1. Lean Thinking Workshop:
Zulfa Management Consulting
To get closer …
@zulfateam
@zulfateam
Lean Thinking Workshop:
Lean Definition
What is Value?
The 8 Types of Waste
Hussain Yasin Al-Ahmed
Management Consultant
@hyahmed
@hussain_alahmed

2. Lean is NOT ...
Clearing confusions
It is not a magic wand or silver bullet to fix everything
It is not a diet program
It is not a system to reduce headcount
It is not rocket science.
It is simple
It is not only for factories.
It works everywhere
It is not a solution to personnel or performance issues 2

3. 無駄 Muda What is Lean? Lean is simply is:
Basic definitions
Lean is simply is:
“ A systematic approach to continuously eliminate waste within a process ”
It may be referred to as:
Continuous Improvement
Kaizen
Operational Excellence
無駄 Muda 3

4. What is Lean Just In Time JIT Produce - only what the customer wants,
The Five Principles
Identify Value as Percieved by Cusotmers
Map the Value Stream
Esatblish Customer Pull
System
Create Flow By Eleminating Waste
Seek Perfection Through Kaizen
Produce - only what the customer wants,
- only in the quantities they want,
- only when they want it,
- only by doing the tasks that add value.
Just In Time
JIT

5. History of Lean
Over 60 Years of Continuous Improvement
1903
Henry Ford
manufactured the first commercial fuel engine car
Model A
1908
Ford established its first assembly line
Model T
1911
Frederick Taylor
developed scientific management principles
1913
Ford built the first moving assembly line
Toyota was founded by Kiichiro Toyoda and his son
1933
1970
Taiichi Ohno
finished buidling the Toyota Production System (TPS) after WWII
1950
Edward Deming made the PDCA improvement cycle popular
1939 to 1945
World War II
1946
Toyota suffered from post war depression and the great strike
Motorola initiated Six Sigma Quality
1980
1990
Jack Welch
created Six Sigma and the Center of Exellence at GE
1984
The rise of
Total Quality Management (TQM) Theroy
2000
Continouos Improvement, LSS and Operational Excellence Strategies are adopted by many organizations in different fields 5

6. Formula 1 Pit-Stop Evolution
Movie Time
Formula 1 Pit-Stop Evolution

7. Process Waste Lean Thinking Workshop
What is value-added and what’s not ...
Lean Thinking Workshop 7

8. 80% Why Focus on Process? Inputs Outputs Process 8 Products Services
Why not something else?
80%
Process
Inputs
Outputs
Products
Services
Material
Information
Customers
Material
Information
Customers
Resources (people, facilities, equipment)
Steps and decisions 8

9. Non-Value Added (NVA) Step
Process Waste
Is the step value added?
Value-Added (VA) Step
Lead time = 7 Hours
Before
Non-Value Added (NVA) Step
(Waste)
After
Lead Time = 3 Hours 9

10. Value Added vs Waste 1 2 3 30% 10% 60% 10
Waste is Everywhere
Ask these 3 questions to know if the step is value added:
Non-Value Added but Necessary
Is the customer willing to pay for this specific step? 1
30%
Does the step transform the product or service? 2
10%
60%
Value
Added
Was the step done first time correctly? 3
Non-Value Added (Waste)
If one if the answers is NO, then the step is waste. 10

11. The 8 Types of Waste The first step is seeing the waste! D O 1 2 W N E
Photo Credit Tim and Selena Middleton
The 8 Types of Waste
Muda (Surface wastes) D O W N E M I T
Defects 1
Over Production 2
Waiting 3
Non-Utilized Talent 4
Transportation 5
Photo Credit Tim and Selena Middleton @
Inventory 6
Motion 7
The first step is
seeing the waste!
Extra Processing 8 11

12. Doing more than required
Photo Credit Hussain Al-Ahmed
Overproduction
Doing more than required
Every years billions of dollars are lost because of excess medicines prescribed by doctors.
Producing more products or services than the customer needs or downstream process can use right away.
Examples:
Oversupply
Wasted raw material
Too many meetings
Not required work
A report that no one reads
Sending unnecessary s
Common Causes:
Unclear customer demand
Push production system
The production line cannot be stopped
Long and complicated changeovers
Unbalanced work flow
Poor worker distribution
Batching
Unused prescribed medicine costs the UK about 300 million GBP every year. 400 billion usd in US. 12 12

