Seven wastes of lean operations management

1. SEVEN WASTES OF LEAN
OPERATION MANAGEMENT
Presented By
Hriday Bora (Ops)
15010121068

2. LEAN DEFINITIONS
Waste: Anything other than the exact amount of
equipment, materials, parts, space, and workers' efforts
that are absolutely essential to add value to a product
Value-Added: Anything that the customer wants and is
willing to pay for it
Non-Value-Added: Anything that the customer doesn't
wants and won’t pay for it

3. SEVEN WASTES OF LEAN OPERATION
MANAGEMENT TOOLS
The seven wastes are categories of unproductive
manufacturing practices identified by Taiichi Ohno, the
father of the Toyota Production System (TPS). The
categories are an integral part of the TPS (known as lean
production in North America)

4. TOYOTA PRODUCTION SYSTEM
The Toyota Production System definition states that it is: “A
philosophical approach to business that is based on
satisfying the customer (internal or external) by producing
quality products that are just what they need, when they
need them, in the quantity required using a minimum of
materials, equipment, space, labor and time (in summary: To
eliminate wastes).”

5. SEVEN WASTES
1.Overproduction
2.Waiting
3.Transportation
4.Inappropriate processing
5.Excessive inventory
6.Unnecessary motion
7.Defects

6. OVERPRODUCTION
Producing more products than is needed, faster than needed
or before they are needed is a waste.
Consequences:
Loss of Production Control
Fixing rejects becomes a low priority.
Increased Mix-ups, mistakes and confusion
Valuable time and resources consumed (wasted)
building products that are not a priority

7. Causes:
Poor Planning Process
“Just-in-case” instead of “Just-in-time” production
Poor communications between departments
Low Capability Processes, that are unable of producing
the quantity and/or quality required in a consistent
basis.
Prolonged setup and cycle times
Sub-optimization caused by local optimization
(Processes that benefits a single department’s interests
against the organization’s interests)
Low equipment reliability.

8. WAITING
Wait time waste occurs when a worker cannot proceed with
the next task in a process.
Causes:
Lack of an adequate maintenance
Need of proper tools or materials
Lengthy setup times
Lack of cross training
Lack of SOP or undocumented work methods
Production bottle necks
Irregular distribution of training.

9. Consequences of Wait Time waste:
Personnel that cost doing nothing (adding no value)
Delays that lead to overtime to conclude what was programmed
Costs due to inefficient processes that exceed the standard costs.
Loss of motivation
Low morale.

10. TRANSPORTATION WASTE
Any material movement that does not directly support
immediate production.
Causes:
Improper Facility Layout
Large buffers
Large lot purchasing or processing
Poor production planning
Poor scheduling
Poor workplace organization.

11. INAPPROPRIATE PROCESSING
Any unnecessary step, either production or communication,
that adds no value to a product or service.
Causes:
Lack of a concurrent design
Processes poorly documented (Lack of SOP’s)
Lack of customer input concerning requirements
Poor configuration control
Quality Standards not related to customer needs
Redundant inspections and approvals.

12. EXCESSIVE INVENTORY
Any supply (Materials or Goods) in excess of what is
required to deliver products in a Just-In-Time manner.
Causes:
Poor sales forecasting (Demand Forecasting)
Long lead times (set-up and cycle times)
Poor inventory planning
Poor inventory tracking
Unbalanced production processes. Processes that can
not produce the required quantity or quality of products
in a consistent manner.

13. UNNECESSARY MOTION
Any movement of people which does not contribute to add
value to the product or service.
Causes:
Ineffective Layouts (equipment, office and plant)
Lack of Visual controls
Poor Process Documentation
Poor workplace organization.

14. DEFECTS WASTE
Costs due to sorting, repairing and/or repairing products.
Include cost of materials scrapped due to defects.
Causes:
Too many product models
High inventory levels
Inadequate tools/equipment
Poor employee training
Poor layouts
Unnecessary handling
Poor process documentation