1

WASTE REDUCTION AND

PRODUCTIVITY IMPROVEMENT

DAY 1

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

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.

4

EVERY BUSINESS PROCESS HAS THREE BIG LEAKS

Big Leak #1—

Big Leak #2—

Big Leak #3—Variation

5

Every Business Has Two Improvement Focuses

1)

(2)

66

LEAN Thinking

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

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

77

Types of Work – Identifying Waste

Value Adding (VA):

Incidental Work (NVA),

Waste

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

99

The 7 Wastes

Overproduction

Waiting

Inventory

TransportationMotion

Excessive Processing

Defects

1

6

7

5 4

3

2

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 to

be 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

TOOLS FOR WASTE

REDUCTION AND

PRODUCTIVITY

IMPROVEMENT

10

Setup Reduction (SMED)

Poka Yoke

One-Piece Flow

Total Productive

Maintenance (TPM)

Pull System