Lean Wastes

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Hussain Yasin Al-AhmedManagement Consultant

@hussain_alahmed

@hyahmed

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Lean is NOT ...Clearing confusions

2

It is not a magic wand or silver

bullet to fix everything

It is not rocket science.

It is simple

It is not a system to reduce

headcount

It is not a diet program

It is not a solution to personnel

or performance issues

It is not only for factories.

It works everywhere



What is Lean?Basic definitions

3

Lean is simply is:

“ A systematic approach to continuously eliminate waste within a process ”

It may be referred to as:•Continuous Improvement•Kaizen•Operational Excellence



What is LeanThe Five Principles

Produce - only what the customer wants,

- only in the quantities they want,

- only when they want it,

- only by doing the tasks that add value.

Identify Value as

Percieved by Cusotmers

Map the Value Stream

Esatblish Customer

PullSystem

Seek Perfection Through Kaizen

Create Flow By Eleminating

Waste

JIT

Just In Tim

e



History of LeanOver 60 Years of Continuous Improvement

5

1911

Frederick Taylor

developed scientific

management principles

1903

Henry Ford

manufactured the first

commercial fuel

engine car

Model A

1908

Ford established its first

assembly line

Model T

Toyota was founded

by Kiichiro Toyoda

and his son

19331950

Edward Deming

made the PDCA

improvement cycle

popular

1946

Toyota suffered

from post war

depression and the

great strike

1913

Ford built the first

moving assembly

line

1970

Taiichi Ohno

finished buidling the

Toyota Production

System (TPS) after WWII

1984

The rise of

Total Quality

Management

(TQM) Theroy

1990

Jack Welch

created Six Sigma and the

Center of Exellence at GE

2000

Continouos Improvement, LSS and

Operational Excellence Strategies are

adopted by many organizations in

different fields

Motorola

initiated Six

Sigma Quality

1980

1939 to 1945

World War II

Formula 1 Pit-Stop Evolution

Movie Time



Why Focus on Process?Why not something else?

8

Inputs Outputs

80%

Process

• Material• Information• Customers

• Products• Services

• Material• Information• Customers

• Resources (people,

facilities, equipment)

• Steps and decisions



Process WasteIs the step value added?

9

Value-Added (VA) Step

Non-Value Added (NVA) Step

(Waste)

Before

After

Lead time = 7 Hours

Lead Time = 3 Hours



Value Added vs WasteWaste is Everywhere

10

30%

60%

10%Value

Added

Non-Value Added

(Waste)

Non-Value Added but

Necessary

Is the customer willing to pay for this specific step?1

Does the step transform the product or service?2

Was the step done first time correctly?3

Ask these 3 questions to know if the step is value added:

If one if the answers is NO, then the step is waste.

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Reserved.

The 8 Types of Waste

Muda (Surface wastes)

Defects1

Over Production2

Waiting3

Non-Utilized Talent4

Extra Processing8

Motion7

Inventory6

Transportation5

Photo Credit Tim and Selena Middleton

The first step is seeing the waste!

11


Reserved.

Overproduction

Doing more than required

12

Producing more products or services than the

customer needs or downstream process can use

right away.

Examples:

•Oversupply

•Wasted raw material

•Too many meetings

•Not required work

•A report that no one reads

•Sending unnecessary e-mails

Common Causes:

•Unclear customer demand

•Push production system•The production line cannot be stopped

•Long and complicated changeovers

•Unbalanced work flow

•Poor worker distribution•Batching

Every years billions of dollars are lost

because of excess medicines prescribed

by doctors.

Photo Credit Hussain Al-Ahmed

12


Reserved.

InventoryStorage

13

Unnecessary storage of information and material •Physical Inventories

•Queues of customers•Digital Information in database

Examples:

•Too much stock in the warehouse

•High backlog or WIP (Work In Process)

•Customers waiting to be served

•System transactions waiting for actions•Unread and undeleted e-mails

•Old and outdated documents

•Duplicate files

Common Causes:

•Overproduction

•Batching

•Late inventory updates•Material replenishment system problems

•Disconnected storage locations

How much is needed?

Photo Credit Wikipedia


Reserved.

InventoryWhy is it a problem?

