Elimination of 7 types of Waste (MUDA)

1Marek.Piatkowski@Rogers.com
Elimination of
Waste
Introduction
Thinkingwin, Win, WIN
Elimination of Waste
Elimination of 7 Types of Waste
Marek Piatkowski – January 2017

Elimination of
Waste
Introduction
Introduction - Marek Piatkowski
 Professional Background
 Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from
1987-1994
 TPS/Lean Transformation Consulting - since 1994
 Professional Affiliations
 TWI Network – John Shook, Founder
 Lean Enterprise Institute (LEI) – Jim Womack
 Lean Enterprise Academy (LEA) – Daniel Jones
 CCM/CAINTRA – Monterrey, Mexico
 SME, AME, ASQ, CME
 Lean Manufacturing Solutions - Toronto, Canada
http://twi-network.com

Elimination of
Waste
Introduction

Elimination of
Waste
Introduction
What is Work and what is NOT Work?

Elimination of
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Introduction
Types of Work
Meaningful Work - work that adds value to a product or advances a product
 Value Added Work - operations which increase a value of a product from the
Customer’s point of view
 Non-Value Added Work – Incidental Work. Work that does not have any particular
value, but it has a cost.
 The higher the value-added operation in your completed work, the higher the level
of production efficiency will be.
 When walking and looking at different operations you will find that the actual
“work” which adds value to the material is surprisingly small, while waste or an
activity which doesn’t increase value of a product is remarkably large.

Elimination of
Waste
Introduction
 Value-added (VA) operations are those activities, which advance a product or
increase the value of the product from the Customer’s point of view
 This includes processing operations such as changing the shape of product,
changing its quality or assembling different components into a large part.
Assembling parts, cutting, stamping, soldering, forging raw materials, tempering
gears, painting bodies are examples of real work or value-added operations
 When walking and looking at different operations you will find that the actual
“work” which adds value to the material is surprisingly small, while waste or an
activity which doesn’t increase value of a product is remarkably large.
Value
Added Work

Elimination of
Waste
Introduction
 Non-Value Added Work (NVA) – Sometimes called Essential or Incidental Work.
 This work that does not have any particular value, value, but must be done to
complete the job. And this work has a cost.
 For example, Non-Value added work includes leaving the workplace to get parts or
tools (walking time), applying labels, packing product, entering information into
data base, testing, filing, unpacking product or picking up parts from a bin
 If we carefully analyze each work process, the equipment and materials being used,
we soon can identify waste and find ways to eliminate it.
Non-Value
Added Work

Elimination of
Waste
Introduction
WASTE
(Muda)
 Waste (Muda) - is NOT work. Waste are activities, motions, behaviors or actions
that are not part of the actual work (non essential activities).
 Waste refers to such things as: waiting, repairing, sorting, inspecting, verifying,
checking, counting and rearranging materials unnecessarily, or handling parts that
are not needed right away
 Two major contributors to Waste:
 Unevenness - fluctuating schedules, planning and production quantities
 Overload - machine or employee pushed beyond natural limits of their capacity

Elimination of
Waste
Introduction
Taiichi Ohno was a Japanese industrial
engineer who became a Toyota Executive.
Taiichi Ohno is considered to be the father of
the Toyota Production System.
Toyota’s Chairman
Fujio Cho
“Waste is anything other than the minimum
amount of equipment, materials, parts and
working time which is absolutely essential to
add values to the product or service”

Elimination of
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Introduction
Types of Work and Activities / Motions
ValueAdded Work
- welding bracket
- cooking
- assembling cover
- painting frame …
Non-Value AddedWork
- loading parts
- walking
- exchanging tools
- applying labels, packaging
Waste
- inspecting
- rearranging parts
- repairing
- waiting …
Waste - Muda
Value Added Work
Motion
Non-Value Added Work

Elimination of
Waste
Introduction
Seven Types of Waste
Unnecessary Transportation
Unnecessary Motion Unnecessary Inventory
Unnecessary Processing

Elimination of
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Introduction
1. Waste of Overproduction
 Overproduction occurs when we produce too much or too early.
 By overproducing we create unnecessary inventories, which require unplanned
storage space and additional material movement.
 This also often results in producing an obsolete product, a product that must be
sold below its cost or it must be scrapped
 Overproduction causes unplanned use of material, manpower and machinery
which should have been allocated to produce other type of final product.

