The 8 Deadly Wastes

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Presentation Description

To start a Lean initiative in your organization, it is absolutely essential that all employees are able to recognize the eight types of waste (or "muda" in Japanese) that are all around them. The ability to identify waste is the first step towards their elimination. You can use this highly visual presentation to run a half-day workshop or awareness session to educate employees on the concept of value and waste, the eight types of waste in manufacturing and office, and motivate them to adopt a positive attitude toward making improvement to their work areas and processes. This presentation can easily be integrated with your own Lean training materials focusing on waste analysis, elimination and prevention techniques such as 5S principles, Kaizen, Value Stream Mapping, PDCA Problem Solving, etc. to create a comprehensive Lean training program. In addition, this presentation can also be uploaded onto your organization's intranet or e-learning system as part of your Lean communication and education deployment strategy. Learning Objectives 1, Understand the key concept of waste 2. Learn to recognize the eight types of waste in your work areas and processes 3. Adopt a positive attitude to waste elimination Contents 1. What is Waste? 2. The 8 Deadly Wastes in Manufacturing 3. The 8 Deadly Wastes in Office 4. The Attitude for Eliminating Waste

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Presentation Transcript

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© Operational Excellence Consulting THE 8 DEADLY WASTES © Operational Excellence Consulting INVENTORY MOTION TRANSPORTATION WAITING OVER-PRODUCTION DEFECTS OVER-PROCESSING NON-UTILIZED TALENT

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2 © Operational Excellence Consulting 2 Learning Objectives Understand the key concept of waste Copyrights of all the images used in this presentation are held by their respective owners. Learn to recognize the eight types of waste in your work areas and processes Adopt a positive attitude to waste elimination NOTE: This is a PARTIAL PREVIEW. To download the complete presentation please visit: http://www.oeconsulting.com.sg

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3 © Operational Excellence Consulting 3 1 2 3 4 The 8 Deadly Wastes in Manufacuring What is Waste The 8 Deadly Wastes in Office The Atude for Eliminang Wastes Outline

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4 © Operational Excellence Consulting 4 Introduction to The Eight Deadly Wastes §  The most difficult part of an improvement process or problem solving effort is often the first step §  For improvement to occur individuals involved in the improvement process have to discover the underlying waste and begin to see the improvement potential §  This training presentation will teach you the widely adopted “Toyota waste model” which you can use to identify waste in your processes and work areas

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5 © Operational Excellence Consulting 5 Five Ways to Increase Production How to Increase Productivity Quantitative Approach More Workers More Machines Work Longer Qualitative Approach Work Harder Eliminate Waste Simplify Current 1 Man 1 Machine 100 Units 1 Hour Future 1 Man 1 Machine 120 Units 1 Hour TPS Goal

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6 © Operational Excellence Consulting 6 Work versus Waste Value Add Non-Value Add: Incidental Waste Non-Value Add: Pure Waste Focus here for improvement

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7 © Operational Excellence Consulting 7 Work versus Waste §  Consume resources but creates no value for the customer §  Could be stopped and it would be invisible to the customer Non-Value Add: Pure Waste §  Transform or shape material or information §  Customer wants it and willing to pay for it §  Done right the first time Value-Added Activities §  No value created but required by current thinking §  No value created but required by process limitations §  No value created but required by current technology §  No value created but required by government/ business regulations Non-Value Add: Incidental Waste

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© Operational Excellence Consulting “Waste is 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.” Shoichiro Toyoda President Toyota Definition of Waste

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9 © Operational Excellence Consulting 9 Benefits of Identifying Eliminating Waste §  To the Company •  Cutting the hidden costs of production •  Increased customer satisfaction §  To the Employees •  Increased job satisfaction •  Contributing to improvement

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10 © Operational Excellence Consulting 10 Cost Reduction Principle Cost Plus Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Cost Reduction Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Higher profit is achieved by increasing sales price Higher profit is achieved by reducing cost waste while maintaining sales price

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11 © Operational Excellence Consulting 11 The 8 Deadly Wastes OVER-PRODUCTION DEFECTS OVER-PROCESSING NON-UTILIZED TALENT Producing more than what the customer needs Not using employees full intellectual contribution Adding extra value when the customer does not require it Scrap rework data errors or missing information in documents INVENTORY MOTION TRANSPORTATION WAITING Building or storing extra products that the customer has not ordered Employees waiting for another process equipment or person Moving raw materials or documents or traveling from one place to another Extra physical/mental motion that does not add value

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12 © Operational Excellence Consulting 12 The 8 Types of Waste in a Production System Transportation Processing waste Inventory Defects Overproduction production methods Motion waste operation methods Waiting time imbalances Intellectual waste Retention Inspection Processing Retention Transportation

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13 © Operational Excellence Consulting 13 Waste in Manufacturing §  Inventory stockpiling or building ahead of schedule §  Purchasing materials before they are needed §  Producing more to “make up” for production losses such as defects §  Delivering more than what was ordered §  Unbalanced material flow §  Exceeding scope of agreement OVER-PRODUCTION Producing more than what the customer needs

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14 © Operational Excellence Consulting 14 Waste in Manufacturing §  Waiting for materials or equipment to be delivered §  Person waiting for machine machine waiting for person person waiting for person §  Waiting due to quality issues §  Waiting for breakdown to be resolved §  Waiting for instructions approvals information or decisions §  Seeking clarifications due to unclear communications §  Stockouts WAITING Employees waiting for another process equipment or person

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15 © Operational Excellence Consulting 15 Waste in Manufacturing §  Manufactured items that do not meet the customer’s specifications §  Products that are shipped to the wrong address §  Order entry errors design errors engineering errors and mistakes §  Scrap rework replacements and inspections §  Incorrect schedules and information §  Extra people to inspect rework or repair DEFECTS Scrap rework data errors or missing information in documents

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16 © Operational Excellence Consulting 16 Waste in Office §  Shelves of unused office supplies §  Stacks of promotional literature or pre- printed forms §  Inventory of never-been-used office equipment §  Excess facilities materials and information §  Excess storage space §  Obsolete databases files and folders §  Emails waiting to be read §  Files waiting to be worked on INVENTORY Building or storing extra products that the customer has not ordered

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17 © Operational Excellence Consulting 17 Waste in Office §  Complex purchasing processes with multiple approval levels §  Sending emails and cc-ing the entire organization §  Repeated manual entry of data §  Multiple formats for the same information §  Excessive reporting §  Excessive documentation §  Redundant approvals checkers checking on checkers OVER-PROCESSING Adding extra value when the customer does not require it

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18 © Operational Excellence Consulting 18 Waste in Office §  Employees do not have the opportunity to learn new skills or utilize hidden ones §  Employees are not involved in process improvement or problem solving §  Time is spent correcting errors or responding to emergencies §  Workers are not given the chance to advance within the company §  Narrowly defined jobs and expectations §  Mismatched work functions with skill sets NON-UTILIZED TALENT Not using employees full intellectual contribution

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19 © Operational Excellence Consulting 19 Activity 1: Identify Waste Instructions: 1.  Reflect on the eight types of waste. 2.  In your respective groups identify the specific types of waste that you have observed or experienced in your shopfloor or office. 3.  List your findings on the flip chart. 4.  Present your findings to the class. 15 minutes

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20 © Operational Excellence Consulting 20 Activity 2: Eliminate Waste Instructions 1.  In your respective groups based on the list of wastes that you have identified in Activity 1A/1B select one or two specific wastes that your team/function would like to eliminate over the next 100 days. 2.  What are the reasons for your selection What would be the potential benefits to be gained 3.  List your findings on the flip chart. 4.  Present your findings to the class. 15 minutes

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21 © Operational Excellence Consulting 21 About Operational Excellence Consulting §  Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. §  One of our unique strengths is going beyond a tools-focused approach to seamlessly integrate people processes technology and continuous improvement initiatives to suit the specific needs and situations of our clients. §  We provide corporate learning programs and management advisory services to assist our clients to achieve breakthrough in business performance and effectiveness. Our aim is to support our clients in designing managing and executing lasting beneficial change.

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© Operational Excellence Consulting END OF PREVIEW To download this presentation please visit: www.oeconsulting.com.sg

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