14

Inventory hides problems

High Inventory

Reducing Inventory

Source: adapted (Slack etl, 2009)

• Phyical invnetory ties up working capital

• Time-Cost to the waiting customer

• Cost of system setup access, update and

miantenance

Cost

• Items requires storage space

• Customers require waiting area

• IT system requires memory, security and

special environment

Space

• Physical items may deteroriate over time or

obselete

• Customers may get upset if they wait for too

long

• Data may get corroupted or lost

Quality

• Physical inventories may hide problems

• Waiting customers may put undue pressure on

the staff causing quality issues

• Databse needs constant management, acess

control and maintenance

Operations


Reserved.

TransportationMoving things

15

Moving products, equipment, material,

information, or people from one place to another.

Photo Credit Garry Knight

Will he add value by moving the books?

15

Examples:

•Shipping products

•Mobilizing equipment and people

•Moving material in the shop

•Moving spare parts

•Forklifts and cranes

•Moving marketing material for tradeshows

Common Causes:

•Poor facility layout (distance and sequence)

•Poor planning and communication

•Not leveraging technology

•Overproduction and high inventory

•Improper storage solutions


Reserved.

MotionSearching

16

Unnecessary movement of people or machines that

takes time and uses energy and may create health

and safety risks.

Examples:

•Searching for hand tools or material

•Going to the supervisor office•Excessive reaching or bending

•Walking to find people or information

•Trips to copier machine or printer

•Extra computer clicks

•Looking for specific files in computer

•Searching in the web

Common Causes:

•Facility layout

•Shared hand tools

•Workstation design

•Poor workplace organization and housekeeping

•Manual processes and not leveraging technology

•Ineffective information sharing Are they working?Photo Credit Hussain Al-Ahmed16


Reserved.

DefectsRework /

Correction/ Errors

17

The efforts involved inspecting for and fixing

errors, mistakes.

Examples:•Failed outgoing equipment inspection

•Quality problems and failures

•Corrections and rework

•Scrap and junk•Returned documents and invoices

•Rejected paperwork

•Incorrect approval chain

•Unsaved computer work

Common Causes

•Lack of standard work

•Training problems

•Unclear or complex process

•Voice of the customer is absent

•Missing or incomplete informationHow much will it

cost to fix this!17


Reserved.

WaitingDelays

18

Idle time created when material, information,

people, or equipment is not ready

Examples:

•Operator waiting for machines to finish cycling

•Waiting for Forklift•Products waiting for people

•People waiting for material

•People waiting for other people

•Waiting for information, decisions or approvals

•Waiting for customer specifications

•Waiting for supplier confirmation

•Slow or broken computers or internet

Common Causes

•Unbalanced work flow

•Lack of workers

•System down time

•Machine breakdowns Keep Calm and Just Wait!

Photo Credit Hussain Al-Ahmed

18


Reserved.

Extra Processing

Overdoing it

Process steps that do not add value to the product

or service, including doing work beyond a

customer’s specification.

Examples:

•Complex checklists with unused fields

•Highly sophisticated machines for simple tasks

•Curing material longer than engineering

requirements

•Doing maintenance more often than necessary

•Approval queues

•Printing every e-mail

•Collecting unused data

Common Causes

•Not questioning the status quo

•Unclear customer requirements

•Lack of trust and control issues

•Poor communication

•Lack of effective and creative problem solving

Ready to cut the apple in half?

Photo Credit Hussain Al-Ahmed19


Reserved.

Non-Utilized TalentNot involving people

Not adequately leveraging peoples’ skills and

creativity

Examples:

•Technicians spending time doing paperwork

•Engineers not trusted

•Not involving people in improvements

•Not utilizing people’s indirect skills

Common Causes

•“The boss knows everything” thinking•Misusing position power•Narrowly defined jobs and expectations•No effective suggestions and improvements procedures•Boundaries between different levels of the organizations

OFF

Switch off during work hours!

20



Defects

Overproduction

Waiting

Non-Utilized TalentExtra Processing

Motion

Inventory

Transportation

The 8 Types of WasteDo you remember them?

21

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@zulfa.team @zulfateam

[email protected]+966 59 084 2622

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Lean Wastes

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Transcript of Lean Wastes