13. Inventory How much is needed?
Storage
Unnecessary storage of information and material
Physical Inventories
Queues of customers
Digital Information in database
How much is needed?
Examples:
Too much stock in the warehouse
High backlog or WIP (Work In Process)
Customers waiting to be served
System transactions waiting for actions
Unread and undeleted s
Old and outdated documents
Duplicate files
Common Causes:
Overproduction
Batching
Late inventory updates
Material replenishment system problems
Disconnected storage locations 13
Photo Credit Wikipedia

14. Inventory hides problems
High Inventory
Inventory
Why is it a problem?
Phyical invnetory ties up working capital
Time-Cost to the waiting customer
Cost of system setup access, update and miantenance
Cost
Items requires storage space
Customers require waiting area
IT system requires memory, security and special environment
Space
Inventory hides problems
Physical items may deteroriate over time or obselete
Customers may get upset if they wait for too long
Data may get corroupted or lost
Quality
Reducing Inventory
Physical inventories may hide problems
Waiting customers may put undue pressure on the staff causing quality issues
Databse needs constant management, acess control and maintenance
Operations 14
Source: adapted (Slack etl, 2009)

15. Will he add value by moving the books?
Photo Credit Garry Knight
Transportation
Moving things
Moving products, equipment, material, information, or people from one place to another.
Examples:
Shipping products
Mobilizing equipment and people
Moving material in the shop
Moving spare parts
Forklifts and cranes
Moving marketing material for tradeshows
Common Causes:
Poor facility layout (distance and sequence)
Poor planning and communication
Not leveraging technology
Overproduction and high inventory
Improper storage solutions
Shop Examples:
Transporting people
Moving equipment
Getting spare parts from the store
Shipping products
Office Examples:
Routing documents
Paperwork hand-offs
Carrying files
Will he add value by moving the books? 15 15

16. Motion Are they working?
Searching
Unnecessary movement of people or machines that takes time and uses energy and may create health and safety risks.
Examples:
Searching for hand tools or material
Going to the supervisor office
Excessive reaching or bending
Walking to find people or information
Trips to copier machine or printer
Extra computer clicks
Looking for specific files in computer
Searching in the web
Common Causes:
Facility layout
Shared hand tools
Workstation design
Poor workplace organization and housekeeping
Manual processes and not leveraging technology
Ineffective information sharing
Are they working? 16 16
Photo Credit Hussain Al-Ahmed

17. How much will it cost to fix this!
Defects
Rework / Correction/ Errors
The efforts involved inspecting for and fixing errors, mistakes.
Examples:
Failed outgoing equipment inspection
Quality problems and failures
Corrections and rework
Scrap and junk
Returned documents and invoices
Rejected paperwork
Incorrect approval chain
Unsaved computer work
Common Causes
Lack of standard work
Training problems
Unclear or complex process
Voice of the customer is absent
Missing or incomplete information
How much will it cost to fix this! 17 17

18. Waiting Keep Calm and Just Wait!
Photo Credit Hussain Al-Ahmed
Waiting
Delays
Idle time created when material, information, people, or equipment is not ready
Examples:
Operator waiting for machines to finish cycling
Waiting for Forklift
Products waiting for people
People waiting for material
People waiting for other people
Waiting for information, decisions or approvals
Waiting for customer specifications
Waiting for supplier confirmation
Slow or broken computers or internet
Common Causes
Unbalanced work flow
Lack of workers
System down time
Machine breakdowns
Keep Calm and Just Wait! 18 18

19. Ready to cut the apple in half?
Extra Processing
Overdoing it
Ready to cut the apple in half?
Process steps that do not add value to the product or service, including doing work beyond a customer’s specification.
Examples:
Complex checklists with unused fields
Highly sophisticated machines for simple tasks
Curing material longer than engineering requirements
Doing maintenance more often than necessary
Approval queues
Printing every
Collecting unused data
Common Causes
Not questioning the status quo
Unclear customer requirements
Lack of trust and control issues
Poor communication
Lack of effective and creative problem solving 19
Photo Credit Hussain Al-Ahmed

20. Switch off during work hours!
Non-Utilized Talent
Not involving people
Not adequately leveraging peoples’ skills and creativity
Examples:
Technicians spending time doing paperwork
Engineers not trusted
Not involving people in improvements
Not utilizing people’s indirect skills
Common Causes
“The boss knows everything” thinking
Misusing position power
Narrowly defined jobs and expectations
No effective suggestions and improvements procedures
Boundaries between different levels of the organizations
OFF
Switch off during work hours! 20

21. MUDA The 8 Types of Waste Defects Transportation Overproduction
Do you remember them?
Defects
Transportation
Overproduction
Inventory
MUDA
Waiting
Motion
Non-Utilized Talent
Extra Processing 21

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Zulfa Management Consulting
@zulfa.team
@zulfateam