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Forms of Waste1What are the forms of waste?Waste of CorrectionWaste of OverproductionWaste of processingWaste of conveyance (or transport)Waste of inventoryWaste of motionWaste of waiting2Waste absorb resources but creates no value.First step towards waste reduction is waste identification.Majority of six sigma projects focus on one or more of these areas.1. Waste of correctionRepairing a defect wastes time and resources (Hidden factory)Operation 1TestTestProductOperation 2FailureInvestigationReworkFailureInvestigationReworkHiddenFactory3Example typing mistakes.Repair of pipeline, valvesHidden costs associated with catching and fixing defects before they pass through to the customer are represented by:More staffing More space More process time More material More moneyFirst time yield (number accepted / number tested) is flawed concept, since rework and replacement of scrapped unit is not considered.2. Waste of OverproductionProducing more than necessary or producing at faster rate than requiredExcess labor, space, money, handling4Excess parts purchased by storesOil storage tanks ?3. Waste of processingProcessing that does not provide value to the productExcess level of approvalsTying memos that could be handwrittenCosmetic painting on internals of equipmentPaint thickness more than specific values

5Difficult to classifyOften confused with waste of motion or waste of conveyance

4. Waste of conveyanceUnnecessary movement of material from one place to other to be minimized because -It adds to process timeGoods might get damagedConvey material and information ONLY when and where it is needed.

6Moving material or moving empty containers5. Waste of inventoryAny excess inventory is drain on an organization.Impact on cash flowIncreased overheadsCovers Quality and process issuesExamplesSpares, brochures, stationary,

7Moving material or moving empty containers6. Waste of MotionAny movement of people, equipment, information that does not contribute value to product or service

8Moving material or moving empty containers7. Waste of WaitingIdle time between operationsPeriod of inactivity in a downstream process because an upstream activity does not deliver on time.Downstream resources are then often used in activities that do not add value, or worst result in overproduction.

9Moving material or moving empty containersSome more sources of WasteWaste of untapped human potential.Waste of inappropriate systemsWasted energy and waterWasted materialsWaste of customer timeWaste of defecting customers

10Waste of untapped human potential. not using creative brainpower of employeesWaste of inappropriate systems Automating processes that should be removed, extensive record keeping, approvalsWasted energy and waterWasted materials Conserving material through lifecycle - during design, fabrication, manufacturingWaste of customer time Internal customersWaste of defecting customers It costs 5 times more to acquire a customer as it does to retain one