Learn to Manage your BusinessLearn to Manage your Business “ “Without the Cost of WasteWithout the Cost of Waste …” …”

Here’s some simple Here’s some simple Waste Elimination TipsWaste Elimination Tips

applicable to every process.applicable to every process.

www.freeleansite.com

Tip of the

Dissatisfaction / Constant Turnover

3

Principles of Effective Process ManagementPrinciples of Effective Process Management

• Safety First

• Waste elimination

• Responsiveness to change

• Right things, right place, right time

• Effective relationships within the value chain

• Continual improvement

• Optimal first delivered unit quality

4

Fundamental Concept of Lean ThinkingFundamental Concept of Lean Thinking

Waste EliminationWaste Elimination

• Waste: 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 or service

Waste

=

Money Down the

Drain

5

Types of WasteTypes of Waste

• Defects

• Over-Production

• Waiting

• Not necessary – excessive processing, mass

inspection, alignments, adjustments

• Transportation

• Inventory

• Motion

• Employees Underutilized

6

Causes of WasteCauses of Waste

• Layout (Distance)

• Long Setup Time

• Lack of Reliable Processes

• Lack of Preventive Maintenance

• Inconsistent Work Methods

• Lack of Training

• Lack of Discipline

• Inconsistent Performance Measures

• Ineffective Production Planning or Scheduling

• Lack of Workplace Organization

• Poor Supplier Quality or Reliability

7

Waste of DefectsWaste of Defects

• Rework, Repair, or Scrap

• Cost of Material, Labor, and Equipment Usage

• Cost of Returns, Customer Dissatisfaction

Tips to Eliminate Waste:• Mistake Proofing

• Reduce Batch Size

• Implement Work Cells

• Initial Process Capability

• Build Quality Into Process / Not Inspecting It In

8

Waste of Over-ProductionWaste of Over-Production

• To Produce More Than Required

• To Produce Before Required

Tips to Eliminate Waste:• Develop Continuous Process Flow

• Produce Only What the Customer Wants - When the Customer Wants It

• Eliminate Batching & Queue Processes

9

Waste of Waiting TimeWaste of Waiting Time

• Employee Waits for Machine, Tools, Material, Maintenance, Supervisor, Etc.

• Machine Waits for Maintenance, Operator, Material, Tooling, Changeovers, Etc.

Tips to Eliminate Waste:• Balance Flows

• Utilizing Work Cells

• Planning and Scheduling

• Set-Up Time Reduction

10

Waste of Not-necessary - Excess ProcessingWaste of Not-necessary - Excess Processing

• Poor Design of Parts; Alignments

• Poor Maintenance of Equipment; Extra Adjustments

• Poor Instructions and Training; and re-training

• Mass Inspection – Sorting - Reworking Parts

Tips to Eliminate Waste:• Modifying Equipment or Dies

• Modifying Design of Parts

• Cleaning Area (5S) and Maintenance Equipment

• T.P.M. Total Productive Maintenance

• Implementing Work Cells

11

Waste of TransportationWaste of Transportation

• Double or Triple Handling

• Long Distance Moving of Materials and Tools

Tips to Eliminate Waste:• Move Operations Close Together (Work Cells)

• Combine Jobs

• Standardize Part Handling

12

Waste of InventoriesWaste of Inventories• Excessive Raw Materials

• Excessive Finishing Goods

• Excessive Work in Progress

• Excessive Supplies

• Requires Extra Handling, Space, Paperwork

Tips to Eliminate Waste:• Dispose of ALL Obsolete Material

• Only Produce Items Required by Next Operation

- (Line Balance)

• Reduce Purchasing Items in Large Lots

• Manufacture in Smallest Lot Possible (GOAL: 1Piece)

13

Waste of MotionWaste of Motion

• Walking to and From for Tools, Parts, Material, and Equipment

• Searching for Tools, Parts, and Material

• Long Set-up Times

Tips to Eliminate Waste: • Good Housekeeping (5S)

• Cellular Layout

• Combining Operations

• Reducing Changeover/ Set-up Time

14

Waste of Employees UnderutilizedWaste of Employees Underutilized

• People Not Cross Trained

• Lack of Communication

• No System to Generate Ideas or Input

• People Have No Responsibility or Accountability

Tips to Eliminate Waste:• Develop Work Teams Along Process Flows

• Utilize People for Continuous Improvement

• Empower People to Be Responsible for Their Areas

15

Examples of WasteExamples of Waste

• Accumulating Inventory

• Waiting for Material to Work On

• Machine Breakdown

• Looking for Tools

• Defects

• Rework

• Parts Shortage

• Temporary Storage

• Counting Parts

16

Examples of Waste Examples of Waste (continued)(continued)

• Carrying Heavy Work-piece

• Watching the Machine Run

• Entering the Inventory Count Into the Computer

• Transferring Parts Over a Long Distance

• Over-Production and Double Handling

• Inspection

17

““Lean” Thinking requires …Lean” Thinking requires …

• Processes that...Processes that...– Optimize the flow of products and services between Optimize the flow of products and services between

stations /sitesstations /sites– Provide seamless and timely information flowProvide seamless and timely information flow– Are defined and controllable throughout the Value chain Are defined and controllable throughout the Value chain

• Tools that...Tools that...– Provide enabling technologies (such as CATIA, SPC, Provide enabling technologies (such as CATIA, SPC,

Workstations, Intranet, etc) to all employees Workstations, Intranet, etc) to all employees – Are low cost and flexible (reduce quantity of fixed tooling)Are low cost and flexible (reduce quantity of fixed tooling)

18

““Lean” Thinking requires …Lean” Thinking requires …

• Human Resources that...Human Resources that...– Provide a properly trained and informed workforceProvide a properly trained and informed workforce– Provide career & skill development programs for each Provide career & skill development programs for each

employeeemployee– Broaden job descriptions to develop a “flexible” workforceBroaden job descriptions to develop a “flexible” workforce

• Capital Resources and plans that...Capital Resources and plans that...– Minimize space utilization and distance traveledMinimize space utilization and distance traveled– Optimize asset utilization and consumptionOptimize asset utilization and consumption– Focus on variability reductionFocus on variability reduction

19

Continuous Improvement

is about the

Continual Elimination

of

Waste!

Fundamental ConceptFundamental Concept

20

Learn to Manage your BusinessLearn to Manage your Business “ “Without the Cost of WasteWithout the Cost of Waste …” …”

Here’s some simple Here’s some simple Waste Elimination TipsWaste Elimination Tips

applicable to every process.applicable to every process.

www.freeleansite.com