Waste Reduction

• 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:

The Cycle of Waste

• 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