Elimination of
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Introduction
1. Waste of Overproduction
 Producing too much or too soon
 Processing a larger amount than is necessary (producing more parts than required)
 Producing goods at a rate faster than they are needed (producing parts earlier than required - right part
but wrong time)
 Both forms of waste are undesirable, however, particular attention must be paid to the latter since
parts should not be produced earlier than necessary.
 One of the basic production principle of Lean is to produce to customer demand, that is producing
only what is necessary, when it is needed, and in just the amount needed.
 Waste of Overproduction occurs when an operator uses a machine or a process simply because it is
big, expensive, and capable of making lots of parts.
 Ignoring the required production volume and producing too much is waste. Keep this in mind -
producing things that do not sell or that we do not need is waste.
 Overproduction creates more work and expenses which are unnecessary: when stocks of finished
parts pile up, extra pallets, trays and containers are required to contain them.
 Furthermore, extra expenses grow out of transport between processes and between the
production lines and warehouse

Elimination of
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1. What is Overproduction?
 The production of goods in excess of absolute consumer requirements
 Manufacturing too much or too early or “just in case”
 Producing more than needed, producing faster than needed
Characteristics:
 Inventory Stockpiles
 Unbalanced Material Flow
 Extra Part Storage racks
 Extra Manpower
 Complex Inventory Management
Causes:
 Just in case reward system
 Lack of communication
 Automation in the wrong places
 Low uptimes

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1. Waste of Overproduction – Observations and Questions
 Are we producing the right things?
 Are we producing them Just-in-Time or too soon?
 How does daily demand compare to daily output?
 What are the dates on the material - how long does it sit in each location?
 How does each process or each station know what to process and how much?
 Is there space for material even though there may not be extra material in the
location?
 How do the operators know if they are on schedule or not?
 Is there an hourly production board?
 Is the equipment running at the stated optimal cycle time – Takt Time?
 Does anyone know what the correct cycle time is?

Elimination of
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2. Waste of Unnecessary Transportation
 The waste of transportation refers to any additional movement of product, beyond
the necessary minimum.
 It includes temporary unloading and reloading, load transfers, removal of quantities
that are too small, non-direct routing and costs of expediting.
 Transportation that does not add any value to the product from the Customer
point of view.
 Extra costs of unnecessary transportation or storage equipment, maintenance of
that equipment and the unnecessary labor add up to the final costs of a
manufacturing product.

Elimination of
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2. Waste of Unnecessary Transportation
 The waste of unnecessary transportation refers to waste encountered by
unnecessary movement of parts and information.
 Material movement is an important element in any operation, because it involves
not just delivery of parts and material, but also the supply of information. Material
and information should be moved only to the extent required to meet “Just-In-
Time” operation. Any transportation that is not required for JIT operation is a form
of waste.
 Transportation is not something that directly contributes any added value to the
products; however it is a necessary part of the operation. Both the transport of
parts and information are important and they cannot be avoided. However, they
must be minimized.
 Waste of unnecessary transportation is also a movement of material that does not
support single piece flow. For this reason, it is vital to avoid movement of material
unless it is supplying items when they are needed, where they are needed and in
the quantity they are needed - Just-In-Time.

Elimination of
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2. What is Unnecessary Transportation?
Characteristics:
 Extra carts, fork lifts, dollies
 Multiple Storage Locations
 Extra Material Racks
 Complex Inventory Management
 Extra Facility Space
 Incorrect Inventory Counts
 Damaged Material
Causes:
 Large Lot Processing
 Unleveled Schedules
 Lack of 5 S’s
 Lack of Visual Controls
 Improper Facility Layout
 Large Buffers and In Process Kanbans

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2. Waste of Unnecessary Transportation – Observations and Questions
 Does material flow smoothly from one end of the factory to the other?
 How is material handling performed, are there dedicated routes with dedicated material
handling people?
 Are there partial boxes and pallets returned back to the warehouse?
 How heavy is the material being moved, can the movement be done with a less expensive
(lower capacity) lifts or material handling device?
 How do material people know when to pick up and deliver, how do they stay on schedule?
 How do material handling people know where to store material and how much?
 How much time do material handlers spend removing packaging (e.g. boxes, tape)
 Are there a lot of marks on the walls from carts, is there any evidence of damage to walls
from material handling equipment? Any evidence of damage to the material handling
equipment?

