ABB Basic Quality Tools Series

Lean and 7 Wastes

Introduction to Lean approach and waste reduction

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Lean and 7 Wastes - Content

What is it for?

Speeding up the order-to-cash cycle Eliminating and reducing the causes of waste. Mostly the waste of time. Ensuring physical improvements are sustained.

A key part of changing mindsets

Where could I use it?

When focusing on quality, cost and delivery performance When physically changing an area When looking for opportunities for improvement As part of engaging with employees

How do I use it?

Focus first on what the customer values Look for value adding, value enabling and waste steps in the process Look for opportunities to eliminate waste and reduce value enabling steps in order to reduce the
time to deliver value to the customer

Risks and how to avoid them

Lose sight of what is value from the customer perspective

Example
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Lean and 7 Wastes - What is it for?

Uses of this tool:
Lean as a principle focuses on time as the means to improve quality cost and delivery performance Time is valuable and must be understood from the customer and the business perspective We all have opportunities to make improvements to the way we work, this will free up our time to add more value We use 7 Wastes as a prompt to help identify waste which we may not realise is there or which we accept and take for granted as part of the process

Expected Benefits:
Focusing on time as a key resource (like costs and people) can give a new perspective on how our business operates and could operate thinking in terms of total throughput time from the customer placing an order to the customer receiving the order can help illuminate opportunities to improve the quality of service to the customer and also make improvements to our quality and cost performance. 7 Wastes can be used on an individual basis to help improve personal time management The focus on time and the break down of a process into value add, value enable and waste steps is a key part of the Lean mindset and approach

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Lean and 7 Wastes - Where could I use it?

Background:
Lean looks to remove waste and focuses on waste in terms of time what is value add, value enabling or waste? The classic 7 wastes are: Transportation Inventory Motion

Uses:
Helps to identify and then define the problem Used when reviewing a process break the process map down into what steps are value adding, value enabling or waste Can help identify key measures to be monitored when making improvements Useful in day to day activity can help with team and personal time management of routine activities such as meetings, use of IT... There are many more wastes, such as: Waste of untapped human potential Waste of Inappropriate control systems 100%

Waiting
Over production Over processing Defects

Waste of energy, water and carbon

V% Value Added +

Non Value Added

W%

Service and office wastes Losing customers...

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Lean and 7 Wastes - How do I use it?

Procedure and Guidance Notes:

Over production

Production of items sooner or in greater quantities than required for customer demand Often caused by poor planning or incorrect bottleneck assumptions

Overproduction discourages a smooth flow of production and leads to excessive work in process inventory. This increases overall delivery times and reduces ROCE. Adds cost, requires space, hides process defects, can encourage damage. Reduces ROCE.

Inventory

Any raw material, Work in Process (WIP) or finished goods which are being stored i.e. no longer having value added to them Caused by overproduction inventory builds up between processes Unnecessary worker movement within a Process

Motion

Caused by poor workplace layout, poor process planning, poor housekeeping, no Standard Operating Procedures. People or Parts that are waiting for a work cycle to be completed Caused by unreliable Supply Chain, bottlenecks, down time

Adds time & cost and can be a safety issue.

Waiting

Creates excessive lead time, causes bottlenecks, causes additional time & cost.

Unnecessary movement of items between processes and inventory

Transportation

Caused, by poor layout and / or process design and planning, unstructured or not understood Value Stream, complex material flow... Processing beyond the value required by the Customer

Leads to increased time & cost to transport & search, and increased Defects due to accidents.

Over processing

Caused by lack of customer focus, Always done it this way attitude, lack of understanding A defect is when the Customer believes they did not get what they paid for. Can have many causes including process variation, customer requirements not understood correctly, mistakes ...

Can result in scheduled work time being longer than needed, Parkinsons Law in project task execution, increases in time & cost. Defects can lead to additional time and cost, and more critically it can reduce customer confidence.

Defects

Overproduction ABB Group 9AKK105151D0118 is considered 15 July 2010,, Slide 5

the "mother of all wastes" since it can lead to increases in all the other forms of waste.

Lean and 7 Wastes - Risks and how to avoid them

Risks :
If time is not viewed as a resource it will not be managed and opportunities to reduce throughput time, reduce costs and improve quality may be missed.

Steps to avoid them :

Use lean tools and techniques (process mapping, VSM...) to make process steps visible. Once this is done, then analyse the process to establish what is value adding, value enabling and waste. What is the customer prepared to pay for? Encourage everyone to look for wastes in their own process and in-between processes in order to find better ways of working. Open discussion about other types of waste how many can your team come up with?

If existing practices are not reviewed and challenged in terms of 7 Wastes (or more) there will be a continued acceptance that the process works fine profits may be eroded and customers may be lost if the current state is not continually improved

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Lean and 7 Wastes - Example

1. Clarify the problem What is the problem for the customer time, cost, quality? 5. Formalise new process Confirm new process, measure and monitor, and create new process map, SOPs etc

2. Map the Process Steps Study the process where the problem occurs

5. Reduce Value Enabling Once waste is eliminated, look to reduce the value enabling content where possible

4. Eliminate waste Plan and execute actions to eliminate the waste steps

3. Analyse the process steps Decide what is value adding, value enabling and waste in the process
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