do Transport - something that happens to materials Other comments: functional organisation. For example, putting welding on outside walls to facilitate extraction means that the parts may then have to travel distances and into other areas of responsibility for other operations. Project “Heathrow” is like building one great big resource in the midde of your factory that causes huge amounts of disruption and queuing for everything around it. Everything has to move to it and away from it! We laugh at the planners who create this mess - then go and do it ourselves! Bending down to pick up parts. The biggest shelf in most factories is the floor. It simply shows a lack of attention to detail in many situations. Do not confuse motion with progress or you’ll become a busy fool - the best advice from the CBI! Here is a game for you! The Gangway Game! Take a photo (real or in your mind’s eye) and everyone in the gangway is wasting - by definition - who ever worked in a gangway!? Here is another one. How far do things travel. Pace out the routing for a part. I can be amazing. My favourite is one part on the wing of a Boeing 747 that requires an operation that is illegal in the US. It is shipped on a plane to Europe - one operation is done - and it is flown back to Seattle!! FAQs Q: What if you need to move? A: In many situations you cannot eliminate movement, but we should always aim to minimise it! For example, pace out the distance travelled and make it less! This applies to how far a part travels, how many steps a setter needs to setup a machine, an inspector to validate paperwork, etc! “Don't confuse motion with progress or you'll become a busy fool” John Wolfson

9 Motion & Transport Motion and Transport give:
Opportunity for damage in handling and movement Poor space utilisation poor layout with large distances between stages large proportion of floorspace used for gangways and storage areas Low productivity giving high labour cost Large batches waiting for transport large inventories, long leadtimes, poor responsiveness What do we get for our money? Let us look. Many of these wastes are related to other forms of waste that we will cover shortly. For example, large batches are heavy and may need forklifts, which may need access, and may result in machines being placed some distance apart. Wide gangways may be needed. Because machines are so far apart, we do not want to move in small quantities, so we batch up, which become heavy. We have a chicken and an egg! Another game! The “Isn’t There Lots Of Space - Let’s Have A Dance Game”: Get a factory layout, look at it and see what adds value and colour it a different colour. It is not unusual to find a tiny percentage of all floorspace dedicated to adding value. What does the rest do? Improving this can be very quick, as it is often little things that can make a difference. All of this increases the cost of the operation, but does not provide any service to a customer! FAQs Q: High cost and low service levels

10 Waiting Time, Overproduction & Inventory
Three causes of Waiting Time Waiting time can be viewed from the point of view of material, machines, or (the politically incorrect) men No Material: you may be the victim of your own success - a good run in an FMCG plant can strip all the material out of the supply chain or scrap the materials off (perhaps at an earlier stage), or give a poor schedule to the earlier processes, or have a poor supplier (or encourage them to do the wrong thing, such as just machine efficiency). Why did we have a poor schedule? Did we feed the correct information back into the production planning and control system, or were we too busy, or did we not know how to do it? No Machine: Broken down, or doing setups, so not available Dedicated to large batches of other products, so not available until a long way out Other little items missing that stop the sho (The “Hunt The Allen Key” Game) No Man: People may be available, but with the incorrect skills. We are rarely short of people (as waiting time by definition usually stops some people from working), but we are frequently short of people with the right skills Watching machines = very good at crosswords! Time on their hands It can be good to get a skills matrix in place to see where people are and are not skilled and to what level FAQs Q: No Material scrap breakdown poor schedule poor supplier No Machine breakdown setups large batch no tool, jig, fixture,gauge No Man skill shortage absenteeism watching another machine

11 Waiting Time, Overproduction & Inventory
Two causes of Overproduction Overproduction is often seen as the least of all wastes. This is entirely wrong as it hides many other types of waste. As was said earlier - many areas of waste are tied in together, and this is a good demonstration of this. Why is too much made: Long setups EOQ/EBQ (economic batch or order quantity) where we will make a batch to make up for a long setup The process design eg. It needs 100 on the sheet at CNC punch or the oven takes 50! Purchasing minimum order quantities Why is work done early: Tight on capacity so get ahead (20 mins value adding with 1 week subcon with 10 mins value adding) We pay a set amount for using a process (eg an oven) so we fill it to get the lowest price for the operation (and spend pounds to save pennies) Perhaps the worst aspect of overproduction is this: Most factories have a limited amount of resources, but have to produce a range of different parts If you allocate too much of the limited resources to some parts, that will probably leave too little left for the other parts to be made! That sounds like a shortage being made! Factories do not want overproduction - they want to avoid shortages!!! Do not abuse limited resources so that we make shortages! Overproduction is the other end of the same stick called shortages! This is the worst of all wastes - this will be explained in a couple of slides time! FAQs Q: Why is this the worst type of waste? A: This will be explained in two slides time! Bear with us! Too Much more than is needed long setups EOQ design of process Too Early earlier than is needed lack of machine capacity subcon operations long in-process delays and leadtimes The least of all the wastes? No! The worst of all as it helps hide other forms of waste