Elimination of
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3. Waste of Unnecessary Inventory
 Inventories are measured in terms of time - from the moment the material is
received to the moment that it is shipped out as a product.
 Manufacturing costs begin to accumulate whenever parts in process stop and wait
at different stages of manufacturing.
 Any kind of inventory results in waste, whether that includes raw materials,
components, sub-assemblies, work-in-process inventory, packaging materials or
information data.

Elimination of
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Introduction
3. Waste of Unnecessary Inventory
 The waste of unnecessary inventory refers to holding excessive stock.
 The result of holding a greater amount of finished goods or work-in-process
inventory than necessary between processes, or from purchasing an excessive
quantity of materials is waste.
 When there is an excess of parts between work processes, or too many parts are
delivered by outside suppliers, the situation is called waste of inventory.
 Inventory is often a security measure taken in case an emergency situation arises.
At the same time, however, inventory increases waste.
 The greater the inventory, the greater the waste will be. It tends to hide the real
causes behind the emergency or breakdown.
 Serious or chronic problems go unnoticed. As a result, real causes are overlooked;
improvements are not made and the recurrence of problems will not be prevented.

Elimination of
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3. What is Unnecessary Inventory?
Waste that consists of excess inventory over and above that which is necessary.
 It increases costs and lead times
 Reduces quality and flexibility
Characteristics:
 Extra Space on Receiving Docks
 Material Between Processes
 Stagnated Material Flow
 LIFO instead of FIFO
 Extensive Rework When Problems Surface
 Long Lead Time for Engineering Changes
Causes:
 Incapable Processes
 Uncontrolled Bottleneck Processes
 Incapable Suppliers
 Long Change Over Times

Elimination of
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3. Waste of Unnecessary Inventory – Observations and Questions
 What size batches are supplies brought in, how many days/weeks/months of
inventory is this?
 Is there any evidence of obsolete materials, where are they stored?
 How much equipment and space is dedicated to material handling and storage?
 Do the material requisitions match up with the amount of material really on hand?
 Is there a lot of “hidden” material in the form of unorganized storage, is the
material stacked higher than eye levels?
 What is the date on the material is it more than a couple of days old, when will it be
used?
 What is the waste associated with extra inventory in terms of space, equipment,
manpower, safety, computer equipment, energy, and obsolescence?
 How often is material replenished at the process?

Elimination of
Waste
Introduction
4. Waste of Waiting
 At any time when a machine is idle (when it is needed) or an operation is not
producing, we experience a waste of valuable production time.
 Delays caused by excessive start-up time, long on-line set-up times, breakdowns,
unplanned repairs and maintenance.
 Waiting for a delivery of a missing part or a component, collecting tools, collecting
materials, waiting for an operation to finish before proceeding to the next step.
 Waiting for information or instructions, reading and trying to understand
instructions, searching for lost or miss-placed items.

Elimination of
Waste
Introduction
4. Waste of Waiting
 Waiting is a form of waste. This type of waste is being “idle” between operations
 An example of this waste is when an operator has to wait for a machine to
complete its automatic stage of a process. Waste of waiting can appear often on a
multi-process line that is not as efficiently organized as it could be.
 Another example of waste of waiting could be in an assembly process. When the
amount of work is small, if one cycle of the operation is completed and the main
component for the next assembly cycle have not yet been delivered to the
worksite, the operator ends up wasting time waiting for it.
 Sometimes it might be an unavoidable period of unproductive waiting, but
constant awareness of this waste can result in ideas to improve efficiency by
changing the job sequence.
 Another instance may be when an entire assembly area is halted while a Line
Leader or material handler searches for needed materials, schedules or supplies.

