7. Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. What is Waste?
8. constraints on performance improvement Lack of funds, resources, time and personnel are the top four constraints that companies experience in achieving measurable improvements in business performance. Lack of Funds 43% Limited Resources 42% Lack of Time 40% Lack of Qualified Personnel 32%
14. Specify value : Specify value from the standpoint of the end customer by product family. Identify the value stream : Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. 5 principles of lean
15. Create flow : Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. Let the customer pull product through the value stream: Make only what the customer has ordered. 5 principles of lean
16. Seek perfection : As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste. 5 principles of lean
17. Improve quality: In order to stay competitive in today’s marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. Four Goals of lean
18. Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a company’s inventory costs due to storage needs. Four Goals of lean
19. overproduction (occurs when production should have stopped) Waiting (periods of inactivity) Transport (unnecessary movement of materials) Extra Processing (rework and reprocessing) Inventory (excess inventory not directly required for current orders) Motion (extra steps taken by employees due to inefficient layout) Defects (do not conform to specifications or expectations) The Seven Forms of Waste
20. Overproduction : Producing more/sooner than the Internal or External customer needs. Waiting :Long periods of inactivity for people, information, machinery or materials. Transportation :Excessive movement of people, information or materials. The Seven Forms of Waste
21. In appropriate processing: Using the wrong set of tools, procedures or systems. Unnecessary Inventory: Excessive storage and delay of information or products. The Seven Forms of Waste
22. Motion : people or equipment moving or walking more than is required to perform the processing. Defects : Frequent errors in paper work,product quality problems etc.. The Seven Forms of Waste
40. It take time to look above and below work areas for needed storage . WORK IN PROCESS
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42. Value Stream Mapping Lean Thinking diagnostic tool that allows you to: Visualize work “See the waste” (barriers to flow) Focus on improvements Value Stream = steps (value added and non-value added) that are required to complete a service from beginning to end
43. Value Added vs. Non-Value Added Value added activities The customer is willing to pay money for the process Work that changes the market form, fit or function Non-value added activities Should be eliminated, simplified, reduced, or integrated whenever possible Two types of non-value added activities: Required for business Not required for business
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45. If value added activities are increased by 10% = gain of only 2%!
46. Focus on reducing non-value added activities by 10% = gain of 8% value added!20% 80% Non-Value Added