THE SEVEN CLASSESTHE SEVEN CLASSESOF WASTEOF WASTE

What is “Waste”?What is “Waste”?

Value for Whom?Value for Whom?

Find and Eliminate Waste….Find and Eliminate Waste….

SS

#1 Excess Production#1 Excess Production Examples:Examples:__________________________________________________

______________________________________________________ Excess production hides problems and Excess production hides problems and

createscreates: : Extra inventory, handling, equipment usage, Extra inventory, handling, equipment usage,

space, quality problem issues, etc.space, quality problem issues, etc.

Production should be determined by the Production should be determined by the customer, not “false targets” such as customer, not “false targets” such as utilizationutilization..

#2 Waiting or Watching#2 Waiting or Watching

Causes:Causes: Waiting for MaterialsWaiting for Materials Waiting for Equipment/ToolsWaiting for Equipment/Tools Waiting for Repairs/ServiceWaiting for Repairs/Service Waiting for Large Lots to FinishWaiting for Large Lots to Finish Watching Unreliable ProcessesWatching Unreliable Processes Watching for ProblemsWatching for Problems

Effects Effects Wastes Time Wastes Time

#3 Conveyance or #3 Conveyance or TransportationTransportation

Causes:Causes: Poor Layouts Poor Layouts (Long distances (Long distances

between process operations)between process operations) Large Production LotsLarge Production Lots Batch ProcessesBatch Processes Poor SchedulingPoor Scheduling

Effects Effects Wastes Time Wastes Time

#4 Processing Itself#4 Processing Itself

Causes:Causes: Poorly Maintained EquipmentPoorly Maintained Equipment Improper/ Poor Tooling Improper/ Poor Tooling Excess Checking/StoppingExcess Checking/Stopping Improper MaterialsImproper Materials Errors in Processing/SetupErrors in Processing/Setup Poor/no Work InstructionsPoor/no Work Instructions

Effects Effects Wastes Time Wastes Time

#5 Inventory#5 Inventory

Causes:Causes: Long SetupsLong Setups Large Batch SizesLarge Batch Sizes ““Mindset” of ComfortMindset” of Comfort Reliance on “MRP” to reorderReliance on “MRP” to reorder Batch ProcessingBatch Processing

Effects Effects Wastes Time & Hides Wastes Time & Hides Real Problems Real Problems (quality, scheduling, (quality, scheduling, suppliers, maintenance, attendance, etc.)suppliers, maintenance, attendance, etc.)

#6 Motion#6 Motion

Causes:Causes: Poor Layouts & FacilitiesPoor Layouts & Facilities Poor Work Place DesignsPoor Work Place Designs ““Lost: Items/SearchingLost: Items/Searching Lack of Needed Tooling & Lack of Needed Tooling &

EquipmentEquipment Effects Effects Wastes Time Wastes Time

#7 Producing Failures#7 Producing Failures

Causes:Causes: Poor TrainingPoor Training Poor Manufacturing InstructionsPoor Manufacturing Instructions Poor Equipment & ToolingPoor Equipment & Tooling Poor MaterialsPoor Materials ________________________________________________________________

Effects Effects Wastes Time Wastes Time

How to Identify and Target How to Identify and Target Waste with KaizenWaste with Kaizen

You can’t eliminate You can’t eliminate

what you don’t see.what you don’t see.

Add Value?Add Value?

Supplier

Internal or External

Work Station Process

Customer

Internal or External

PROCESS MODELPROCESS MODEL

CUSTOMER FOCUSCUSTOMER FOCUS

EACH PROCESS HAS ITS OWN EACH PROCESS HAS ITS OWN SUPPLIER AND CUSTOMER.SUPPLIER AND CUSTOMER.

Ultimate or external customer.Ultimate or external customer. Immediate or internal customer.Immediate or internal customer.

Define and understand your customer’s Define and understand your customer’s needs and expectations.needs and expectations.

WHO ARE YOUR WHO ARE YOUR CUSTOMERS?CUSTOMERS?

WHO ARE YOUR ULTIMATE CUSTOMERS?WHO ARE YOUR ULTIMATE CUSTOMERS?

WHO ARE YOUR IMMEDIATE WHO ARE YOUR IMMEDIATE

CUSTOMERS:CUSTOMERS:

WHAT ARE YOUR WHAT ARE YOUR

CUSTOMER’S NEEDS, REQUIREMENTS, CUSTOMER’S NEEDS, REQUIREMENTS, AND EXPECTATIONS:AND EXPECTATIONS:

MANAGING UPSTREAMMANAGING UPSTREAM

Effective process focus requires you to go Effective process focus requires you to go back to the previous process to seek out back to the previous process to seek out a problem’s causes.a problem’s causes.

