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• Introduction – Value and Waste• Defining Value and Waste• Understanding and Eliminating Waste • Value and Waste• Types of Waste• Examples of Waste• Office Examples of Waste• Benefits of Lean• Remembering the Seven Wastes• Foundations of Project Success
Agenda
Defining Value and WasteValue Added Activity
• Done right the first time• Any activity that changes the form,
fit, function or finish of a product / transaction •Something customers are willing to
pay for•Addresses specific need(s) at a
specific timeand or a specific price
Non-Value Added Activity• Not done right the first time• Takes time / resources / space but
does not add value• Customer is not willing to pay for• All other actions and unwanted
features are by definition — WASTETypical process is 2-5% value-added activities… 95-98% waste!
Types of WasteUnnecessary Waste - adds no value and can be eliminated immediately. "That's embarrassing. Let's stop doing that."
Necessary Waste - adds no value, but is required for the way things are currently done. (e.g. Verification, approvals)
Observe that two things are ALWAYS happening. . .
Things that should be done
Things that should not be done WASTE
WORK
Time
After
Before
Value Added Work
After
Before
Non Value Added Work
Time
“It”…Either Adds Value or Does Not
Understanding and Eliminating Waste
Value and Waste
Value
Unnecessarywaste
Necessarywaste
Rework Missing
information Lack of / Poor
communication
Information that does not (from the viewpoint of the customer) add value to a good or service
Reviewing the business rules
Quality checks Building the metrics Resources consumed by
inefficient or non-essential activities
Designing the organizational tools
Transforming the information Assembling the part Creating the drawing
Examples of Waste
WaitingWaiting
Excess InventoryExcess Inventory
TransportationTransportation
Over ProductionOver Production
Excess MotionExcess Motion
Over ProcessingOver Processing
DefectsDefects
IT examples• Performance and Availability
Issues• Poor technical designs
• Unused HW, SW and / or licenses
• Multiple versions of the same reports or objects
• Required fields not really needed
• Not enough Poka-yoke• Buggy code
• Too many screens• Manually moving data from
one system to another
• Poor integration design• Utilizing non-standard
integration tools
• Over-solutioning (unused features)
• Duplicate functionality• Table scans of complete
databases
• More than one screen / system for the same transaction
• Input fields not organized
• Credit application awaiting approval
• Invoices waiting to be paid
• Missed customer due dates
• Data entry errors
• Duplicate entries
• Shipping hard copies that requiring signatures
• Running a credit check for every customer inquiry
• Looking / Searching for data and info
• Printing material for personal use
Transaction examples Product examples• Expensive machine running
at 30% capacity
• Material between operations and process steps
• Buffer & safety stock inventory
• Poor quality or fit of materials
• Handwork…polishing, deburring
• Conveyance of any materialsand tooling
• Conveyance systems
• Sub-assemblies and components between feeder and main line
• Operators bending, twisting, turning and reaching
• Machines “cutting air”• Robotic motion getting home
Office Examples of WasteDefects
• Data entry errors• Other order entry or invoice errors • Any error that gets passed downstream -
only to be returned for correction or clarification
• Changes (Not requested by the customer)• Design flaws• Employee turnover• Absenteeism
Office Examples of Waste - Cont’d
Over Production
• Printing paperwork (That might change) before it is needed
• Processing an order (That might change) before it is needed
• Any processing that is done on a routine schedule - regardless of current demand
Office Examples of Waste - Cont’d
Excess Inventory
• Purchasing or making things before they are needed (Think office supplies, literature...)
• Things waiting in an (Electronic or physical) In Box
• Unread email• Any form of batch processing (e.g.
Transactions, reports...)
Office Examples of Waste - Cont’d
Over Processing
• Relying on inspections / auditors or quality checks, rather than designing the process to eliminate errors
• Re-entering data into multiple information systems
• Making extra copies • Generating unused reports• Expediting• Unnecessarily cumbersome processes
(Think financial statement period end close, expense reporting, the budget process...)
Office Examples of Waste - Cont’d
Excess Motion
• Walking to copier, printer, fax... • Walking between offices • Central filing• Going on a "safari" to find missing
information• Backtracking back and forth between
computer screens
Office Examples of Waste - Cont’d
Transportation
• Movement of paperwork • Multiple hand-offs of electronic data • Approvals • Excessive email attachments • Distributing unnecessary Cc copies to
people who don't really need to know
Office Examples of Waste - Cont’d
Waiting
• Slow computer speed • Downtime (Computer, fax, phone...) • Waiting for approvals • Waiting for information from customer • Waiting for clarification or correction of work
received from upstream process
Office Examples of Waste - Cont’d
Confusion
• Any missing or misinformation • Any goals or metrics that cause uncertainty
about the right thing to do
Unsafe or Un-ergonomic
• Office work conditions that cause carpel tunnel, eye fatigue, chronic back pain, or that compromise the health and productivity of workers in any way
Office Examples of Waste - Cont’d
Under Utilized Human Potential(Performance / Talent)• Restricting employee's authority and responsibility to
make routine decisions • Having highly paid staff do routine tasks that don't
require their unique expertise • Not providing the business tools needed to perform
and continuously improve each employee's assigned work
• Not trusting your people to stop production in order to stop and fix a problem
• Not trusting people with a flat organization structure of largely self-directed teams
• Not expecting (and measuring) every person to contribute to continuous improvement
Excess Inventory
Full inboxes, lengthy To-Do lists, long work queues
Defects Memos / emails / documentation containing spelling and grammar errors
Waiting Delaying a meeting until a coworker returns from vacation
Over Production Excessive e-mail Cc’ing
Over Processing Routing documents for approval
Excess Motion Walking to the copier, printer, and fax machine
Transportation Interoffice mail / information
Business Process Analogues
Benefits of Lean
• Reduced Cycles• Better Delivery• More Capacity• Better Quality• Productivity
Improved CustomerSatisfaction
. . . Any Process or Value Stream
After
Before
Wait / Waste . . .Non Value Add TimeWait / Waste . . .Non Value Add Time
Lean Attacks Waste Here
Work . . . Value Add Time Work . . . Value Add Time
Lead Time / Cycle Time
Remembering the Seven WastesAn easy way to remember the seven wastes is TIMWOOD• T: Transportation• I: Inventory• M: Motion• W: Wait• O: Over
Processing• O: Over
Production• D: Defect
Another easy way is NOW TIME: It's now time to eliminate Mudas• N: Non Quality• O: Over
Production• W: Wait• T: Transportation• I: Inventory• M: Motion• E: Excess
Processing
An even better way is DOWNTIME which includes the all important 8th waste of Non Utilized Talent• D = Defects• O = Over
Production• W = Waiting• N = Non Utilized
Talent• T = Transportation• I = Inventory• M = Motion• E = Excess
Processing
Foundations of Project Success
Scope and Requirements
Sch
ed
ul
eProject Success
Qualit
y
Cost
Integrity and Safety