WASTE ELIMINATION - Part 3

In  part two we have seen the cause , effect and solutions on Motion , Waiting and Overproduction wastes , in this post we are going to look in to rest of  wastes

Over processing:

Cause:

Processing activities are typically viewed as value added.  It is the manufacturing processes that add value to the product and to the customer.  Despite this, the process isn't valuable to the customer.  The resultant change to the product is what may be valuable to the customer.  This is an important distinction, because it is critical to assess every activity when eliminating waste.  It is easy to assume a process in the middle of a production line is essential, but under examination, many processes are found to unnecessary or overly complicated.

Simplifying processes is critical to the lean methodology, and it is at the core of eliminating processing waste.  Each activity in the production process should be assessed in detail.  The activity must add value to the customer, and must be an activity that cannot be accomplished automatically.  Otherwise, the activity should be eliminated or consolidated with other processes.  As with the other wastes, it is important to examine every activity or process through the lens of lean.  For this reason, it is preferable to look at all processes as potential waste.  This differs from the view of some lean practitioners who describe this waste as over processing, and encourage the acceptance of processing as value added.

The primary cause of some processing steps is a failure to recognize processing as a waste.  Every process in the manufacturing operation is often assumed to be value added.  This leads individuals to overlook processing as a source of waste.  The assumption is that the process wouldn't be there if it wasn't necessary.  In reality, many processes are unnecessary.

Another common cause of processing is complexity.  The more complicated a process is, the more likely there will be unnecessary steps.

In an office environment, processing is a very common waste.  This often comes in the form of reviews and approvals needed to make decisions.  Many steps in the approval process are likely to be steps that do not add value.  There may be necessary controls to ensure quality, fiscal responsibility and legal compliance, but each of these activities is inherently wasteful.  Streamlining or eliminating processing steps that add no vale can dramatically speed up an operation and reduce cost.

Effect:

As with the other wastes, processing adds costs.  It does this through the expenditures of materials and labor to complete the additional processing steps.  Each processing step introduces an opportunity for error.  If you only have one activity to make a part, there’s limited chance to introduce a defect.  If you have hundreds of steps, each step will introduce opportunities for errors.  Processing also slows an operation and extends lead times.  Each step takes time, and more importantly, the wait time between steps greatly increases lead times.

In an office environment, the increase in lead times due to processing steps is incredible.  Many tasks that require only a minute or two of actual work can take weeks or months to complete.  The more consolidated a process is, the faster it can be executed and completed.

Possible Solution:

The first step in eliminating processing is to recognize that processing activities can be wasteful.  Most professionals overlook processing as a waste.  Challenging these assumptions is critical to making your lean implementation successful.

The next step is to look for ways to consolidate processes.  If an activity is essential, look for ways it can be combined with other processes.  This strategy often leads to the construction of work cells that combine operations.

One of the most useful tools in eliminating processing is Value Stream Mapping.  Value Stream Mapping is a technique where a complete process is diagrammed in great detail, with processing times, queue times and batch quantities listed at each step.  Completing a Value Stream Map will often identify processing steps that are extremely costly, both in terms of resource costs and lead time increases.

In an office environment, Value Stream Mapping is an extremely valuable tool.  Many people will fail to recognize the complexity in routine processes because they only interact with a few steps in the process.  By mapping the processes, it can become clear that some activities are very process intensive with very little value added.

Defect :

Cause:

Poor quality and the resulting defects are a major source of cost for many companies.  This is also a cost that is often under reported as there are direct and indirect effects of defects.  A defect is any error in a process that makes a product or service less valuable to a customer, or that requires additional processing to correct the defect.

The adoption of lean at many companies started with a focus on quality.  Total Quality Management was a major manufacturing initiative before lean was adopted on a widespread basis.  It was easy for a company to recognize that defects were wasteful.  As a result, quality initiatives designed to reduce and eliminate defects are often some of the most mature lean initiatives in a company.

Defects arise out of processes that are poorly controlled.  A well designed process should produce acceptable results every time.  Few processes can achieve perfect quality every time.  Variations in raw materials, changes to machine setups, wear and tear on equipment, improper maintenance, poor training, and worker error can all lead to variations and quality defects.

In an office environment, defects also occur.  Poor planning, slow communications and inadequate training can all lead to errors in work.

Effect :

Defects cause both direct and indirect costs.  The direct costs are the lost materials and labor that went into the part that was defective, and the rework costs associated with correcting the defect.

