How to come to continuous imprvement?
Added Value or Added Cost?
Employees have both added value activities and added cost activities
Examples of Waste
- Material handling
- Yield losses
- Long change-overs
- Inspection
- Waiting time
- Reword
- Machine breakdowns
- Paperwork
- Unnecessary used space
- Inventory
- Non-running bottlenecks
The nine wastes
- Waste from overproduction
- Waste of waiting time
- Transportation waste
- Processing waste
- Inventory waste
- Waste of motion
- Waste from product defects
- Waste of not using people's talents
- Sometimes even waste of information
Groups of Waste
- Waste of Material (Scrap)
- Waste of Labor (Non-Value adding Activities)
- Waste of Capital (Inventory - Loss of Capacity - Space)
Waste : four questions
- Wat are you doing to reduce waste?
- How much time do you spend on reducing waste?
- Do you know how much waste can be eliminated?
- Do you really know how much waste there is?
Barriers to Waste Elimination
We have our efficiency targets, but:
- Who is setting the efficiency targets?
- Who is producing the improvement plans?
- Does the shop floor own the targets and the plans?
Waste reduction is : removing Non-Value-Adding Activities
Cost reduction program is likewise, but then analysts must calculate monetary saving which adds costs, not value.
Who to eliminate waste
Waste is everywhere, so Elimination of Waste is everyone's business
Waste should be eliminated through Continuour Improvement
Waste Elimination Effort
- 20& Knowing the Techniques
- 80% Using the Techniques and the motivation of People
Personal Journal on Waste
- Temporary storage
- Carrying heavy workpiece
- Counting the number of parts
- Keypunching the inventory count into the computer
- Watching the maching run
- Transferring parts over a long distance
- Overproduction and double handling
- Accumulating inventories
- Machine breakdown
- Waiting for material to work on
- Looking for tools
- rework
- Defects
- Parts shortage
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