1. “Without the Cost of Waste …”
Learn to Manage your Business
“Without the Cost of Waste …”
Here’s some simple
Waste Elimination Tips
applicable to every process.

2. Dissatisfaction / Constant Turnover
Tip of the
Some waste you can not see until you dig! COPQ = MUDA = WASTE = MONEY !! Start digging.
Dissatisfaction / Constant Turnover

3. Principles of Effective Process Management
Safety First
Waste elimination
Responsiveness to change
Right things, right place, right time
Effective relationships within the value chain
Continual improvement
Optimal first delivered unit quality
Some principles of Lean Thinking -- with Waste Elimination as one of the guiding principles

4. Fundamental Concept of Lean Thinking Waste Elimination
Waste: Anything other than the minimum amount of equipment, materials, parts, space and worker’s time, which are absolutely essential to add value to the product or service
Waste =
Money Down the Drain
This is the GOAL that drives us to proactive continual improvement everyday.

5. Types of Waste Defects Over-Production Waiting
Not necessary – excessive processing, mass
inspection, alignments, adjustments
Transportation
Inventory
Motion
Employees Underutilized
Easy way to remember: DOWNTIME
Ask the session participants for any other types of waste they can think of.

6. Causes of Waste Layout (Distance) Long Setup Time
Lack of Reliable Processes
Lack of Preventive Maintenance
Inconsistent Work Methods
Lack of Training
Lack of Discipline
Inconsistent Performance Measures
Ineffective Production Planning or Scheduling
Lack of Workplace Organization
Poor Supplier Quality or Reliability
Again, ask for the participants to add to the list

7. Tips to Eliminate Waste:
Waste of Defects
Rework, Repair, or Scrap
Cost of Material, Labor, and Equipment Usage
Cost of Returns, Customer Dissatisfaction
Tips to Eliminate Waste:
Mistake Proofing
Reduce Batch Size
Implement Work Cells
Initial Process Capability
Build Quality Into Process / Not Inspecting It In
Anytime the product or service deviates from the established Value Stream, the costs grow uncontrollably because they are now outside normal process controls.

8. Waste of Over-Production
To Produce More Than Required
To Produce Before Required
Tips to Eliminate Waste:
Develop Continuous Process Flow
Produce Only What the Customer Wants - When the Customer Wants It
Eliminate Batching & Queue Processes
Waste by Over-Production can lead to Flow, Pull and Takt Time discussions.

9. Tips to Eliminate Waste:
Waste of Waiting Time
Employee Waits for Machine, Tools, Material, Maintenance, Supervisor, Etc.
Machine Waits for Maintenance, Operator, Material, Tooling, Changeovers, Etc.
Tips to Eliminate Waste:
Balance Flows
Utilizing Work Cells
Planning and Scheduling
Set-Up Time Reduction
One of the guiding principles of the Toyota Production System:
Nowhere in the Toyota Production System is there a statement claiming that it is necessary to improve machine’s operating rates, only that machines must be ready for operation when needed.
In other words, it is essential to have enough capacity to operate under conditions of increased demand. This is quite different from the conventional concept of machine efficiency.

10. Waste of Not-necessary - Excess Processing
Poor Design of Parts; Alignments
Poor Maintenance of Equipment; Extra Adjustments
Poor Instructions and Training; and re-training
Mass Inspection – Sorting - Reworking Parts
Tips to Eliminate Waste:
Modifying Equipment or Dies
Modifying Design of Parts
Cleaning Area (5S) and Maintenance Equipment
T.P.M. Total Productive Maintenance
Implementing Work Cells
Advance Product Quality Planning or Advanced Quality Systems (AQS) can address problems/ issues prior to them being launched with the product or service.
Standardized Work & Work Instructions, coupled with Education and Training are needed.
Total Productive Maintenance deals with the issues of both Predictive and Preventive Maintenance.

11. Waste of Transportation
Double or Triple Handling
Long Distance Moving of Materials and Tools
Tips to Eliminate Waste:
Move Operations Close Together (Work Cells)
Combine Jobs
Standardize Part Handling
When thought about with a clear head, this is common sense. (Which is uncommon these days…)

12. Tips to Eliminate Waste:
Waste of Inventories
Excessive Raw Materials
Excessive Finishing Goods
Excessive Work in Progress
Excessive Supplies
Requires Extra Handling, Space, Paperwork
Tips to Eliminate Waste:
Dispose of ALL Obsolete Material
Only Produce Items Required by Next Operation
- (Line Balance)
Reduce Purchasing Items in Large Lots
Manufacture in Smallest Lot Possible (GOAL: 1Piece)
Ask the group the question, “Why do we carry inventories?” Allow them to brainstorm the answers to this question, and then ask what it would take to eliminate a few of these reasons why we carry inventories.
More times then not, the group will come up with exactly what is required to begin eliminating excessive inventories.
You can also label the “Rocks” of the “Hidden Factory” with the answers of the above question. Then show the boat floating on the water above all of these problems. This graphically shows that we historically carry inventory so we will not have to deal with the “Hidden Factory” problems in our processes.

13. Tips to Eliminate Waste:
Waste of Motion
Walking to and From for Tools, Parts, Material, and Equipment
Searching for Tools, Parts, and Material
Long Set-up Times
Tips to Eliminate Waste:
Good Housekeeping (5S)
Cellular Layout
Combining Operations
Reducing Changeover/ Set-up Time
Stress the importance of 5S implementation.
This is perhaps the first step anyone should take when implementing “Lean” since it allows you to organize your work area(s) prior to implementing more sophisticated “Lean” concepts.

14. Waste of Employees Underutilized
People Not Cross Trained
Lack of Communication
No System to Generate Ideas or Input
People Have No Responsibility or Accountability
Tips to Eliminate Waste:
Develop Work Teams Along Process Flows
Utilize People for Continuous Improvement
Empower People to Be Responsible for Their Areas
It is important to stress the need for direction and vision to support empowered teams. Empowering Teams does not equate to cutting them loose to find their own way.
Cross-Functional utilization takes a much larger role as we mature.

15. Examples of Waste Accumulating Inventory
Waiting for Material to Work On
Machine Breakdown
Looking for Tools
Defects
Rework
Parts Shortage
Temporary Storage
Counting Parts
Ask the group to add to this list. This keeps them involved and not just being talked to.

16. Examples of Waste (continued)
Carrying Heavy Work-piece
Watching the Machine Run
Entering the Inventory Count Into the Computer
Transferring Parts Over a Long Distance
Over-Production and Double Handling
Inspection

17. “Lean” Thinking requires …
Processes that...
Optimize the flow of products and services between stations /sites
Provide seamless and timely information flow
Are defined and controllable throughout the Value chain
Tools that...
Provide enabling technologies (such as CATIA, SPC, Workstations, Intranet, etc) to all employees
Are low cost and flexible (reduce quantity of fixed tooling)
Describes the requirements of Lean

18. “Lean” Thinking requires …
Human Resources that...
Provide a properly trained and informed workforce
Provide career & skill development programs for each employee
Broaden job descriptions to develop a “flexible” workforce
Capital Resources and plans that...
Minimize space utilization and distance traveled
Optimize asset utilization and consumption
Focus on variability reduction
Describes the requirements of Lean

19. Continuous Improvement is about the Continual Elimination of Waste!
Fundamental Concept
Continuous Improvement
is about the
Continual Elimination of
Waste!
End with Q & A Session and ACTION !!

20. “Without the Cost of Waste …”
Learn to Manage your Business
“Without the Cost of Waste …”
Here’s some simple
Waste Elimination Tips
applicable to every process.