Eight Areas of Waste PDF

Chapter 7 EIGHT AREAS OF WASTE Krizsamei Mangila October 3, 2024  WASTE Loss of something valuable that occurs because too much of it is being used or because it is being used in a way that is not necessary or effective. An action or use that results in the unnecess...

Chapter 7 EIGHT AREAS OF WASTE Krizsamei Mangila October 3, 2024  WASTE Loss of something valuable that occurs because too much of it is being used or because it is being used in a way that is not necessary or effective. An action or use that results in the unnecessary loss of something valuable. A situation in which something valuable is not being used or is being used in a way that is not appropriate or effective. PROPER PLANNING Step-by-step activities PROPER EXECUTION Performance monitoring Issue identification and remediation  THE TOYOTA PRODUCTION SYSTEM (TPS) MUDA MURI MURA Overburden Inconsistency Eliminate Waste  EIGHT AREAS OF WASTE D Defects O Overproduction WWaiting N Non-utilized Talent T Transporting I Inventory MMotion E Extra Processing  EIGHT AREAS OF WASTE D Defects “A physical problem that causes something to be less valuable, effective, healthy, etc., something that causes weakness or failure and an imperfection that impairs worth or utility.” Causes: Machine wear Human error due to lack of training Unclear specifications Tampering Broken machines due to neglect or conflicting priorities  EIGHT AREAS OF WASTE D Defects Qualitative attributes Appearance Size Timeliness of delivery Symmetry between the item and the price charged Auditors should... ascertain what the expectations are in the first place, then compare the end result to that standard. be attuned to process specifications and help organizations improve upon them.  EIGHT AREAS OF WASTE O Overproduction Production of a given output in excess of what is required. Batch production often embraced as a best practice to take advantage of economies of scale. The greater the quantity of a product produced, the lower the per-unit fixed cost will be since the costs are shared over a larger number of goods.  EIGHT AREAS OF WASTE O Overproduction To address risks, organizations... Perform cycle and physical counts Build/Rent and use climate-controlled facilities Implement access controls Build an infrastructure to address overproduction  EIGHT AREAS OF WASTE O Overproduction In a service environment, some useful questions include: Are employees printing, faxing, or e-mailing more than what is needed to get the necessary work done? Is repetitive information being entered on multiple documents or forms? Are more tests or services being ordered than what the customer needs?  EIGHT AREAS OF WASTE W Waiting Delayed action that happens until some other productive action is done on the item produced. Usually nonvalue added, as the goods await further action at a subsequent time. Lack of coordination and timing between complementary activities within an organization or a process.  EIGHT AREAS OF WASTE W Waiting Instances when it is required: Painting Waiting until the primers dries before putting the paint on. Concrete is laid down Must cure before additional work is done with it and this wait-state cannot be rushed.  EIGHT AREAS OF WASTE W Waiting If the delay is because of missing information: Could the request be processed faster? Could the individual who needs it obtain it himself? Could it be requested earlier in the process so it is available at the time and place where it is required to continue processing?  EIGHT AREAS OF WASTE W Waiting Auditors... Examine what is happening, where, why, and by whom, then recommend improvements to the process that will allow production to materialize more evenly.  EIGHT AREAS OF WASTE N Non-utilized “Our employees are our greatest asset” Employees are a resource. Talent Employees should be given every opportunity (Underutilized Employees) to work in, and get promoted to, the position where they can use their skills and talents to their full potential. Business leaders should perform skill assessments in their organizations to identify the entity’s present and future needs.  EIGHT AREAS OF WASTE N Non-utilized DECREASED PRODUCTIVITY Organizations waste... Talent human potential of creativity, energy, and (Underutilized Employees) synergy that engaged workers can give. compensation given to those workers because they are not getting the maximum benefit in return.  EIGHT AREAS OF WASTE N Non-utilized Internal auditors should audit employee engagement Talent as is influences productivity, retention, customer (Underutilized Employees) satisfaction, and the quality of internal control. EIGHT AREAS OF WASTE T Action of moving an item from one location to another. In general... unnecessary movement of parts, excessive Transporting handling of materials, or shuffling of inventory to get access to the correct components. In a service environment... time wasted on unnecessary transportation. In hospital settings... additional fatigue, stress, and hinder alertness in nurses increasing the unproductive use of nurses’ time EIGHT AREAS OF WASTE In workplace settings... poor floor layout and large batch sizes shared machines T Transporting Telematics Installed GPS tracking equipment Sensors in key areas such as brakes, seat belts, engine box, and on the exterior Idle time and route efficiency EIGHT AREAS OF WASTE Unnecessary transportation... incurs additional fuel and time costs increases the likelihood of accidents and damage to merchandise T Transporting Ways to reduce transportation waste 1. Reduce batch sizes, focus on single-unit processing 2. Design work cells so they are product oriented EIGHT AREAS OF WASTE Consists of goods, parts, and materials on hand as input for other production items or sale to customers. I Inventory Excess products, materials, parts, and documentation not being processed immediately, or ahead or requirements, constitute unnecessary inventory. EIGHT AREAS OF WASTE All inventory incur carrying costs I Inventory Ties up needed capital If not needed, written off as excess and obsolete EIGHT AREAS OF WASTE Takes place because people or equipment is operating in a poorly designed work environment. M Motion Poor layout of the workspace Insufficient consideration of ergonomic issues Excess motion while searching for misplaces items during production EIGHT AREAS OF WASTE Individual motion financial and time waste M Motion physical ailments such as repetitive motion disorders (RMDs) potential cost is the increase in workers’ compensation insurance premiums EIGHT AREAS OF WASTE M Motion method of viewing data to visualize the flows through systems effective tool to track routing through factories and other types of workplace EIGHT AREAS OF WASTE E Go paperless? Paper records Paperless expensive to create, save money maintain, and increase Extra Processing (Unnecessary Paperwork protect productivity or Processing) difficult to sort, save space analyze, and inspect documentation and expensive to track, information sharing update, and retrieve is easier resource intensive help the environment EIGHT AREAS OF WASTE Technologies available: E-forms Workflow applications E Extra Processing (Unnecessary Paperwork Web servers or Processing) Others... proliferation of PDF adoption of digital signatures  EIGHT AREAS OF WASTE D Defects O Overproduction WWaiting N Non-utilized Talent T Transporting I Inventory MMotion E Extra Processing  IDENTIFYING, ASSESSING, AND PREVENTING THE OCCURENCE OF MUDA Internal auditors... perform audits at the beginning of the entire cycle. can add more value to the business and not only detect anomalies, but actually help management prevent them. can help the organization operate more efficiency and be more likely to achieve its financial and operational objectives. Eight Areas of Waste Model financial implications time utilization implications ecological implications health and safety implications  Chapter 7 EIGHT AREAS OF WASTE Krizsamei Mangila October 1, 2024