Why Reduce Waste

7/27/2019 Why Reduce Waste

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Identification of Waste

Input(Resources)

Transformation Output

EnergyPeople

Capital

Water

Materials

Tools

ProductsServices


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Purpose of Waste

Educate supplier of the evils of waste What

Where

Why Steps to reduce and/or eliminate

Show improvement potential that exists Improve the processs value added

content


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Input(Resources)

Transformation Output

EnergyPeople

Capital

Water

Materials

Tools

ProductsServices


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Defining Waste

Webster: to consume carelessly

squander

fail to take advantage

uncultivated area

junk

worthless residue

loss energy

grow weaker


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Definition of Waste

Anything that doesnt add value to the

process

Anything that doesnt help create

conformance to the customers

specifications

Anything your customer would be unwilling

to pay you to do


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Understanding Waste

Identification and elimination of waste isthe central focus of a lean system

It is dependent on the understanding andinvolvement of all employees.

Successful implementation requires allemployees to be trained to identify andeliminate waste from their work areas


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Understanding Waste

Waste exists in all work andat all levels in the organization


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Understanding Waste

Waste: Anything other than the minimumresources

Equipment and tooling Direct and indirect labor

Material

Floor space

Energy

Absolutely necessary to add value to the product!


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Types of Waste:

Inventory

Overproduction

Correction

Materials and information movement

Processing Waiting

Motion


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Waste of Inventory

Symptoms

Complex tracking systems Extra storage and handling Extra rework/hidden problems Paperwork/documents

Stagnated information flow High disposal costs Obsolete material / landfill In-process packaging High utility costs

Root Causes

Product complexity Incapable processes Unleveled scheduling Poor market forecast

Unbalanced workload Unreliable supplier shipments Inadequate measurement Misunderstood

communications Reward system

Definition: Any supply in excess of customer requirements necessary

to produce goods or services just-in-time


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Inventory Hides Problems!!

Inventory Hides Waste!!


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Why We Want To Reduce Inventory

1. Interest expense associated with working capital: Requirements to produce goods:

People, materials, facility, know-how, customers An organization + working capital

Working Capital = Cash + Inventory + Accounts Receivables Accounts Payables

- collect faster- defer payments

- reduce inventory

Benefits of reducing inventory in working capital: Save interest expense Free up cash for investment

2. The greater the inventory, the greater the handling: Forklifts, bins, containers, indirect labor to move/store the inventory Administrative effort and cost to control the inventory (losses, locating and

counting)


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3. Inventories deteriorates, causing more scrap and rework: Metal rusts Lubricants dry out Materials accumulate dirt

3. Inventory takes up space: Adds cost to heal, light, and insurance

Facilities should be used for Value-added activities (i.e. production rather thatwarehousing)

3. Guiding principles of lean manufacturing: Elimination of buffers makes problems surface and forces organization to

address and resolve problems Leads to need for:

Pull systems

Quick die setup Manufacturing organized by product rather than process Good balancing Multifunctional workers Preventive maintenance Etc.


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6. Reduce scrap / rework. When defect is detected, the entire inventory has

to be scrapped, reworked, and/or sorted.


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WASTE of Overproduction

Symptoms Excessive raw materials

Extra inventory Unnecessary work Excessive floor space utilized Unbalanced material flow Backups between departments Complex information management

Disposal charges Extra waste handling and

treatment High utility costs

Root Causes: Just-in-case logic

Misuse of automation Long process set-up Unleveled scheduling Unbalanced workload Over engineered

equipment/capability

Redundant inspections Lack of reuse and recycling

Definition: Producing more than needed

Producing faster than needed


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WASTE of Correction

Definition: Any supply in excess of customer requirements necessary

to produce goods or services just-in-time

Symptoms Rework, repairs and scrap

Added inventory costs Customer returns Loss of customer confidence Loss of business Missed shipments / deliveries Hazardous waste generation

Root Causes: Weak process control

Questionable quality Lack of error proofing Unbalanced inventory level Deficient planned maintenance Poor product design Customer needs not understood

Improper handling Poorly managed waste streams Inadequate training


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WASTE of Material and Information

Movement

Definition: Any material or information movement.