Improvement requires that we always be Improvement requires that we always be aware of what comes from the previous aware of what comes from the previous process. (Supplier).process. (Supplier).

Defining Process FlowDefining Process Flow

Use Use VisualVisual process mapping/charting process mapping/charting techniques:techniques: Process Charts for ProductsProcess Charts for Products Flow Charts for SystemsFlow Charts for Systems Functional Deployment Map for Actions and Functional Deployment Map for Actions and

FunctionsFunctions Value Stream Maps (VSM) for Materials and Value Stream Maps (VSM) for Materials and

InformationInformation

Define and understand your processes to identify and eliminate waste.

PROCESS CHARTSPROCESS CHARTS

Aid inAid in:: Visualizing and understanding the processVisualizing and understanding the process Identifying specific operations for improvementIdentifying specific operations for improvement Understanding effects of changes in one step on Understanding effects of changes in one step on

othersothersPurposesPurposes:: Reduce operator/material movementReduce operator/material movement Order activities properlyOrder activities properly Balance work of operator and machineBalance work of operator and machine eliminate unnecessary idle time and all forms of wasteeliminate unnecessary idle time and all forms of waste

I. Process ChartI. Process Chart

*details all work done by or on one product*details all work done by or on one product

Symbol Action Classification Predominant Result

Operation

Transportation

Inspection

Delay

Storage

Produces or Accomplishes

Moves

Verifies

Interferes

Keeps

Operation Process Chart showing intensity of material flow and the out-flow of chips and scrap (Muther, R. Systematic Layout Planning. CBI Publishing Company, Inc., Boston, 1973).

Casting Sheet Steel

Storage

Bolts

3 Tons Turnings 0.3 Tons

Turnings 0.3 Tons

3.3 Tons

Turn

4 Tons

0-5

0-4 0-1

0-2

0-3

0-6

Scrap 2 Tons

Offal 1 TonDrill

7 Tons

3 Tons

9 Tons

Blank

9 Tons

Trim

10.5 Tons

Assemble/ Inspect

Form

Horizontal line indicates material feeding into process

Vertical line indicates steps of process arranged in chronological sequence

A.

B. Horizontal lines give way when lines cross

Material in-feed line

Process sequence line

C. Typical process diagram

Symbol and Number

Time/Place Description

Paint0.0240

Test2

4

D. Assembly work charting starts in upper right corner of sheet with largest component or one having most operations.

Purchased item or material

E. Alternate routings shown by split and rejoined lines

1

2

5

4

3

F. Material returned for rework

1

3

G. Material flow with yield, loss or scrap

1

4

98 tons/day

Scrap

14

H. Complex charts aided by arrows, curved corners

1

6

7

2

PROBLEM SOLVING PROBLEM SOLVING ATTITUDEATTITUDE

Analyze the chart using the “Questioning Attitude”: Analyze the chart using the “Questioning Attitude”: Does the activity add value for the customer?Does the activity add value for the customer?

IF NOT …IF NOT …

Determine how can activities be:Determine how can activities be: Eliminated?Eliminated? Simplified?Simplified? Changed in sequence?Changed in sequence? Combined?Combined? Standardized?Standardized?

FLOWCHARTSFLOWCHARTSA flowchart is a pictorial representation of a logical decision process, which identifies all of the major steps and decision points involved in progressing from the beginning to the end.

Flowcharts provide a global overview of a “procedure” clearly identifying how each step is related to the others in order to accomplish a particular objective.

Begin

Step 1

Decision 1 YesNo

Step 2End

Etc.

FLOWCHART USEFLOWCHART USE

To better To better understandunderstand and agree on what the process and agree on what the process is in terms of is in terms of actions and decision pointsactions and decision points

To determine how the process To determine how the process currently workscurrently works

To determine how the process To determine how the process should workshould work

To To identify “waste”identify “waste” and opportunities for and opportunities for improvementimprovement

FLOWCHART USE Continued

To check if the procedure “as written” flows and terminates in a logical sequence, ensuring that all steps are considered and not “left dangling.”

To document procedures (Common with ISO/QS 9000)

To facilitate new employee training

FLOWCHART SYMBOLS

Depict time consuming steps in a process. Examples: Inspect a product, machine a part, record the results, etc.

Activityor

Task

Depict questions/checks and show alternative outcomes depending on the result. Examples: Is the part nonconforming? If yes, do one thing. If no, do another.

Decision

NoFalseRejectFail

YesTrueAcceptPass

FLOWCHART SYMBOLS Continued

Depict documents used to perform tasks or records generated by the activity. Examples:

Work Instructions (in) Scrap Record (out).

Document or Record (used or generated)

Depict the beginning or end of a procedure/process.

