[Note: This is a partial preview. To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] To start a Lean initiative in your organization, it is absolutely essential that all employees are able to recognize the eight types of wastes (or "muda" in Japanese) that are all around them. The ability to identify wastes is the first step towards their elimination. You can use this visual presentation to run a half-day workshop or awareness session to educate employees on the concept of value and wastes, and motivate them to adopt a positive attitude toward making improvement to their work areas and processes. Included in this presentation is a collection of specific examples of the eight waste of Lean organized by industry. They include: Manufacturing, Product Development, Healthcare, Financial Services, IT Services, Government (Public Sector) and Office (Administrative Functions). This presentation can easily be integrated with your own Lean training materials focusing on waste analysis, elimination and prevention techniques such as 5S principles, Kaizen, Value Stream Mapping, PDCA Problem Solving, etc. to create a comprehensive Lean training program. LEARNING OBJECTIVES 1. Understand the key concept of waste 2. Learn to recognize the eight types of waste in your work areas and processes 3. Adopt a positive attitude to waste elimination CONTENTS 1. What is Waste? Introduction to the 8 Deadly Wastes 5 Ways to Increase Production Processing Methods Affect Cost Work versus Waste What is Value? What is Value-added? What is Waste? Definition of Waste How Does Waste Take Root? Waste Take Root When We Accept Stopgap Improvement Benefits of Identifying & Eliminating Waste The 8 Types of Waste 2. The 8 Deadly Waste (organized by industries) Over-production Inventory Waiting Transportation Motion Over-processing Defects Non-utilized Talent 3. The Attitude for Eliminating Waste Adopting the Necessary Attitude 10 Principles for Improvement (Masaaki Imai) To download this complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations

1. © Operational Excellence Consulting
THE 8 DEADLY WASTE
© Operational Excellence Consulting
INVENTORY MOTIONTRANSPORTATION WAITING
OVER-PRODUCTION DEFECTSOVER-PROCESSING NON-UTILIZED TALENT

2. 2© Operational Excellence Consulting 2
Learning Objectives
Understand the
key concept of
waste
Copyrights of all the images used in this presentation are held by their respective owners.
Learn to recognize
the eight types of
waste in your work
areas and
processes
Adopt a positive
attitude to waste
elimination
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation, please
visit: http://www.oeconsulting.com.sg

3. 3© Operational Excellence Consulting 3
1
2
3
The 8 Deadly Waste (various industries)
What is Waste?
The Attitude for Eliminating Waste
Outline

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Work versus Waste
Value Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Focus here for
improvement

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What is Value-Added?
§ Value-Added
• Is any activity that increases
the market, form, or function
of the product/service
• These are things the
customer is willing to pay for
Value Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste

6. 6© Operational Excellence Consulting 6
What is Waste?
§ Non-Value-Added = Waste
• Any activity that adds cost or
time but does not add value
• These activities should be
eliminated, combined,
reduced or simplified
Value Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste

7. © Operational Excellence Consulting
“Waste is anything other
than the minimum amount
of equipment, materials,
parts, space, and worker’s
time which are absolutely
essential to add value to the
product.”
Shoichiro Toyoda
President, Toyota
Definition of Waste

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Waste Takes Root When We Accept Stopgap Improvement
A Problem
Occurs
Evading the problem
“For the time being, let’s…”
Institutionalization
“Let’s find ways
to work around it.”
Habituation
“We’ve always done it
like this.”
Substantiation
“No one has any objection
to the way we do this now.”
Stopgap
Improvement
Ask “why” until root cause is
understood
Real
Improvement
Apply best solution
Problem is solved

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The 8 Types of Waste
INVENTORY MOTIONTRANSPORTATION WAITING
OVER-PRODUCTION DEFECTSOVER-PROCESSING NON-UTILIZED TALENT

10. © Operational Excellence Consulting
“There is nothing
so useless as doing
efficiently that
which should not
be done at all.”
Peter Drucker

