1

WASTE REDUCTION AND

PRODUCTIVITY IMPROVEMENT

DAY 1

SAMPLE

You are not paid to work hard. In fact, you are not paid for effort at all. You are paid for

results. It's not what you do; it's what you get done.“

----Larry Winget : Personal success and business author and speaker

2

SAMPLE

EVERY BUSINESS HAS TWO SOURCES OF CASH FLOW

Cash is the lifeblood of your business. To boost profits, you will want to earn more or lose less. Every business has two sources of cash flow:

1. External customers give you money for your products and services.

2. Internal processes that leak cash like a rusty bucket.

—25% to 40% of your expenses.SAMPLE

4

EVERY BUSINESS PROCESS HAS THREE BIG LEAKS

Big Leak #1—

Big Leak #2—

Big Leak #3—Variation

SAMPLE

5

Every Business Has Two Improvement Focuses

1)

(2) SAMPLE

66

LEAN Thinking

1. Identify waste ( as defined by the customer ) and…..

2. Determine appropriate and effective ways to remove waste from the system.

SAMPLE

77

Types of Work – Identifying Waste

Value Adding (VA):Value Adding (VA):

Incidental Work (NVA),Incidental Work (NVA),

WasteWaste

SAMPLE

88

Waste Elimination

Value

AddWaste

Traditional Focus

• Work Longer-Harder-Faster

• Add People or Equipment

Lean Six Sigma• Improve the Value

Stream to Eliminate Waste

LEAD TIME

SAMPLE

99

The 7 Wastes

Overproduction

Waiting

Inventory

TransportationMotion

Excessive Processing

Defects

11

66

77

55 44

33

22

To produce sooner, faster or in greater quantities

than customer demand.

Raw material,

work in progress

or finished goods

which is not having

value added to it.

People or parts that wait for

a work cycle tobe completed.

Unnecessary movement

of people, parts or

machines within

a process.

Unnecessary movement of people

or parts between processes.

Non right

first time.

Repetition

or correction

of a process.

Processing

beyond

the standard

required by the

customer.

is the Japanese word for WASTE.MUDA

Seek it out and get rid!

1

2

34

5

6

7

An 8th waste

is the wasted

potential

of people

SAMPLE

TOOLS FOR WASTE REDUCTION AND PRODUCTIVITY IMPROVEMENT

10

SAMPLE

Setup Reduction (SMED)

SAMPLE

Poka Yoke

SAMPLE

One-Piece Flow

SAMPLE

Total Productive Maintenance (TPM)

SAMPLE

Pull System

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