Eight Wastes of Lean (by Industry or Function) by Operational Excellence Consulting

© Operational Excellence Consulting. All rights reserved.
This presentation is a collection of specific examples of the eight
wastes of Lean, organized according to industry or function. They
include: Manufacturing, Product Development, Healthcare, Financial
Services, IT Services, Government (Public Sector) and Office.
Eight Wastes of Lean
by Industry or Function
Examples of Eight Wastes of Lean Organized by
Industry or Function

© Operational Excellence Consulting. All rights reserved. 2
Contents
1. Lean Wastes in Manufacturing
2. Lean Wastes in Product Development
3. Lean Wastes in Healthcare
4. Lean Wastes in Financial Services
5. Lean Wastes in IT Services
6. Lean Wastes in Government (Public Services)
7. Lean Wastes in Office
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation, please
visit: http://www.oeconsulting.com.sg

Lean Wastes in Manufacturing
1

Over-production
Producing sooner, faster or in
greater quantities than
customer demand
Inventory
Raw material, WIP or finished
goods which is not having
value added to it
Transportation
Unnecessary movement of
people or parts between
processes
Defects
Work not done right the first
time such as scrap and
rework
Over-processing
Processing beyond the
standard required by the
customer
Motion
Unnecessary movement of
people, parts or machines
within a process
Intellect
Not using employees full
intellectual contribution
Waiting
People or parts that wait
for a work cycle to be
completed
Waste

• Inventory stockpiling or building ahead of
schedule
• Purchasing materials before they are
needed
• Producing more to “make up” for
production losses such as defects
• Delivering more than what was ordered
• Unbalanced material flow
• Exceeding scope of agreement
Over-Production
Waste of Over-Production

• Waiting for materials or equipment to be
delivered
• Person waiting for machine; machine
waiting for person; person waiting for
person
• Waiting due to quality issues
• Waiting for breakdown to be resolved
• Waiting for instructions, approvals,
information or decisions
• Seeking clarifications (due to unclear
communications)
• Stockouts
Waiting
Waste of Waiting

• Ordering parts or products from distant
suppliers when closer options are
available
• Sending unsold products from the store
back to the warehouse
• Moving containers of materials
• Carrying WIP over long distances
• Moving in and out of storage areas or in
between processes
• Multiple storage locations
• Sub-optimal dispatch or routing
Transportation
Waste of Transportation

• Providing higher quality than is necessary
• Repeating the same or similar steps
(redundancy)
• Band-aid reactions to past quality problems
• Removing coating or paint overspray from
an unwanted area
• Unnecessary part/system replacement
• Excessive documentation
• Redundant approvals (checkers checking
on checkers)
Over-Processing
Waste of Over-Processing

Lean Wastes in Healthcare
2

Over-production
Producing more, sooner, or
faster than required
Inventory
Storing excess drugs/supplies,
including unnecessary
equipment and resources
Transportation
Unnecessary movement
of patients, specimens
and supplies
Defects
Errors or corrections due
to work not being done
correctly
Over-processing
Putting more work into
a process than required
Motion
Extra physical/mental
motion that does not add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Waiting for another
person, process or
equipment
Waste

• Expired test reagents
• Expired drugs
• Excess drugs and supplies
• Specimens waiting to be analyzed
• Emails waiting to be read
• Unused records in the database
• Low use to equipment ratios (e.g.
photocopiers, printers, etc.)
Inventory
Waste of Inventory

• Patients waiting due to schedule
exceeding capacity
• Emergency room patients waiting for test
results
• Specimens waiting in batches for testing
in the lab
• Waiting for patients, beds, equipment,
operating rooms, information, etc.
communications)
• Equipment/System downtime
• Out-of-stock drugs and supplies
Waiting
Waste of Waiting

Defects • Misdiagnoses that lead to unnecessary
tests or treatment
• Mislabeled patient specimens
• Wrong medication delivered to patient
• Performing tests on an instrument that is
experiencing a QC violation
• Data entry errors, mistakes or rework
• Missing information, missed specifications,
or lost records
• Lost or damaged drugs and supplies
Waste of Defects

Lean Wastes in Financial
Services
3

Lean Wastes in Financial Services
• Creating reports that no one needs or
making extra copies
• Duplicating computations of similar data
• Endless consolidation of existing reports
• Excess email messages
• Performing unrequested work
• Purchasing items before they are needed
• Providing more information than the
customer needs
Over-Production

