Waste

Unnecessary waste Necessary waste

Value

Anything that does not add value

Presented by: Armando Cepeda Tamez

Monterrey, Mexico September 2010

Waste
Wait for parts Wait for handling Bend to pick up from floor Defect or Rework parts Carrying parts Counting stock Wait for paperwork
ADD VALUE

Assembling parts Packaging Welding Paint and plate Machining

WASTE WASTE

WORK

INCIDENTAL ACTIVITIES

Moving pallets. Check parts. Record production. Walk to next machine. Stock Audits. Making goods that are not required.

Waste is any activity that does not add value

Waste
Activities that absorb resources but add no value. Defined as: Muda = Mura= Muri= Waste Irregularity Difficulty Inconsistent methods Varying lot size Equipment out of place Parts hard to fit Poor lighting Heavy lifting

The Ultimate Goal Eliminate Waste

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Waste

Waste

Lead Time
Lean tools help us identify and eliminate waste from our processes, leading to: Reduced costs Reduced lead time Faster response Improved quality Reduced inventory Reduced floor space Better predictability

New Lead Time

7 Wastes
The Toyota 7 Wastes Transport 1 Over production

TIMWOOD the waste man

Part moves long distance Stock cost, handling, loss, hide problems 180 deg body turns, pick up from floor For; Materials, Handlers, Tools, etc. Work you cannot sell, extends lead-time Tighten & torque check, Strip and rebuild, NRFT

Inventory Motion

2 Waiting 3 Transport 4 Over process

Waiting

Over production 5 Inventory

6 Rework Over processing 7 Motion Defects

Over Production
Over production, making parts the customer will not pay for causes other wastes (waiting, motion, transportation, inventory, defects)

Balance processes to TAKT where capacity exceeds customer requirement, use MIN & MAX levels.

Over Production
Overproduction = Extra inventory, Extra handling, Extra space to store it, Extra quality problems, Extra lead-time, Extra bins, Extra paperwork and Extra communication

Causes: Inventory is viewed as security (just in case) Process not capable or not reliable No standard practices, lack of adherence Poorly performing suppliers Long setup times Lack of workplace organisation Seasonal peaks and troughs in demand Poor forecasting and production planning/scheduling Producing to speculative demand (forecast) Departmental layouts Lack of training

Waiting
Waiting is usually the easy waste to see

Dont have operators waiting for machines, fit auto stops and andon to free operators for other work

Waiting
Idle time any idle time such as watching equipment, waiting for inspection, waiting for raw material, waiting for maintenance, waiting for paper work
Causes: - When two dependent activities are not fully synchronized - Insufficient storage containers - Poor layout - Poor work balance - Unreliable equipment - Resources stretched

Transport
All forms of transportation are waste !

Connect processes and eliminate material between. Deliver direct to point of use, no decant or double handling. U-shape cells close gap between ends.

Transport
Material movement and handling adds cost not value. Transportation, must be eliminated or minimised.
Causes: - Poor layout / distance between operations - Layout in process specific work areas - Inflexible workforce - Batch processing - Large lots / long changeovers - Remote storage areas

Over processing

Are we doing too much ? Task frequency ? Is touch-up or polish really necessary ? Are protectors really needed ? Do we need a stud & nut would a bolt be adequate? Is all that packaging necessary?

Over processing
Effort and enhancements which are invisible to the customer. Work which is made redundant by subsequent process.
Causes: - Thats the way weve always done it - Improper fixtures, tools, jigs - No standard work - Temporary fix that becomes permanent - Mistakes in process - Excessive checking - Lack of training - Poor layout

Inventory
Turn product into CASH, reduce inventory, minimize buffers Rent Rates Security Audit Handling Degradation Out of date Loss

Inventory
Excessive raw materials, WIP, or finished goods are waste. Inventory exist as : Buffer between processes of dissimilar cycle times or availability. Satisfy customer demand inside the lead-time to manufacture. Security against process/supply failures.

Causes: Acceptance of overproduction Relying on MRP systems/forecasting Inventory is comforting Long changeovers Buffer against downtime instead of addressing root cause

The Irony of Inventory

Organisations that suffer from material & part shortages and have a poor delivery performance can usually be found to have excessive inventory levels. Why ?

Inventory
HELLO

RECENT FLOATATION

REMEMBER INVENTORY HIDES PROBLEMS

HIGH STOCK LEVEL

MACHINE RELIABILITY

DEFECTS

MATERIAL ATTENDANCE AVAILABILITY

SET UP AVAILABILITY TIME

Motion
Take the work to the operator not the operator to the work

Eliminate walking, use chutes and slides. Eliminate stretching, everything within reach, one by one. Eliminate bending, everything at working height. Eliminate fiddling, orientate parts for use.

Motion
Any movement of people, or machines, which does not add value to the product or service is waste and tiring. Typically, bending to pick up from floor level, turning to pick up from behind.
Causes: - Poor work arrangement - Poor work layout - Poor facilities - Lost items (searching) - Poor standards - Poor tool design

Defects
Right first time means prevent defects

Prevent defects with pokayoke and source inspection. Detect problems early with self inspection, successive inspection, informative inspection, pokayoke. Spend as much time eliminating root cause as on repairs

Defects
Scrap / Rework from a poorly running process, set-up scrap, repair of a product or service to meet customer requirements. Warranty, Customer returns
Cause: - Poor methods - Damaged goods - Lost goods - Poor/no training - Misunderstandings - Storage concerns

Wastes

Lead-time defined
Lead-time Order Order Lead-time Order Start to make Manufacturing Lead-time Start to make Packed Delivery Lead-time Packed Delivered Delivered

Lead-time waste
Order 95-99% Waste Delivered 1-5% Added Value

Traditionally focus is on reducing processing (value added) time

Lean focus on the Waste

Order

Delivered

Lead-time waste
Manufacturing Lead-time Start to make Packed

Manufacturing lead-time Processing Actual production time

Transportation and Incidental work

Stagnation
Material Information

The P:D Ratio

P=
STACKED LEADTIME = Order + Manufacturing + Delivery 6 wks

D=

CUSTOMER DEMAND (Often best in market)

P:D Ratio = 6/2 = 3

2 wks P:D ratio of <1 means the manufacturer can make to order. This results in very low inventories, a characteristic of lean organisations P:D ratio of >1 means the manufacturer has to build to forecast, and supply from stock. This results in high inventories, a characteristic of traditional organisations. Use MIFA & Process Mapping techniques to understand what the lead-time (P) is composed of and to highlight areas of waste

TALENTO HUMANO

Producir mas de lo que el cliente necesita en ese momento

No utilizar su creatividad e inteligencia. Por falta de capacitacin, perdiendo tiempo, ideas y oportunidades de mejora.

SOBREPRODUCCION

SOBREPROCESO

1 2 3 5 4
Movimiento de los productos que no agregan valor MOVIMIENTO INVENTARIOS

Todo inventario por encima del inventario minimo necesario para la produccion o distribucion

7
Los errores en materia de diseo tanto de obra como de los procesos para su construccin originan fuertes costos producto del desarrollo de actividades sin valor agregado.

DEFECTO

ESPERA

Los tiempos en que una pieza debe esperar a otra para continuar su procesamiento. Tiempos que no agregan valor .

La necesidad de eliminar o retrabajar partes en proceso o productos terminados TRANSPORTE

Movimiento de de personas que no agregan valor

Lean Status

Where do we are?

Unnecessary waste

Necessary waste

months days hours minutes seconds

Value

Waste
Any Questions ?