Dealing with the 8 DEADLY WASTES
that impact your profit
Webinar outcomesThrough this webinar you will:
Understand the learning path for a quality management professional
Learn to identify wastes or non-value-added activities that impact your profit
Know the nature of waste in your business processes
Reduce the 8 main type of wastes in order to be more efficient in serving the end customer
Understand that eliminating waste is the foundation of lean thinking
Speaker: Luciana Paulise1. Business consultant and founder of Biztorming
Training & Consulting
2. MBA from CEMA University, a top-ranked institution at Buenos Aires, Argentina
3. Quality Engineer certified by the American Society of Quality (ASQ)
4. Participated as an examiner for the National Quality Award in Argentina and the Team Excellence Award
5. Influential Voice for the ASQ (US). Speaker and Author
6. Columnist for Infobae (Argentina), Destino Negocio (Spain) and Somos Pymes (Argentina)
7. In 2014 received a grant from the Deming Institute to apply Deming quality management system on small business in development countries
8. Located in Buenos Aires Argentina
Business consultant and founder of Biztorming Training & Consulting
Webinar Agenda• Introduction to Lean• Introduction to Waste• The 8 Wastes• Next Steps• Wrap up Session
Introduction to Lean
What is Lean?Lean methodologies look forward to reducing eight wastes or non-value-added activities in order to be more efficient in serving the end customer.
Elimination or reduction of them can result in savings for your business by more than 50%.
Steps of Lean ThinkingIdentify Value
from the customer’s perspective
Map the Value Stream and get
rid of waste
Make the value creating steps
Flow continuously
Let customers Pull the product
Seek Perfection
- what are the true value adding activities?- make waste visible (5S)- use standard operating procedures (SOPs)- make performance visible (Visual Factory)
- eliminate other wastes (8 Wastes) - minimize non-value adding
steps (COPQ)
- use continuous improvement (Kaizen) to get value to flow
faster and to completely eliminate Muda
- no one produces a product until the customer asks for it
- throw out forecasting
- eliminate batch-and-queue- everything works or nothing
works- ignore traditional boundaries
Lean tools
Seek Perfection
Identify the value stream and Eliminate Waste
Standardize and visualize customer value
Create Flow
Allow customers to Pull
Introduction to Waste
Waste Definition Any activity that consumes resources but creates no value.
Waste in our work place (and elsewhere) becomes so familiar that we fail to see it for what it is
“We look at it, but we do not see it.”Lao-Tzu, sixth century BC
Inspect
Rework
Scrap
Process
Hidden Factory
How much inspection, rework and
scrap?
Product to
customerHigh yield
High Yield Does Not Always Equal Low COPQ
Visible Costs are only the Tip of the Iceberg!
ScrapRework and sorting
Rejects Warranty claimsMaintenance and service
Additional labor hoursMaterials Obsolescence
Quality engineering and administration
Inspection/test (materials, equipment, labor)
Expediting
Cost to customer
Excess inventory
Longer cycle timesQuality auditsSupplier control
Lost customer loyaltyImprovement program costs
Process control
Opportunity cost if salesgreater than plant capacity
Cost to supply chain
Accounting does not
capture all costs!
Required Waste, 30%
Value Added
Work, 20%
Pure Waste, 50%
Typical Waste DistributionBased on: The Quality Secret, Conway
The 8 Wastes
Eight Wastes
Original 7 wastes from Toyota Production System
New!!
D •Defects
O •Overproduc tion
W •Waiting
N •Non-v alue added proces sing
T •Tr ansportation
I •Inventory
M •Motion Waste
E •Employ ees unutil ized sk ills
Quality
Defects
Making defective products that have to be reworked, repaired or scrapped
PeopleOver-processing
Performing activities that add no value to the product or service from the customer’s perspective
PeopleWaiting
Idle time before next processing step
People
Motion Waste
Movement of employees and equipment that does not add value to product or service
People
Employee unutilized skills
Not using people’s abilities, skills, experience to fullest extent
Materials
Transportation
Movement of material or data from one place to another
Materials
Inventory
MaterialsOverproduction
Producing materials or completing services that aren’t needed now
The 8 wastes + Tools
Materials
Over-producti
on
Just in time
Work Balancing
People
Motion
Workplace management
SOP’s
Quality
DefectsErrors prevention
Visual management
Next steps
Exercise: Identifying WasteIndividual exerciseTime Required: 15 minutes
Instructions:
1. Using your process map, identify examples of each of the 8 Wastes.
2. Categorize the three top wastes that exist.
3. What prevents you/your business unit from addressing these wastes?
Identify 1 example of each
of the waste types
Possible Cause Proposed ActionHow will we
know we were successful?
Overproduction
Inventory
Waiting
Defects
Transportation
Motion
Over-Processing
Employee unutilized skills
Exercise: Identifying Waste
Any Questions?
Luciana PauliseCEO Biztorming
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