In the context of Lean, Waste refers to any activity that does not add value for the customer.
The goal of Lean is to eliminate waste and create value for the customer.
In other words, Waste is anything that can be considered "Non-Value-Added" (NVA)
Something is NVA if it does NOT increase the overall worth of a process/product/service, from the perspective of the Customer
The Customer can be the end-user of the product/service of the next person/step of a manufacturing process
Example of things that are NVA:
Excessive packaging on a product
Setting up equipment
Inspecting a part
Billing a customer
With each of these examples, what the Customer values (is paying for/desiring) is not being improved or added to, therefore they are NVA activities
The opposite of waste is anything that can be considered "Value Added" (VA)
Something is VA if it DOES increase the overall worth of an item/process
A third category, called Necessary Non-Value Added (NNVA) is something that does not add value to a process/product/service but is required
NNVA Examples include:
Required financial, legal, government, and/or customer documentation for legal purposes
There are 7/8 kinds of Lean Wastes:
1 - Overproduction
Overproduction = Making more of something than your customer asks/pays for
Overproduction is a type of waste that refers to the production of more than is needed, before it is needed, or faster than it can be consumed.
In the context of Lean, overproduction is considered a waste because it ties up resources (such as money, space, and time) and does not add value for the customer.
Overproduction can take many forms, such as producing more products than customers are currently demanding, producing products that are not of the right quality or specifications, or producing products that are not yet needed in the production process.
Overall, reducing or eliminating overproduction is important in a Lean system because it reduces cost, enhances efficiency and frees up resources to focus on creating value for the customers.
2 - Transportation
Transportation = Movement of products throughout a process
Transportation is a type of waste that refers to the unnecessary movement of materials, parts, or products that do not add value for the customer.
This type of waste is considered a problem in a Lean context because it consumes time and resources, and increases the risk of errors or defects.
Transportation waste can take many forms, such as moving materials, parts or products unnecessarily, or transporting them over long distances.
It may occur, for example, when materials or products are moved from one location to another without any reason, or when parts or materials are moved multiple times before they are used in the production process.
3 - Inventory
Inventory = Storing excess products (AKA: Inventory)
Inventory takes up space that can otherwise be used for more production
Inventory is a type of waste that refers to excess materials, parts, or products that are not being worked on or used.
Inventory is considered a waste in a Lean context because it ties up resources, such as money, space, and time, and does not add value for the customer.
Inventory can take many forms, such as raw materials, work-in-progress, or finished goods.
It can be accumulated due to overproduction, delays in the production process, or changes in customer demand.
4 - Defects
Defects = Anything that interrupts normal flow of a process
Internal Defects – Exists within a process or flow
External Defects – passed onto the customer
Defects is a type of waste in the Lean framework, it refers to any errors or mistakes that require rework or waste resources.
This type of waste is considered a problem in a Lean context because it consumes time, resources, and money and does not add value for the customer.
Defects can take many forms, such as errors in the production process, poor quality of materials, or mistakes in paperwork.
They can also occur due to other types of waste, such as overproduction or waiting, which can lead to materials or products being damaged or expired while they are being stored.
5 - Over-Processing
Over-Processing = Putting more work into a product than what the customer is willing to pay for
Over-processing is a type of waste that refers to any unnecessary or inefficient steps in a process that do not add value for the customer.
This type of waste is considered a problem in a Lean context because it consumes time, resources and money, and does not add value for the customer.
Over-processing can take many forms, such as performing unnecessary testing or inspections, using unnecessary equipment or materials, or duplicating efforts that are already being performed by other processes.
It can also occur when there is a lack of standardization or when there is a lack of understanding of what the customer truly needs and wants.
6 - Motion
Motion = Movement of people, which can include:
Walking, steps
Movement of arms, head, all body parts
Excessive motion is bad for people, especially repetitive motion, and it can cause serious life-altering injuries:
Repetitive Motion Disorders (RMD’s) / Repetitive Strain Injuries (RSI’s), such as:
Carpal Tunnel, Bursitis, Tendonitis, Epicondylitis (“Tennis/Golfer’s Elbow”), Ganglion cyst, Tenosynovitis, “Trigger Finger”, etc.
7 - Waiting
Waiting is a type of waste that refers to delays caused by processes, equipment, or people that are not operating at their full capacity.
This type of waste is considered a problem in a Lean context because it consumes time, resources and money, and does not add value for the customer.
Waiting can take many forms, such as waiting for materials, parts, or information, waiting for equipment to be repaired or maintained, or waiting for approvals or sign-offs.
It can also occur due to other types of waste, such as overproduction or defects, which can lead to delays in the production process.
Customer is waiting for you to finish re-working the product so they may receive it, and the rest of the factory is waiting for you to get back to the main production line
Don’t think waiting is a big deal?
Amazon dominated the US online consumer market by offering free 2-day shipping
Customers don’t like to wait, and in many cases can’t wait! If you’ve got something planned 3 days from now, and you need that product before then, a customer will use Amazon Prime because of their shipping, regardless of whether or not there is a better quality product available elsewhere
8 - Human Potential
Human Potential = Underutilization of people, equipment, or other resources that could be used to create value for the customer
People are the greatest resource in any organization because of their ability to think critically and perform a wide array of tasks instantly
If these unique abilities are not being utilized, then you are wasting your resources
All wastes contribute to Human Potential being wasted
Therefore, we like to view this not as the “8th Waste”, but rather the result of all 7 other wastes
The cycle of waste is a visualization the "7/8 Wastes" of Lean, and the order in which waste multiplies & creates more waste
We do NOT recommend memorizing these wastes, but instead understanding how they related to one another, which will give you a much better grasp of the concepts
Waste can start at any point in the cycle, but almost inevitably they lead to & create additional & different wastes
It is important to address waste when you see it, but if you can also identify the Root Cause of the waste (what waste/wastes started the cycle), and tackle that, you often solve more than one problem at a time
These wastes are often interconnected and can lead to or exacerbate each other. For example:
Overproduction can lead to excess products that need to be...
Transported to storage, also known as...
Inventory, where products can lead to being...
Defective if materials, parts, or products become damaged or expire while they are being stored, which requires...
Over-processing in the form of inspection paperwork, re-work, etc., which when finished needs to be...
Moved back into production, during which the whole time your customer is...
Waiting for the product, all of these wastes ultimately contributing to...
Wasted Human Potential
The Lean Wastes come in many shapes and sizes and also in every aspect of work, life, and society. It is important to be able to identify wastes as you see them, and ideally fix them immediately
One of the easiest ways to identify waste is to think, "What bugs me?"
More often than not, the things you do that are frustrating, annoying, or otherwise unpleasant experiences are likely that way because they contain waste(s)
After identifying what bugs you, you can then determine what kind of waste(s) they are
Once you've identified what kind(s) of waste(s) of waste they are, you can then determine what Lean tool or method would work best towards improving the issue
Some common symptoms of specific wastes include:
Overproduction Symptoms:
Excess inventory, which ties up capital and takes up valuable storage space
Delays and disruptions in the production process as resources are diverted to deal with the excess inventory
Quality issues as materials, parts, or products become damaged or expire while they are being stored
Reduced flexibility and responsiveness to changes in customer demand.
Transportation Symptoms:
Increased lead times as materials or products take longer to travel from one location to another
Increased handling, which increases the risk of damage or defects
Increased inventory as materials or products are stored in multiple locations
Increased costs associated with transportation and handling
Inventory Symptoms:
Tied-up capital and taking up valuable storage space
Delays and disruptions in the production process as resources are diverted to deal with the excess inventory
Quality issues as materials, parts, or products become damaged or expire while they are being stored
Reduced flexibility and responsiveness to changes in customer demand.
Defects Symptoms:
Reduced customer satisfaction due to poor quality products or services
Increased costs associated with rework, scrap, and warranty claims
Delays in delivery of products or services as resources are diverted to fix errors
Reduced efficiency and productivity as resources are diverted to fix errors
Over-Processing Symptoms:
Increased costs associated with unnecessary testing or inspection
Increased lead times as the process takes longer to complete
Reduced efficiency and productivity as resources are wasted on unnecessary steps
Reduced customer satisfaction due to overpriced or over-engineered products or services.
Motion Symptoms:
Increased lead times as the process takes longer to complete
Reduced efficiency and productivity as resources are wasted on unnecessary movement
Increased risk of accidents and injuries
Reduced customer satisfaction due to delays in delivery of products or services
Waiting Symptoms:
Increased lead times as the process takes longer to complete
Reduced efficiency and productivity as resources are idle
Increased costs associated with delays
Reduced customer satisfaction due to delays in delivery of products or services
Human Potential Symptoms:
Reduced engagement and motivation
Reduced productivity and efficiency
Reduced quality of products or services
Reduced flexibility and responsiveness to changes in the market or customer demands
For this challenge, you will be learning to identify & analyze all the different Lean wastes in your day to day life.
The wastes you identify can be from activities at home, school, work, traffic, and/or anywhere else you exist or do things.
Recommend going about your days like normal, with the added thought in your mind: "What bugs me?"
Once you've identified wastes, create a "Lean Wastes" Project page on your portfolio website, and upload documentation your progress, including:
Pictures(s)/Gif(s) and/or Summaries/Descriptions of:
Things that "bug" you
The specific waste(s) identified
You should identify at least one of every (7) waste