Elimination of
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Introduction
4. What is Unnecessary Waiting?
 Unnecessary waiting that results from customer orders, inventory, or completed
products waiting in queue for a process to begin.
 Operators waiting for work, materials, machine, instructions, orders, etc …
Characteristics:
 Unbalanced Operations (Work)
 Unplanned Equipment Downtime
Causes due to:
 Inconsistent work methods
 Long machine change over time
 Low man/machine effectiveness
Results:
 Long lead times
 Wasted floor space
 Ineffective use of time
 Ineffective production planning

Elimination of
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Introduction
4. Waste of Waiting – Observations and Questions
 Are the operators standing around and waiting for something?
 Why do operators have to “watch” or wait on equipment?
 Does the equipment stop automatically if abnormal conditions occur?
 Are there signals if the equipment stops, who can hear or see these signals
 How do operators know when they are supposed to be at their workstation?
 How are the jobs organized, who sets them, how do operators know what to do?
 Are there work instructions, how much variation in work pace is there between
operators?
 What happens during an breakdown, what happens to the operator?
 What do operators do during changeover, are they active participants?

Elimination of
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5. Waste of Unnecessary Processing
 When poor planning results in the purchase of equipment with greater capacity
than required
 Development of complicated processes and systems, additional handling of data
and information, delays caused by extensive levels of approval, lack of standards,
ineffective training methods, reworking of presentation materials, generating
conflicting directions, complicating issues rather than simplifying them all result in
unnecessary processing
 This type of waste occurs whenever manufacturing methods are poorly planned
and implemented or when these methods and functions are poorly exercised

Elimination of
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5. Waste of Unnecessary Processing
 Waste of Unnecessary Processing is an activity that adds no further customer value.
Anything which does not contribute to advancing the process, or to the accuracy of
the formed part, or exceeds specification, is a waste of processing.
 This type of waste has no connection with advancing the line or improving the
quality or the value of the product.
 There are many instances of parts being processed excessively. For example, parts
which only require rough surfaces (non critical surfaces not apparent to the
customer) may be excessively finished, machining operations that cut threading
holes deeper than required, or machining unnecessary features on a part.
 Redundant inspection or checking may also be thought of as an example of waste
in processing

Elimination of
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Introduction
5. What is Unnecessary Processing?
 Effort Which Adds No Value To a Product or Service.
 Results from steps in production processes that do not contribute value or create
too much cost
Characteristics:
 Process Bottlenecks
 Lack of Clear Customer Specifications
 Endless Refinement
 Redundant Approvals
 Extra Copies/Excessive Information
Causes:
 Engineering Changes Without Processing Changes
 Decision Making at Inappropriate Levels
 Inefficient Policies and Procedures
 Lack of Customer Input Concerning Requirements

Elimination of
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5. Waste of Unnecessary Processing – Observations and Questions
 Are there any manual processes that could be done by a machine, with reasonable
cost?
 Is there any duplicity of processes?
 Are all quality procedures and standards available and understood?
 How much of the work being done is value added to the customer?
 Is there a suggestion system, is it in use, what happens to suggestions?
 Is there any equipment designated for reworking?
 Is there any extra equipment around that is not in use, why is it there-is it
contingent?
 How much paperwork is being generated?
 Is there a good understanding of the cost of energy and programs in place to
reduce consumption?

Elimination of
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6. Correction - Waste of producing defects
 Producing defects increases an overall production costs and it is a major
contributor to all other types of waste.
 Producing defects is de-moralizing to the employees
 When you produce defects you not only waste materials and labor, but you loose
valuable production capacity and you cause unnecessary wear and tear of the
equipment.
 You generate additional costs of reworking, storing, processing and/or disposing of
defective material.

Elimination of
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Introduction
6. Waste of Correction
 If a defective item or defective workmanship is discovered, it is necessary to correct
the defect as soon as possible.
 Waste of correction arises from having to inspect, correct or repair defects. All
time, material, labor and energy involved in repairs is waste. All repairs raise costs.
 If a defective item or defective workmanship is discovered, it is necessary to correct
the root cause of the defect as soon as possible. Correcting or repairing a defect of
the materials and parts adds unnecessary costs.
 Even if a defective part can be repaired, its quality is often inevitably impaired. It
can also lead to quality problems further down the line and cause additional waste
of labor and energy which increases costs.
 Consequently, attention should be given to avoiding the waste of repair

Elimination of
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6. What is Correction – Producing Defects
 These are products or services that do not conform to the specification or
Customer’s expectation, thus causing Customer dissatisfaction.
 Research confirms that 20 to 30% of manufacturing company’s gross revenues are
spent on correcting mistake. Defects cause rework, confusion and upset a
synchronized set of processes.
 Inspecting and quarantining defective parts takes time and costs money
Causes:
 Incorrect product design
 Machines operating out of specs
 Defective materials
 Poorly trained employees

Elimination of
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6. Waste of Correction – Observations and Questions
 Is there a dedicated area for defects, how many are in this area?
 What happens to defects and rejected products?
 Are the defective products analyzed and root cause problem solving performed?
 How do operators know when material is out of specification, what is the reaction or
countermeasure?
 What kind of inspection is done on the line?
 What type of inspection is done off line-how often?
 How complicated are the processes, is there any standard work?
 Are there any boundary samples or on-line inspection equipment
 Are there examples of bad parts with explanations of why they are bad?

