2. © ABSL Power Solutions 2007 © STM Quality Limited STM Quality Limited 7 Wastes TOTAL QUALITY MANAGEMENT 7 Wastes

3. © STM Quality Limited STM Quality Limited How often have you used the expressions: “That was a waste of time!” or “That was a waste of money!” or “That was a waste of effort!” Waste

4. © STM Quality Limited STM Quality Limited Wasted Time Just imagine if we could collect all the time together that we have wasted in the past - How much time would that be?

5. © STM Quality Limited STM Quality Limited Wasted Money Just imagine if we could collect all the money together that we have wasted in the past - How much money would that be?

6. © STM Quality Limited STM Quality Limited Wasted Effort Just imagine if we could collect all the effort together that we have wasted in the past - How much effort would that be?

7. © STM Quality Limited STM Quality Limited The Problem With Waste The problem with wasted time, money & effort is: When it’s gone… - it’s gone!

8. © STM Quality Limited STM Quality Limited Eliminating Waste So what can we do to eliminate waste? We first need to identify what is & is not waste, then we can look at ways of eliminating or at least reducing waste.

9. © STM Quality Limited STM Quality Limited Identifying Waste in the Workplace Operational Activity Value added Operations Any process that changes the nature, shape or characteristic of the product in line with customer requirements e.g. Pressing, welding, heat treatment. This is where we make a profit!

10. © STM Quality Limited STM Quality Limited Identifying Waste in the Workplace Operational Activity Non-Value added Operations Work carried out which is necessary under current conditions, but does not increase product value. e.g. Inspection, tool change, maintenance. This is where we make a loss!

11. © STM Quality Limited STM Quality Limited Value Added and Non-Value Added operations The objective is to raise the ratio of Value added operations to non-value added operations and eliminate waste. WASTENON-VALUE ADDED VALUE ADDED OPERATOR TIME VALUE ADDED NON-VALUE ADDED MORE TIME FOR OTHER ACTIVITIES ELIMINATE

12. © STM Quality Limited STM Quality Limited 7W – The Elimination of Waste So, now we understand the difference in value added & non-value added operations, what are the benefits in eliminating all waste? Reduced costs Greater Capacity Bottlenecks are identified

13. © STM Quality Limited STM Quality Limited 7W – 7 Types of Waste 1 Over-production 2 Inventory 3 Transportation 4 Process 5 Idle Time 6 Operator Motion 7 Bad Quality

14. © STM Quality Limited STM Quality Limited 7W – 1. Over-production Over-production Producing more than is needed hides a multitude of problems. Excessive set-up times, machine faults, risk of producing obsolete stock.

15. © STM Quality Limited STM Quality Limited 7W – 2. Inventory Inventory Carrying stock attracts cost & storage problems. Storage leads to stacking, racking, sophisticated computers, bar coding & automation, all for an activity that adds no value to the product.

16. © STM Quality Limited STM Quality Limited 7W – 3. Transportation Transportation This may appear unnecessary but does add value. Large transport is easily identified but small transport such as manual labour may not be so noticeable. These can be improved by changes to the work environment.

17. © STM Quality Limited STM Quality Limited 7W – 4. Process Process Adds cost but no value - e.g.trimming & moulding to a level that is beyond the required standard adds extra time that customers do not want to pay for.

18. © STM Quality Limited STM Quality Limited 7W – 5. Idle Time Idle Time Typically, waiting for products & services from preceding operations, waiting for work from their previous set-up or waiting for cycles to finish, or meetings to start.

19. © STM Quality Limited STM Quality Limited 7W – 6. Operator Motion Operator Motion Typically, single handed operations where both should be used, stretching unnecessarily or awkwardly and walking between things. All of these take time or use time poorly, none add value.

20. © STM Quality Limited STM Quality Limited 7W – 7. Bad Quality Bad Quality Rejects are always produced by systems and procedures created by management. If operators fail it is because the process allowed them to fail through inadequate training or because the process was not capable in the first place.

21. © STM Quality Limited STM Quality Limited 7W – The Elimination of Waste So, now we understand the 7 wastes, we can: Produce only what is needed; Carry only essential stock; Use transportation more wisely; Produce work to the standard required; Plan our production processes; Put our efforts to the best possible use; Train to make quality work every time!