Simple Lean Value and Waste Training

By: Romains Bos

• Introduction – Value and Waste• Defining Value and Waste• Understanding and Eliminating Waste • Value and Waste• Types of Waste• Examples of Waste• Office Examples of Waste• Benefits of Lean• Remembering the Seven Wastes• Foundations of Project Success

Agenda

Value and Waste

Introduction

Defining Value and WasteValue Added Activity

• Done right the first time• Any activity that changes the form,

fit, function or finish of a product / transaction •Something customers are willing to

pay for•Addresses specific need(s) at a

specific timeand or a specific price

Non-Value Added Activity• Not done right the first time• Takes time / resources / space but

does not add value• Customer is not willing to pay for• All other actions and unwanted

features are by definition — WASTETypical process is 2-5% value-added activities… 95-98% waste!

Types of WasteUnnecessary Waste - adds no value and can be eliminated immediately. "That's embarrassing. Let's stop doing that."

Necessary Waste - adds no value, but is required for the way things are currently done. (e.g. Verification, approvals)

Observe that two things are ALWAYS happening. . .

Things that should be done

Things that should not be done WASTE

WORK

Time

After

Before

Value Added Work

After

Before

Non Value Added Work

Time

“It”…Either Adds Value or Does Not

Understanding and Eliminating Waste

Value and Waste

Value

Unnecessarywaste

Necessarywaste

Rework Missing

information Lack of / Poor

communication

Information that does not (from the viewpoint of the customer) add value to a good or service

Reviewing the business rules

Quality checks Building the metrics Resources consumed by

inefficient or non-essential activities

Designing the organizational tools

Transforming the information Assembling the part Creating the drawing

Examples of Waste

WaitingWaiting

Excess InventoryExcess Inventory

TransportationTransportation

Over ProductionOver Production

Excess MotionExcess Motion

Over ProcessingOver Processing

DefectsDefects

IT examples• Performance and Availability

Issues• Poor technical designs

• Unused HW, SW and / or licenses

• Multiple versions of the same reports or objects

• Required fields not really needed

• Not enough Poka-yoke• Buggy code

• Too many screens• Manually moving data from

one system to another

• Poor integration design• Utilizing non-standard

integration tools

• Over-solutioning (unused features)

• Duplicate functionality• Table scans of complete

databases

• More than one screen / system for the same transaction

• Input fields not organized

• Credit application awaiting approval

• Invoices waiting to be paid

• Missed customer due dates

• Data entry errors

• Duplicate entries

• Shipping hard copies that requiring signatures

• Running a credit check for every customer inquiry

• Looking / Searching for data and info

• Printing material for personal use

Transaction examples Product examples• Expensive machine running

at 30% capacity

• Material between operations and process steps

• Buffer & safety stock inventory

• Poor quality or fit of materials

• Handwork…polishing, deburring

• Conveyance of any materialsand tooling

• Conveyance systems

• Sub-assemblies and components between feeder and main line

• Operators bending, twisting, turning and reaching

• Machines “cutting air”• Robotic motion getting home

Office Examples of WasteDefects

• Data entry errors• Other order entry or invoice errors • Any error that gets passed downstream -

only to be returned for correction or clarification

• Changes (Not requested by the customer)• Design flaws• Employee turnover• Absenteeism

Office Examples of Waste - Cont’d

Over Production

• Printing paperwork (That might change) before it is needed

• Processing an order (That might change) before it is needed

• Any processing that is done on a routine schedule - regardless of current demand

Office Examples of Waste - Cont’d

Excess Inventory

• Purchasing or making things before they are needed (Think office supplies, literature...)

• Things waiting in an (Electronic or physical) In Box

• Unread email• Any form of batch processing (e.g.

Transactions, reports...)

Office Examples of Waste - Cont’d

Over Processing

• Relying on inspections / auditors or quality checks, rather than designing the process to eliminate errors

• Re-entering data into multiple information systems

• Making extra copies • Generating unused reports• Expediting• Unnecessarily cumbersome processes

(Think financial statement period end close, expense reporting, the budget process...)

Office Examples of Waste - Cont’d

Excess Motion

• Walking to copier, printer, fax... • Walking between offices • Central filing• Going on a "safari" to find missing

information• Backtracking back and forth between

computer screens

Office Examples of Waste - Cont’d

Transportation

• Movement of paperwork • Multiple hand-offs of electronic data • Approvals • Excessive email attachments • Distributing unnecessary Cc copies to

people who don't really need to know

Office Examples of Waste - Cont’d

Waiting

• Slow computer speed • Downtime (Computer, fax, phone...) • Waiting for approvals • Waiting for information from customer • Waiting for clarification or correction of work

received from upstream process

Office Examples of Waste - Cont’d

Confusion

• Any missing or misinformation • Any goals or metrics that cause uncertainty

about the right thing to do

Unsafe or Un-ergonomic

• Office work conditions that cause carpel tunnel, eye fatigue, chronic back pain, or that compromise the health and productivity of workers in any way

Office Examples of Waste - Cont’d

Under Utilized Human Potential(Performance / Talent)• Restricting employee's authority and responsibility to

make routine decisions • Having highly paid staff do routine tasks that don't

require their unique expertise • Not providing the business tools needed to perform

and continuously improve each employee's assigned work

• Not trusting your people to stop production in order to stop and fix a problem

• Not trusting people with a flat organization structure of largely self-directed teams

• Not expecting (and measuring) every person to contribute to continuous improvement

Excess Inventory

Full inboxes, lengthy To-Do lists, long work queues

Defects Memos / emails / documentation containing spelling and grammar errors

Waiting Delaying a meeting until a coworker returns from vacation

Over Production Excessive e-mail Cc’ing

Over Processing Routing documents for approval

Excess Motion Walking to the copier, printer, and fax machine

Transportation Interoffice mail / information

Business Process Analogues

Benefits of Lean

• Reduced Cycles• Better Delivery• More Capacity• Better Quality• Productivity

Improved CustomerSatisfaction

. . . Any Process or Value Stream

After

Before

Wait / Waste . . .Non Value Add TimeWait / Waste . . .Non Value Add Time

Lean Attacks Waste Here

Work . . . Value Add Time Work . . . Value Add Time

Lead Time / Cycle Time

Remembering the Seven WastesAn easy way to remember the seven wastes is TIMWOOD• T: Transportation• I: Inventory• M: Motion• W: Wait• O: Over

Processing• O: Over

Production• D: Defect

Another easy way is NOW TIME: It's now time to eliminate Mudas• N: Non Quality• O: Over

Production• W: Wait• T: Transportation• I: Inventory• M: Motion• E: Excess

Processing

An even better way is DOWNTIME which includes the all important 8th waste of Non Utilized Talent• D = Defects• O = Over

Production• W = Waiting• N = Non Utilized

Talent• T = Transportation• I = Inventory• M = Motion• E = Excess

Processing

Foundations of Project Success

Scope and Requirements

Sch

ed

ul

eProject Success

Qualit

y

Cost

Integrity and Safety

The End

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