Elimination of
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Introduction
7. Waste of Unnecessary Motion
 Any motion or no motion (example: holding a part) of any human movement that
adds no value to the product is considered waste
 Poor plant or machinery layout contributes to the waste of motion. Unnecessary
walking, bending, reaching, switching between sides are results of a poor layout.
 Waste of motion occurs on the production line when standard procedures are
either not defined or not followed or not carried out efficiently.
 It also occurs when the standard procedure itself is inefficient.

Elimination of
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Introduction
7. Waste of Unnecessary Motion
 The waste of motion refers to actions of an operator or equipment which do not
add value during the work process.
 Any movement of people or equipment which does not contribute added value to
the products is considered to be waste of motion.
 An example of this waste is when the operator has to leave his workplace and
search for the tool or part to complete his job and finds them unavailable.
 Waste of motion also occurs when processes or equipment are not laid out
properly – operators are positioned too far from each other or from the machines.
It becomes inconvenient and a lot of time and effort is wasted in walking.

Elimination of
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7. What is Unnecessary Motion?
Characteristics:
 Looking for Tools
 Excessive Reaching or Bending
 Material Too Far Apart (Walk Time)
 Equipment for Moving Parts
 Extra “Busy” Movements While Waiting
Causes:
 Equipment, Office & Plant Layout
 Lack of 5 S’s
 Lack of Visual Controls
 Inconsistent Work Methods (Standardized Work)
 Large Batch Sizes

Elimination of
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7. Waste of Unnecessary Motion – Observations and Questions
 Is there a lot of movement that is not adding value to the product?
 Do people look busy, but are not adding value to the product?
 Are operators engaged in searching for tools, documents, or materials?
 Are there a lot of unnecessary boxes and containers around the work station
causing operator for extra motion?
 Are tools at the point of use, or are they at one central location?
 Are specialized tools at the point of use?
 Are a lot of people engaged in walking around?
 Is there a lot of pick and place, are operators tied to one machine because of this?

Elimination of
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Introduction
Identification and Elimination of Waste
 Identification and elimination of waste is the central theme of a lean manufacturing
production system
 Lean manufacturing is a dynamic and constantly improving process dependent
upon understanding and involvement by all employees
 Successful implementation requires that all employees must be trained to identify
and eliminate waste from their work
 Waste exists in all work and at all levels in the organization

Elimination of
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Introduction
Overproduction is the Worst

Elimination of
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Introduction
Overproduction / Overdeliveries
increases Inventory - Inventory hides Waste

Elimination of
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Introduction
What creates Waste?
 Poor Layout (distance/reaching)
 Long setups, changeovers
 Weak processes
 Equipment breakdowns
 Poor work methods
 Inadequate training
 Poor compliance
 Poor parts ordering system
 Defective material
 Inconsistent measures
 Ineffective production planning, scheduling
 Poor workplace organization
 Inconsistent supplier performance
 Lack of discipline
 No standards
 Poor container design
 And many, many more!

Elimination of
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Eliminating Waste
 Elimination of Waste is a way to effectively and efficiently increase production
without purchasing more equipment, increasing the work force, working harder, or
working longer, etc
 Lean Transformation does this by identifying Waste (Muda) in work and then taking
steps to eliminate it.
 Lean Transformation is based on an assumption that operating efficiency and cost
improvements can be achieved by working efficiently at a reasonable pace, without
increasing the number of workers or machines, and without increasing the working
time.

