4. Why Eliminate Waste ?
Don’t throw money away $$
Keep customers– cheaper to retain than to acquire
To avoid high operating and production costs that
are ultimately passed on to the customer
To maximise opportunity to have a significant
financial impact on the business
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5. Service Waste - NVA
1. Information
2. Energy and Water
3. Defecting customers
4. Untapped Human Potential
5. Materials
96% Non Value Add
6. Customer Time
7. Service and Office
8. Inappropriate Systems
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6. Types of Service Waste
1. Information 5. Materials
2. Energy and Water 6. Customer Time
3. Defecting customers 7. Service and Office
4. Untapped Human 8. Inappropriate
Potential Systems
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7. # 1 - Information
Should not take very much time
Should not require double checking
Figuring out what to do and when to do it
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8. # 2 - Energy and Water
Fixing leaks
Shutting down the machine
Turning off a dripping faucet
Shutting off unnecessary lighting
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9. # 3 - Defecting Customers
Loss of existing customers resulting from:
High costs
Poor quality
Poor service
Late deliveries
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10. # 4 - Untapped Human Potential
Create / develop thinking people
The power of using the thoughts of all
employees; not just managers
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11. # 5 - Materials
Recovery, remanufacturing, and recycling
Conserving materials during design,
manufacture, customer usage, and more
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12. # 6 - Customer Time
Forced to wait in value-adding services
Customer inconvenience: waiting for a
delivery or traveling for a service not
offered locally
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13. # 7 - Service and Office
Wasted food Excess emails
Copies in triplicate Excess
or more !! photocopying
Unnecessary Overly fancy
meetings presentations
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14. # 8 - Inappropriate Systems
Record keeping
Remove waste before automating
anything
Include manual as well as computerised
systems
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15. If the above waste are ignored….
Higher operating costs
Higher production costs
These costs will eventually be passed on
to the customers….and
You loose them to your competition
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16. How can this waste be removed ?
Start with TOC, SDCA and then to PDCA
Solved through “Lean Thinking”
“Lean Thinking” = elimination of all forms
of waste from an operation
Utilise = Lean, Kaizen, JIT, Jidoka and 5S
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17. Where does one start ?
Theory of Constraints (TOC)
There is a single point in any process operating at
100% capacity
Making improvements anywhere else will not improve
overall flow
Thus, start at the bottleneck
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18. “Computers may save time but they sure
waste a lot of paper. About 98 percent of
everything printed out by a computer is
garbage that no one ever reads.”
- Andy Rooney
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