Indirect costs from defects can be crippling to a company.  Every defective part that is produced uses capacity.  When demand is high and a bottleneck exits, defects will lead to lower revenues.  If defects are not identified and corrected, they can reach the customer.  A dissatisfied customer could be a best case scenario when you consider that substantial lawsuits are often a result of product defects.  There are numerous examples of defective quality leading to crippling liability awards in food, medical device, pharmaceutical, automotive, toy making, and other industries.

In an office environment, defects can be even more substantial than in manufacturing.  Office workers are often responsible for product design, service delivery, planning and scheduling, and compliance and corporate governance.  The failure to correctly assess risks at Lehman Brothers, or the failure to recognize improper trading by investors who trusted Bernie Mad off were high profile errors in risk management processes.

Possible Solution:

Improving quality and reducing defects have been studied and refined over a number of decades.  Total Quality Management is a great framework for improving quality.  Poke-a-Yoke is the lean activity where a process is error proofed.  More recently, Six Sigma has grown out of the TQM movement into a set of tools for refining processes and improving quality.

Overall, the lean methodology can be viewed as a set of tools and techniques for removing defects.  Streamlining processes and removing waste are activities geared toward delivering consistent value with minimal waste.  This can only be accomplished when processes are well designed and developed to ensure high quality products and services with minimal expenditure of resources.

The below table is showing the waste elimination of seven common wastes at any business entity

Seven Deadly Wastes	Description	Solution (Lean Tools)
OVER PRODUCTION	Making something before it is truly needed. This is a particularly serious form of waste because it leads to excess inventory that is often used to mask other underlying problems and inefficiencies.	Pace production so the rate of manufacturing matches the rate of customer demand (Takt Time). Use a pull system to control how much is manufactured (Kanban). Reduce setup times so that smaller batches can be economically manufactured (SMED).
WAITING	Time when work-in-process is waiting for the next step in production (no value is being added). It can be truly illuminating to look at the time from order to shipment and ask how much of that time is actually spent on true value-added manufacturing.	Design processes so that the flow is continuous and there are minimal or no buffers between steps in production (Continuous Flow). Use standardized work instructions to ensure that a consistent method and consistent times are used for each step of production (Standardized Work).
TRANSPORT	Unnecessary movement of raw materials, work-in-process or finished goods.	Design a linear, sequential flow from raw materials to finished goods (Value Stream Mapping). Make sure work-in-process is not placed into inventory (Continuous Flow). Avoid continual changing of job priorities (Theory of Constraints).
MOTION	Unnecessary movement of people, movement that does not add value.	Ensure that work areas are logically organized (5S). Consider alternate arrangements of equipment that reduce motion (Value Stream Mapping).
OVER PROCESSING	More processing than is needed to produce what the customer requires. This is often one of the more difficult wastes to detect and eliminate.	Compare customer requirements to manufacturing specifications (Kaizen). Look for potential simplifications to the manufacturing process (Kaizen).
INVENTORY	Product (raw materials, work-in-process, or finished goods) quantities that go beyond supporting the immediate need.	Bring raw materials in only as they are needed (Just-In-Time). Reduce or eliminate buffers between steps in production (Continuous Flow). Refer to Overproduction countermeasures (Takt Time, Kanban, and SMED).
DEFECTS	Production that is scrap or requires rework.	Design processes so they are less likely to produce defects (Poka-Yoke). Design processes to detect abnormalities so they can be immediately corrected (Jidoka). Look for the single most frequent defect and determine why it occurs (Root Cause Analysis). Create work instructions that provide a consistent method of manufacturing the part. (Standardized Work).

There is a 8^th Hidden waste at all the business entities. Top management is least bothered about it , that is a Untapped Human potential. Its Under utilizing capabilities, delegating tasks with inadequate training.

In normal practice any managers expect from his work man to work in the direction he has given or  as per the written work instructions or SOP. While working with the set work instructions these workman become expert in their  process and they are the one who are good in improving that process which may reduce the rest of 7 wastes.

A suitable training program and a recognition upon suggesting or implementing a new method eventually leads to more production and less waste. Every manger should have a training program schedule for his operations right from down the line helpers up to his direct sub ordinates. He should think in ways and means where down the line people will start thinking out of box and put their full efforts in improvement and eliminating the 7 wastes.