Elimination of
Waste
Introduction
Current
Status VA NVA
Traditional
Cost
Reduction
VA NVA
Lean
Focus VA NVA
Traditional Approach to Improvement

Elimination of
Waste
Introduction
Eliminating Causes of Waste
 Waste refers to various phenomena in the operations process responsible for
raising costs without adding value.
 Elimination of Waste
 First step towards efficiency improvement
 Difficult to recognize waste
 Need to make waste obvious to everyone
 Waste must appear distinctly and clearly
 Must re-examine the way we think about waste
 Understanding the causes of waste and eliminating them from the work sites is
important to the production system. There are two other contributors to waste:
 Unevenness
 Overburden

Elimination of
Waste
Introduction
3 Ms areas – Muda, Mura, Muri

Elimination of
Waste
Introduction
Unevenness
 Unevenness refers to the phenomena of process fluctuations that result when
production schedules or deliveries are not constant or reliable.
 The greater the unevenness the more waste there is
 Typically what happens is that out of our fear of shutting down the customer we
keep enough parts, material, and people around to always be prepared for the
maximum demand that can be placed upon us.
 Unevenness can be observed, not only in the overall production volume, but also at
the worksite in the amount of work done by the worker, the flow of parts in and
out and the use of machines and equipment.
 When the amount of work performed by each operator is different or uneven it is
difficult to truly grasp where the waste, problems, or inefficiencies exist in a
system.

Elimination of
Waste
Introduction
Overburden
 Overburden happens when equipment or a worker is pushed beyond the natural
limit of their capabilities.
 The capacities of either people or equipment can be overburdened.
Overburdening people results in safety and quality problems.
 While overburdening equipment is a direct cause of breakdowns and defects.
Continuous overburdening of people and machines will increase the costs instead
of minimizing problems
 Obviously people have their limits, and there are differences among them which
must be considered in production. If the standards are set for the specs of a skilled
and experienced operator, but the actual work is being done by someone who is
not yet fully trained, the work will not be completed within the standard time; the
new operator will likely fall behind
 We must be on the lookout for opportunities to have people rotate more in areas
with strenuous processes, or make difficult jobs easier through continuous
improvement

Elimination of
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Introduction
Awareness of Waste
 The intent of the Lean Transformation process is to raise productivity and reduce
costs by eliminating Waste and minimizing Non-Value Added Work.
 Waste refers to various phenomena in the production process responsible for
raising costs without adding value.
 In fact, by definition almost anything that raises costs without adding value is
defined as Waste.
 Lean Transformation is based on an assumption that operating efficiency and cost
improvements can be achieved by:
 Working efficiently at a reasonable pace
 without increasing the number of workers or machines
 and without increasing the working time
 If we carefully analyze each work process, the equipment and materials being used,
we soon can identify waste and find ways to eliminate it.

Elimination of
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Introduction
Why do we need to eliminate Waste?
 To reduce Lead Time
 To reduce operating costs
 To improve business performance visibility
 To improve “speed time to market”
 To exceed Customer expectations

Elimination of
Waste
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Understanding Waste
 Waste cannot be ignored. If we are going to improve our efficiency and lower the
operating costs, we must look at the job cycle closely and look for ways to eliminate
waste to increase our production efficiency.
 Waste does affect people
 Causes physical fatigue
 Causes emotional fatigue
 Increases frustrations
 Increases stress
 Causes you to blame others
 Steals your time
 Non Utilized People - Wasted People Potential
 We know what needs to be done. We tell the management, but they do not listen to us.
 We have been through this sort of program before and nothing ever changes…
 The biggest issue is making us see and believe that management is going to make it happen.
 They do not speak to us, the new breed of managers do not

Elimination of
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Introduction
Methods to increase productivity
 Purchase more Equipment
 Increasing the amount of equipment is one method to increase productivity
 Increasing equipment means that it is necessary to find people to operate it. Increasing
equipment is by no means cost efficient.
 Working Longer
 Working overtime, working weekends or holidays
 This method of increasing production may be effective if done infrequently for relatively short
periods of time
 It is a poor solution in the long run
 Increase the number of employees
 It is without doubt a way to increase production
 It is not a good way of generating profit

Elimination of
Waste
Introduction
Changing the World. One Transformation at a time
This presentation is an intellectual property of W3 Group Canada Inc.
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Marek Piatkowski
W3 Group Canada Inc.
iPhone: 416-235-2631
Cell: 248-207-0416
Marek.Piatkowski@rogers.com
http://twi-network.com

Elimination of
Waste
Introduction
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Elimination of 7 types of Waste (MUDA)

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