12 Waiting Time, Overproduction & Inventory
Four causes of Inventory Go walk around a shopfloor and find a pile of inventory. It may be there for a number of reasons. Unbalanced material flow: For example, injection moulding makes 6 months demand of a part in 1 day! Levelled quantities = batch size at components of 200, batch size at assembly of 5. Cushion Storage: Breakdowns = suggest a need to cushion the other processes with a big pile of inventory Rejects and poor suppliers - cannot be certain of when or how much will be received, so add a buffer Safety Storage: The same rational as cushion storage, but cushion storage is justified statistically - safety storage is there for emotional comfort! Just to tbe sure, to be sure! Lot Delays: 10 second Value Adding, pallet of 1000, move, pallet A long time for very little value adding. This gives a tremendous amount of inventory! Why can we not simply get rid of the cause of the large batch sizes - setup reduction, etc FAQs Q: Unbalanced Material Flow synchronisation between stages level quantities in and Cushion Storage breakdowns rejects poor suppliers or buying Safety Storage increase feeling of security Lot Delays transfer batches greater than one

13 Reducing Waiting Time, Overproduction & Inventory
Level of Inventory Are these (waiting time, over production and inventory) saving you (protecting you) from the “problems” or stopping you deal with them by hiding the symptoms? Question: Who has seen this analogy before? Explain to those who have not. The company is the ship. The problems within the company are the rocks. Ship does not like rocks = company does not like problems! Therefore have water to stop hitting rocks = hold inventory to work around the problems! Beware - you do not have to face the problems - so you may not solve or eliminate the problems Excellent companies will have very high stockturns. Stockturns can be calculated in several different ways, such as the cost of the materials sold each year divided by the cost of the materials held at a point in time (eg £12m sales and £500k materials gives a stockturn of 24). If two companies making the same products in the same town for the same customers . . . One has a stockturn of 4 (once every 3 months) One has a stockturn of 52 (once a week) Question: Who has solved the most problems, taken out the most rocks, works most smoothly! There are two approaches to changing this: Solve the problems and then take the inventory out (Calm and sedate - safe and slow) Take the inventory out, then solve the problems that emerge (gung-ho!) They each have their advantages. Usually take a path between them. A little bit of each! FAQs Q: What is World Class/Best practice? A: It depends on the industry. Sandwich making = Engineering perhaps Nuclear submarine building = 0.5. Long Set-ups Skills Shortage Rejects Breakdowns Machine Capacity Transport Delays Supplier Deliveries Scheduling Overproduction and Inventory hide causes of Waste (otherwise, why would we hold them?)

14 Reducing Waiting Time, Overproduction & Inventory
The preferred answer is to act in two ways Solve problems so we can reduce inventory. If you do only this, the problem often returns reduce inventory - to prevent the problem from being able to return. Example. Take setup from 2 hours to 30 mins. If you do not reduce batch sizes so that four times as many setups are required, the setup might return to 2 hours. Question for attendees: Why might the setup return to two hours? Answer: Because it can! People will not rush to do something in 30 minutes if they know that they can take two hours to do it! Once we have reduced one problem, and taken out some inventory, we need to reduce the next problem and remove some more inventory, and on, and on! FAQs Q: Level of Inventory Skills Shortage Long Set-ups Rejects Breakdowns Machine Capacity Transport Delays Supplier Deliveries Scheduling Solve problems to reduce the level of inventory in the manufacturing system and reduce the level of inventory in the system to prevent problems returning!

15 Waiting Time, Overproduction & Inventory
Waiting Time, Overproduction and Inventory give: Lots of parts not wanted, but available Lots of parts wanted, but not available Poor man, machine and material “utilisation” Large inventories, long lead-times, poor responsiveness Difficult to identify sources of quality problems Poor layout, lots of motion and transport Material handling, indirect, overheads, systems The first two points is the classic overproduction/shortage issue. We have bits - just the wrong ones! Shortages issue, if you add more inventory it actually gets worse The reverse side of overproduction is If you have limited resources (which most cells have) . . . And you overproduce some items . . . You must underproduce other items . . . Sounds like a shortage! It is not overproduction we want - because this means shortages - it is balance production! Your utilisation of men, machines and materials - however you measure it - must be poor, because we have consumed all the resources available and have not made all the different parts that we need! Do not tell me your utilisation is good! The others again, all add cost to the business, but do not increase the service to a customer! And again, tie into the other types of waste! Waste breeds waste, so we can end up with tremendous levels of waste very quickly! FAQs Q: High cost & Low service levels

16 Processing Time Examples & potential causes include:
Low operation rates due to tool, jig, or machine condition / spec Non-standardised elements of work, insufficient process monitoring, or lack of operator skill / knowledge Roughing cuts due to oversized material Deburring due to poor tool maintenance or product design additional operations due to product design or production engineering Stopping machine to clear minor stoppage The waste of processing time is usually quite well understood and looked at closely in most cases. Question for attendees: Why is this waste looked at so closely? Answer: You can measure it. The accountants are very interested in it to work out the product costing, etc! Therefore, it is very closely scrutinised. Other parts of waste cannot always be so closely measured in financial terms (although some can - such as inventory levels). Question: Are there other examples in your cell? Usually, it is the idea of custom and practice that again hide some of this. For example, how long does a setup take - it depends - it depends on what? FAQs Q:

17 Processing Time Waste of Processing Time gives:
Lower direct labour productivity Higher labour cost Higher machine cost Higher product cost Reduced capacity Wasted business opportunity - “the glass ceiling” effect Lower return on capital employed Lower direct labour productivity: (these points are usually more straightforward) Custom and practice dictate what is seen as capacity Reduced capacity: These points are often less straightforward and sometimes not understood we can easily place a glass ceiling above ourselves, where we feel we cannot do more than a fixed number of units per week or period! We then turn away orders above this, perhaps by quoting a very long delivery leadtime! What could you do if you could raise capacity by 30%, as with an ice cream manufacturer? FAQs Q: High cost and low business performance

18 Defects Waste of Defects gives: High cost and low business performance
Low direct & indirect labour productivity Machine capacity wasted producing defects Ineffective material usage Inventory kept to decouple processes Equipment & space required to keep inventory Production control system made more complex Delivery reliability reduced An example to link these two slides is corrugators. Some people will these machines slower to prevent rejects. For example, corrugator machines almost always run at half speed to avoid defects (these machines cost £4 to £8 million apiece). Do you want to lose so much capacity from this expensive machine? Defects again require capacity to make, and rob us of the capacity to make good components. There is another way of looking at this on the next slide. FAQs Q: High cost and low business performance

19 Defects The Scrap iceberg The impact of defects is much greater than
Concession Defects usually cost much more than they appear on the surface. People often quote a scrap rate of perhaps 2-3%. However, what happens underneath the surface, that is perhaps slightly more difficult to measure? Rework loops. We need rework loops to put right the wrong parts. We need to put our best people into these as it is more difficult to put something right that has gone wrong than to make it right in the first place. So we lose our best people, who should be making good products right the first time. So we reduce our capacity. Longer leadtimes. Because of the uncertainty of whether we will scrap items, and the safety and cushion stocks that are held to keep people busy, the leadtimes we have to guote are longer than needed. Rescheduling. Despite the long time we have given ourselves to make the parts for the customer, we will have to reschedule work when items are scrapped. Delivery failures. And despite this, we will still fail to deliver sometimes - especially if we reject the item when it is nearly complete. Increased inventories. TO protect ourselves from this, we will probably increase our inventories. So in the end, we will end up with customer complaints! The cost of defects is much greater than the scrap rate in the operation. A rough rule of thumb is to multiply by ten (but this does not work well where you that a scrap rate greater than 10%! FAQs Q: rework loops customer complaints The impact of defects is much greater than the level of scrap (multiply by ten) longer leadtimes reduced capacity increased inventories (Harrison, 1992) rescheduling delivery failures

20 Other Common Wastes Other Common Wastes Energy Untapped Human
Time: 12:58 These other common wastes demonstrate how lax we can sometimes be at work, when compared to our home lives. Energy: this is very important in some industries, for example - power stations in Denmark are required to direct waste heat towards heating roads, public buildings, and market gardens. Aircraft hanger doors left open - why? Would you do it at home? Untapped Human Resources: This is important in all industries we have seen! Probably the largest waste of these other types of waste! People who could make great contributions that are simply not asked to contribute - but could slve many issues and problems! If only they were asked, or allowed to! These people often do amazing things outside of work hours - brilliant capabilities - but we do not let them use them at work! By-products: This can be important in some industries - especially where some material costs are excessive, or the costs of disposal. Increasingly, packaging is an example of this with pressures to recycle more and more It may not be very important to you, but sometimes the costs of this are surprisingly large (eg landfill, sewage or treatment, etc) This area is becoming increasingly sensitive, very quickly, with pieces of european legislation coming into force. Summary We have looked at what is waste, and at the different types of waste that can be found, along with what sometimes causes them. After lunch we will look at some examples of waste. After this, we will try and measure how much waste there is in manufacturing. We will find there is no such thing as one perfect measure. Some work well in particular situations - others work better in other situations. We will look at a number of measures to see what they together begin to tell us. Lunch At about go to lunch, allowing 30 minutes for lunch. Handout the name badges required! Announce a time for people to be back in the room (for example, 1:30). Plan to re-start the session within five minutes of this time. FAQs Q: Energy Light Heat Power Untapped Human Resources Engineering and commercial capabilities not directed to solve problems By-Products Scrap materials Recycling - oil, coolant, etc

21 Other Example Measures of Waste
Motion: Total number of footsteps required to complete a task Machine: Overall Equipment Effectiveness (OEE %) Transport: Total distance traveled during manufacture Waiting Time: Proportion of time spent machine minding Throughput Efficiency (b): Sum of processing time vs leadtime Materials: Weight of material in vs weight of materials out There are many other measures - and we should measure whatever makes sense! These are some quick suggestions for some of the seven wastes. Do not measure them all. Do not necessarily take any of these - maybe use your own. But these are clear and simple. Motion: Number of footsteps: it seems better, all other things being the same, to take fewer steps to achieve the same end result! If you can do a job with 100 paces, and you re-organise it to take 30, that seems to be better! For example, one of the Cranfield consultants reorganised their kitchen so they could make breakfast with 30 steps instead of Strange people! This is nothing to be proud of for people with social capability! Machine: Overall Equipment Effectiveness: Many people are familiar with this as a measure, looking at how much capacity is used. A more simple version of how many spindles out of the total are spinning at a point in time! Transport: Total distance travelled: Our favourite example is a piece of a missile that travelled further during manufacture than it ever did when fired! This just doesn’t sound right! Not world class! Waiting Time: Proportion of time spent machine minding: Or perhaps waiting for shortages? Throughput Efficiency (b): another way of calculating this. An easier way. Add up the processing time for a part as a proportion of the total leadtime. Materials: Weight of material in versus the weight of material out: Very important with some industries. Think of others. These are only easy examples. Favourite example is where parts of a missile would travel further during manufacture than they ever would when fired! That just seems wrong! Doesn’t seem very world class! Further comments are made in the word document. Think of other measures - these are only suggestions. FAQs Q:

22 95% Waste ? Western JIT Production Systems
ZIPS, CFM, MAN, KMM, etc 1973 Japanese JIT Production Systems Kawasaki Production System Canon Production System This is one way of answering the previous question. This shows that basically many different terms are all derived from the same parent - the Toyota Production System. There is JIT, World Class, Lean, Agile, etc! Do not get hung up on terms! This shows that Toyota were ten to one worse than Ford and the Americans at the end of WWII. Decades later, the boot was on the other foot, and Toyota were two to one better than the Americans - a TWENTY-FOLD improvement RELATIVE TO THE MOVING GOALPOSTS! These figures come from a huge survey of the world’s car making industries lasting five years. (Shown in the 1990 book “The Machine That Changed The World” by Daniel, Jones & Roos) Very unscientific, but: both Japan and US had same technologies (Japan did not have own machine tools at WWII) war is a great leveller or the work ethic! Product designs moved on in the time as well - comparing at the same times Improvement was so strong they caused the rest of the industrialised world to sit up and take notice! Taiichi Ohno of Toyota would say that this is due to waste elimination. A modern example comes from a clutch company: “the same clutch is supplied to a US-owned and a Japan-owned car plant in the UK. For a similar production volume, the US plant requires four people to fix the clutch to the engine - the Japan plant requires 1!” There is 75% waste before you start! Go for a walkabout and try to “Spot Someone Working”. It is a very serious issue! 1 Japanese = 2 Americans 20-fold improvement 1962 1950 Just In Time Ohno Production System Toyota Production System 1986 WCM World Class Manufacturing Lean 1 American = 10 Japanese Caused by Waste 1990 Lean Production Agile 1992 Agile Manufacturing

23 Conclusions Waste is everywhere in manufacturing
The elimination of waste is a massive opportunity Best Practice Manufacturing reduces waste using a diverse range of practical techniques Time: 14:38 In this session we have: tried to define what is (and what is not) waste identified different types of waste - and what causes waste gone through a number of exercises to try and estimate how much waste there is in manufacturing. This should have shown there are large amounts of waste in manufacturing! But these are general exercises. It is important that you carry them out in your cell! At the end of the day, it is up to you. You see as much waste as you want to see. One case was the following: Lucas CAV of Gillingham in the early ninties though it was about 12% less efficient than Bosch - its main competitor. They thought they could close this gap with some minor changes, tools, designs, etc. It found out that Nippon Densa of Japan were six times more productive than Lucas. You cannot change that gap with “do what we do but better” This was stop thinking like that and think radical! When you see this in a case near to you, you will think something closer to a 95% opportunity exists . . But we hope you see the potential before someone forces it on you. Someone called a competitor! Perhaps! But, at the end of the day, it is up to you. You see as much waste as you want to see. That is a threat, by the way! The next person telling you may be able to make you pay more dearly! Time: 14:45 - Coffee FAQs Q:


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