• Waiting to be served
• Waiting for internet banking system to be
restored
• Waiting for the delivery of a financial
product (e.g. new insurance policy) or
service
• Waiting for information from other
departments
• Seeking clarifications on product
promotions
Waiting
Waste of Waiting

Intellect • Narrowly defined jobs and expectations
• Not engaging or listening to employees in
finding solutions
• Mismatched work functions with skill sets
• Lack of information or best practice
sharing across the organization
• Lack of teamwork
• Poor management
Waste of Intellect

Lean Wastes in IT Services
4

• Each account having a customized
solution
• Backlog such as tickets and feature
requests waiting to be worked on
• Excessive requirements churn
• Excess servers and other IT equipment
• Obsolete databases, files and folders
• Excess materials and information
Inventory
Waste of Inventory

• Handover of tasks from developer to
tester
• Insufficient use of remote diagnosis
• Sub-optimal dispatch and routing
• Report routing
• Taking files to another person, or going to
get signatures
• Poor office layouts
• Double or triple handling
• Retrieving or storing files
Transportation

Defects • Inadequate testing before production
• Architecture group designs system
specifications without checking for
implementability
• Lack of standards for naming, coding GUI
interfaces, etc.
• Data entry errors, mistakes or rework
• Missing information, missed specifications,
or lost records
• Incorrect schedules and information
Waste of Defects

Lean Wastes in Government
(Public Services)
5

Lean Wastes in Government (Public Services)
• Waiting to be served
• Waiting for information from the applicant
• Waiting for information from other
departments
• Waiting for colleagues who are absent
for other reasons
communications)
Waiting
Waste of Waiting

• Traveling from counter to counter
• Data transport: The route an application
makes past all sorts of officials down the
chain
• Report routing
• Retrieving or storing documents
• Taking files to another person, or going to
get signatures
• Sub-optimal dispatch
• Double or triple handling
Transportation

• Reaching, bending or unnecessary motion
due to poor ergonomics and office layout
• Walking to meeting room
• Trips to printers and copiers
• Searching for information in internet,
intranet or shared folders
• Searching for tools, files and supplies
• Handling paperwork
Motion
Waste of Motion

Lean Wastes in Office
6

• Shelves of unused office supplies
• Stacks of promotional literature or pre-
printed forms
• Inventory of never-been-used office
equipment
• Excess facilities, materials and information
• Excess storage space
• Obsolete databases, files and folders
• Emails waiting to be read
• Files waiting to be worked on
Inventory
Waste of Inventory

• Reaching, bending or unnecessary motion
due to poor ergonomics and office layout
• Walking to meeting room
• Trips to printers and copiers
• Searching for information in internet,
intranet or shared folders
• Searching for tools, files and supplies
• Handling paperwork
Motion
Waste of Motion

Intellect • Employees do not have the opportunity to
learn new skills or utilize hidden ones
• Employees are not involved in process
improvement or problem solving
• Time is spent correcting errors or
responding to emergencies
• Workers are not given the chance to
advance within the company
• Narrowly defined jobs and expectations
• Mismatched work functions with skill sets
Waste of Intellect

Lean Wastes in Product
Development
7

Lean Wastes in Product Development
• Working with incomplete requirements
• Not using standard parts and components
• Extra software features
• Too many prototypes
• Unnecessary documentation
• Cost overruns due to excessive project
time charging
• Overlap of strategic and non-strategic
projects competing for limited resources
Over-Production

Lean Wastes in Product Development
• Product designs or processes that are too
complex
• Unnecessary steps in design process
• Over-designed or over-engineered product
• Using software that has a function beyond
what is needed
• Too many approvals required
• Excessive number of iterations
• Excessive “paperwork”
Over-Processing
Waste of Over-Processing

About
Operational Excellence Consulting

About Operational Excellence
Consulting
• Operational Excellence Consulting is a management
training and consulting firm that assists organizations in
improving business performance and effectiveness.
• The firm’s mission is to create business value for
organizations through innovative operational excellence
management training and consulting solutions.
• OEC takes a unique “beyond the tools” approach to enable
clients develop internal capabilities and cultural
transformation to achieve sustainable world-class excellence
and competitive advantage. For more information, please visit
www.oeconsulting.com.sg

To download this presentation,
please visit us at:
www.oeconsulting.com.sg
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Eight Wastes of Lean (by Industry or Function) by Operational Excellence Consulting

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