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Cost Reduction Principle
Cost Plus Principle
COST 1
SALES
PRICE
1
PROFIT
1
Present
COST 2
PROFIT
2
Future
SALES
PRICE
2
Cost Reduction Principle
COST 1
SALES
PRICE
1
PROFIT
1
Present
COST 2
PROFIT
2
Future
SALES
PRICE
2
Higher profit is
achieved by
increasing sales price
Higher profit is
achieved by reducing
cost (waste) while
maintaining sales price

12. 12© Operational Excellence Consulting 12
Lean Waste in Manufacturing
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

13. 13© Operational Excellence Consulting 13
Lean Waste in Manufacturing
• 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

14. 14© Operational Excellence Consulting 14
Lean Waste in Product Development
• Time invested in making drawings and
specifications, updating them and
managing them
• Collections of unprocessed information
and data
• Projects that are not aligned with
business directions or objectives
• Work-in-process that exceeds capacity
• Partially done work
Inventory
Waste of Inventory

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Lean Waste in Healthcare
• 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.
• Seeking clarifications (due to unclear
communications)
• Equipment/System downtime
• Out-of-stock drugs and supplies
Waiting
Waste of Waiting

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Lean Waste in Financial Services
• Unnecessary movement of documents or
information via the network
• Activities that involve moving from one
person to another, within departments or
between departments that add time to the
overall process
• Tasks that involve collection and delivery,
physically or virtually
Transportation
Waste of Transportation

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Lean Waste in IT Services
• Software that requires 10 clicks to get to
the screen you want
• Printers and other equipment that are not
conveniently located
• Getting and updating tasks on the Scrum
board
• Lacking appropriate time saving
tools/automation
• Project team members separated by
walls, floors or buildings
• Searching for information in internet,
intranet or shared folders
Motion
Waste of Motion

18. 18© Operational Excellence Consulting 18
Lean Waste in Government (Public Services)
• Complex purchasing processes with
multiple approval levels
• Sending emails and copying the entire
organization
• Reclaiming $1.32 from a member of the
public
• Repeated manual entry of data
• Multiple formats for the same information
• Check and double check
• Excessive reporting
Over-Processing
Waste of Over-Processing

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Lean Waste in Office
Defects • Data entry errors, mistakes or rework
• Missing information, missed
specifications, or lost records
• Errors in documents
• Managing subcontractors to correct
mistakes
• Incorrect schedules and information
• Inadequate trials before full
implementation
• Lost or damaged goods/supplies
Waste of Defects

20. 20© Operational Excellence Consulting 20
Lean Waste in Office
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

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Activity 1: Identify Waste
Instructions:
1. In your respective groups, identify the specific types of
waste that you have observed or experienced in your
industry or office.
2. List your findings on the flip chart.
3. Present your findings to the class.
15 minutes

22. © Operational Excellence Consulting
“The most
dangerous kind of
waste is the waste
we don't
recognize.”
Shigeo Shingo

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The Attitude for Eliminating Waste
§ The purpose of this workshop is to learn to recognize
waste that are all around us, not to solve the problems
immediately – this will be done separately
§ There are many Lean techniques and tools that can be
applied to discover, eliminate and prevent waste.
Examples include Value Stream Mapping, 5S,
Standardization, etc.
§ However, for now, it is important that for waste elimination
to be effective, every employee should adopt a positive
attitude towards improving the current way we work

24. 24© Operational Excellence Consulting 24
Discard conventional
rigid thinking about
about work.
1
Source: Masaaki Imai

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Think of how to do it,
not why it cannot be
done.
2
Source: Masaaki Imai

26. 26© Operational Excellence Consulting 26
Do not make excuses
– Start by questioning
current practices.
3
Source: Masaaki Imai

27. 27© Operational Excellence Consulting 27
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

28. © Operational Excellence Consulting. All rights reserved. 28
Operational Excellence Consulting is a management training and consulting
firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg