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Lean Service Waste Identification
6/26/2007
Manufacturing Value-Added
The difference between the cost of inputs and the value or price of outputs
Inputs Mat’ls Equip. Capital
Transformation/Conversion
process
Outputs Goods Services
Control
Feedback
FeedbackFeedback
Value added
Manufacturing Value-Added
The difference between the cost of inputs and the value or price of outputs
Inputs Mat’ls Equip. Capital
Transformation/Conversion
process
Outputs Goods Services
Value added
Information
Materials / Products
LeanMfg
People
Measurement Equipment Materials
MethodsEnvironment
Lean ManufacturingTypes of Waste
Overproduction Waiting Transport Extra Processing Inventory Motion Defects
LeanDesign
People
Measurement Equipment Materials
MethodsEnvironment
Service OperationsTypes of Waste
Because there is a different focus in service ops in order to add value, the
wastes come in different forms.
Service Value-Added
The difference between the cost of inputs and the value or price of outputs
Inputs Info Knowledge Time
Transformation/Conversion
process
Outputs Designs Services
Value added
Information
Information
Value-Added
The difference between the cost of inputs and the value or price of outputs
Inputs Info Knowledge Time
Transformation/Conversion
process
Outputs Design Drawing
Control
Feedback
FeedbackFeedback
Value added
LeanDesign
People
Measurement Resources Information
MethodsEnvironment
Lean ServiceTypes of Waste
People Processes Information Resources Measurements Environmental
Lean ServicePeople Wastes
Goal Alignment Assignment Waiting Motion Processing
Lean ServiceProcess Wastes
Control Variation Tampering Strategic Reliability Standardization
Lean ServiceProcess Wastes, continued
Suboptimization Scheduling Work-around Uneven flow Inspection Errors
Lean ServiceProcess Wastes – Causes of Errors
Lack of knowledge, skills, or ability. Mental errors – slips and mistakes. Sensory overload Mechanical breakdown Distractions Loss of memory Loss of emotional control
After LEMJ, GOAL
Lean ServiceInformation Wastes
Inaccurate Information Hand-Off Communication Process Breakdown Translation Missing Information Irrelevancy
Communication Process Breakdown
Encode Decode
Noise
Feedback
Communication Process Breakdown
Encode Decode
Noise
Feedback
Communication Process Breakdown
Encode Decode
Noise
Feedback
Communication Process Breakdown
Encode Decode
Noise
Feedback
Communication Process Breakdown
Encode Decode
Noise
Feedback
Lean ServiceResource Wastes
Inventory Capital equipment Movement
Lean ServiceEnvironmental Wastes
Leadership Physical Emotional Business
Lean ServiceLeadership Wastes
Focus Structure Discipline Commitment People Development
Characteristics of Good Measures
Personal Impact – The causes that affect the outputs are under the control of the people or team who are responsible.
Immediacy – There is little time between changes in the inputs and changes in measured performance.
Characteristics of Good Measures
Proximity – The measure is closer to the performance of the process.
Causality – Measure assesses a cause rather than an effect.
Proportionality – Changes in the measure are proportional to changes in performance.
Characteristics of Good Measures
Customer Focus – Measure reflects performance relative to customer requirements.
References
Office Kaizen by William Lareau The Lean Enterprise Memory Jogger,
GOAL QPC.