Symptoms

Extra handling Extra handling equipment Extra inventory Large storage areas Over-staffing Reduced quality

Extra paperwork Extra hand-offs Transport of disposal Excessive energy consumption Excessive emissions

Root Causes:

Mislocated materials Unleveled scheduling Unfavorable facility layout Redundant inspections Poor workplace organization and

housekeeping

Poorly managed waste streams Unbalanced processes Supply chain management


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WASTE of Processing

Definition: Effort which adds no value to the product or service from the

customers perspective.

Symptoms Unnecessary work

Extra equipment Longer lead time Reduced productivity Extra material movement Sorting, testing, inspection Inappropriate use of resources

Excess energy consumption Processing by-products

Root Causes: Product changes without process

changes Just-in-case logic Lack of communication Redundant approvals Extra copies, excess information Undefined customer requirements

stop-gap measures that becomepart of the process Lack of reuse / recycling


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WASTE of Waiting

Definition: Idle time created when people wait for machines,people wait for people, machines wait for people,

and machines waiting on machines

Symptoms Under-utilization of resources

Reduced productivity Increased in investment Idle equipment Large waiting / storage rooms Equipment running, not producing Unnecessary testing

Root Causes: Unbalanced workload

Unplanned maintenance Long process set-up times Misuse of automation Quality problems Unleveled scheduling Ineffective layout

Specialization


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WASTE of Motion

Definition: Any movement of people or machines

Symptoms Reduced productivity

Large reach / walk distances Longer lead times Excess handling Reduced quality People / machines waiting High energy cost

Inappropriate use of resources

Root Causes: Poor ergonomics / layout

Machine / process design Inconsistent work methods Poor workplace organization and

housekeeping Extra busy movements while

waiting


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Resource Conservation and

Pollution PreventionOpportunity Symptom (s) Root Cause (s) Corrective Action Suggestions

Energy High utility cost Outdatedtechnologies

Deficient plannedmaintenance

Need forconservationpractices

Useless energy intensive methodthan compressed air for cooling, partsmoving and agitating liquids

Repair Steam and compressed airleaks

Install motion detection switches orlighting systems

Water High water usage

High treatmentcosts

Poor process design

Incomplete jobinstructions

Re-circulate and reuse cooling water

Throttle back water valves on leakdetection and overflow rinse tanks

Find ways to reduce water usage

Install automatic valves to stop water

flow when equipment is not beingused

transportation High fuel cost

Smog andpollution

Lack ofconsideration onenergy andenvironmentalimpacts

Consider fuel consumption andtailpipe emission reductions whenoptimizing transportation logistics


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Hazardous waste Hazardouswaste

Toxic emissions

High disposalcosts

High pollutioncontrol costs

Product design

Materialsspecifications

Lack ofconsideration ofenvironmentalimpacts

Utilize non-solvent-based coatingsand cleaners

Purchase only non-toxic materialsand products

Use a metals reclamation and washsystem to recover metals and reducewastewater effluent

Non-hazardouswaste

Excess materialusage

Excess storageand handling

High disposal

costs

Lack of reuse andrecycling procedures

Incomplete processinstructions

Insufficient

workplaceorganization

Inadequateeducation andtraining

Segregate waste packaging in-process to avoid manual sorting forrecycling

Utilize all materials in containers anddrums

Utilize only two-sided copyingRecover and use scrap materials inthe production process

Repair and reuse pallets


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Product design Toxic emissions

Hazardous waste

High engineeredscrap rates

High disposal costs

High pollutioncontrol costs

Employeeexposures tohazardous materials

Product design

Materialsspecifications

Specifications ofvirgin materialuse only

Lack ofconsideration onenvironmentalimpacts

Provide suppliers with performance-based rather than prescriptivespecifications for products

Specify the use of recycled-contentin products

Consider environmental and humanhealth impacts of manufacturing, useand disposal during design stages

Design products for disassembly,recycle and reuse

EnvironmentalManagement

Poor planning

Lack ofknowledge of theprocess

Inadequatemeasurementsystems

Incomplete jobinstructions

Provide job instructions in the correctamounts of materials to use and

proper waste recycling procedures

Post information for employees toincrease awareness of the cost andenvironmental impacts of waste

Establish environmental policies andgoals. Integrate these goals into theemployee performance review and

compensation system


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Why Reduce Waste

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