Terminator(Begin or End)

FLOWCHART SYMBOLS Continued

Depict the flow of logic, decisions, or steps of documentation.Flow

Depict transfer of flow to a location or show the identity of a location.

A

Start

Customer Issues Resolution Process (CIRP)

Should issue beredirected to another

department?

No

Process Map (Flowchart)February 3, 2003

Record Issue

initial issue detailsare recorded inFranklin planner

Customer Issue Reported

customer issue is receivedby GSE department leader

either via e-mail, voice-mail, or by direct contact

Indentify Cognizant Engineer

GSE management identifiesresponsible cognizant

engineer and schedulestransmittal meeting

Transmittal Meeting

GSE managementtransmits all knownissue information tocognizant engineer

Clarify Issue

GSE engineer contactscustomer directly to

clarify the issue,problem, or concern

Investigate & PerformResearch

review CMM's gather drawings identify relevant sources

of information determine scope of issue

Report Initial Finding

Report initial findings toGSE management

Is work coveredunder Product Support

Agreement?

Determine Budget Authority

GSE managementdetermines what budget will

be used to pay for work

Notify Customer

scope of issue isoutside of productsupport agreement

PrepareQuote?

Yes

Yes

No

Authorize Work

GSE managementauthorizes work to be done

GSE Engineer Performs Work

develop plan develop schedule make changes to drawings write PAR etc.

EndNo

Supply Customer WithFinished Product

provide customer withfinished product materials

and data

Yes

EOSCoordinator

Task ResponsiblePersonnel

Determine the divisions having the bestand worst overall results

Form strategy teams

Start process

Compare results of three divisions forthe previous three years

Analyze data and make improvementplans

Collect additional data

Implement improvement Plans and informdirector

DivisionManagers

Distribute employeesurvey results

Director

Discuss results with all division managers

Enough data to make improvementplans?

Share Information

Do further analysis and modifyimprovement plans

Yes

Satisfied with analysis and improvementplans?

StrategyTeams

End Process

No

Functional Deployment Map

• A graphic tool for describing how material and information actually move through your process, and identifying the nonvalue-added activities within the process.

• Used to streamline and drive changes in the process by removing queuing, movement, delay and other activities for which a customer is unwilling to pay.

•Typically created in two phases: current state and future state.

Value Stream Mapping (VSM)

Example from Quality Digest March 2006, pg 41-46Example from Quality Digest March 2006, pg 41-46

Step one: MeetingStep one: Meeting

Set up a meeting between the management team and Set up a meeting between the management team and value-stream process ownersvalue-stream process owners

State the purpose of the VSM event – to map the value State the purpose of the VSM event – to map the value stream as it currently exists and works and gain an accurate stream as it currently exists and works and gain an accurate understanding of how the process operates. understanding of how the process operates.

Used to quiet any defensiveness on the part of process Used to quiet any defensiveness on the part of process owners because the map will probe deeply into their work owners because the map will probe deeply into their work life and make visible most of the wastelife and make visible most of the waste..

Step two: TrainingStep two: Training

Train the VSM team for two purposes. Train the VSM team for two purposes. First, the team needs to First, the team needs to understand the conceptsunderstand the concepts of lead of lead

time, waste, value-added activities and nonvalue-added time, waste, value-added activities and nonvalue-added activities as they pertain to lean methodologies. activities as they pertain to lean methodologies.

Second, the team must work from a standard set of Second, the team must work from a standard set of definitions and icons when drawing the VSM.definitions and icons when drawing the VSM.

The team then assigns two to four of its members to The team then assigns two to four of its members to construct the current-state map.construct the current-state map.

Step three: Data CollectionStep three: Data Collection

Pick a particular product of the value stream and follow it Pick a particular product of the value stream and follow it through the process if the lead time is less than the number of through the process if the lead time is less than the number of days scheduled for the event. (usually 2 days)days scheduled for the event. (usually 2 days)

Data on each activity within the value stream should be Data on each activity within the value stream should be collected and can include:collected and can include:

Cycle timesCycle times Changeover or setup timesChangeover or setup times Number of people involvedNumber of people involved Quantity of units processedQuantity of units processed Quantity of changeovers for a given time periodQuantity of changeovers for a given time period DowntimeDowntime Batch sizesBatch sizes Number of items waitingNumber of items waiting

Step four: Map ConstructionStep four: Map Construction

The current-state map can be constructed after each The current-state map can be constructed after each activity has been observed and the data have been activity has been observed and the data have been collected. collected.

Label each activity in a process box, with the data for that Label each activity in a process box, with the data for that activity listed below it. activity listed below it.

Use arrows to show the flow of the productUse arrows to show the flow of the product Use triangles between the process boxes to depict inventory Use triangles between the process boxes to depict inventory

levels of work in process before each activity. levels of work in process before each activity. Draw icons and arrows opposite the product flow to show Draw icons and arrows opposite the product flow to show

communication flows - they signal upstream activities that will communication flows - they signal upstream activities that will react to downstream information.react to downstream information.

Step four: Map Construction cont.Step four: Map Construction cont.

The current-state map can be constructed….The current-state map can be constructed….

Draw a saw tooth diagram underneath the value stream to depict Draw a saw tooth diagram underneath the value stream to depict process and lead time. Write the time to process a single unit of product process and lead time. Write the time to process a single unit of product on the diagram’s upper teeth, and the queue time on the lower teeth.on the diagram’s upper teeth, and the queue time on the lower teeth.

Calculate the process time for the value stream by adding the times Calculate the process time for the value stream by adding the times along the upper teeth of the saw tooth diagram. along the upper teeth of the saw tooth diagram.

Calculate the total lead time by adding all the times on the upper teeth Calculate the total lead time by adding all the times on the upper teeth and the lower gaps together. and the lower gaps together.

Calculate the percent of the total lead time represented by the process Calculate the percent of the total lead time represented by the process time.time.

Customers begin arriving at 7 a.m.

for 9 a.m. opening

Customers sit down and wait for their number to be

called between each station

Customer

Receive queuing ticket

*C/T=2 min500 cust/day2 examiners

Processed for written exam

C/T=6 min80 cust/day1 examiner

Take test on com-puter testing station

C/T=15 to 60 min12 computersComputerized testing in English only

I3 to 8 people

I5 to 10 people

I100 to 200 people

Legend*C/T = Cycle time

** = InventoryI

**

2 min

90 min 20 min 0 min 15 min

6 min 20 min

Figure 1: Driver’s License Issuance:Current-State Map

Customers shuffle back and forth through service center: no flow

Total processing time = 34.5 minutesTotal lead time = 289.5 minutes

Score test and receive passing documentation

CT=2 min for compC/T=5 min for foreign language1 examiner40% failure rate

Complete appli-cation, sign and enter in system

C/T=2.5 min450 cust/day4 examiners5% rejected for lack of documentation

Capture photo and receive money

C/T=1.5 min450 cust/day2 cameras4 printers2 examiners

I100 to 200 people

I5 to 10people

I60 to 120 people

Legend*C/T = Cycle time

** = InventoryI

2 min

15 min 75 min 45 min

2.5 min 1.5 min

10 min

.5 min

Pick up driver’s license

C/T=.5 min425 cust/day2 examiners5% scrap rate

I3 to 5 people

Figure 1: Driver’s License Issuance:Current-State Map

Step five: ReviewStep five: Review

Once the current-state map is completed, call a meeting Once the current-state map is completed, call a meeting of the managers and process owners to review the map of the managers and process owners to review the map and validate the information.and validate the information.

The data on the map are open for questions, and a consensus The data on the map are open for questions, and a consensus must be reached before going any further. must be reached before going any further.

An 80-percent accuracy level is acceptable if the team struggles An 80-percent accuracy level is acceptable if the team struggles to come to a consensus on any data because prior to completing to come to a consensus on any data because prior to completing the map, no level of accuracy had existed at all.the map, no level of accuracy had existed at all.

Step six: Set Targets for ImprovementStep six: Set Targets for Improvement

Use brainstorming to target improvement initiatives to Use brainstorming to target improvement initiatives to eliminate and reduce bottlenecks and lead times.eliminate and reduce bottlenecks and lead times.

Use an Affinity Diagram, Interrelationship Digraph, or Tree Use an Affinity Diagram, Interrelationship Digraph, or Tree Diagram as appropriate.Diagram as appropriate.

Avoid developing improvement initiatives that only focus on the Avoid developing improvement initiatives that only focus on the process steps where products are being transformed. Often process steps where products are being transformed. Often more than 95 percent of the time in a value stream is spent more than 95 percent of the time in a value stream is spent performing activities that don’t add value. [Remember, the goal performing activities that don’t add value. [Remember, the goal of VSM is to target these nonvalue-added activities for waste of VSM is to target these nonvalue-added activities for waste elimination or reduction.]elimination or reduction.]

Use an effect/cost approach to prioritize the improvement Use an effect/cost approach to prioritize the improvement plan.plan.

Step six: Set Targets …. Cont.Step six: Set Targets …. Cont.

TThe team brainstormed the following improvement initiatives:he team brainstormed the following improvement initiatives: A creative staffing plan that allows for extended hours to eliminate a deluge at A creative staffing plan that allows for extended hours to eliminate a deluge at

the beginning of the day.the beginning of the day. Written instructions in multiple languages detailing exactly the forms and Written instructions in multiple languages detailing exactly the forms and

documentation needed for each service a customer may need.documentation needed for each service a customer may need. Redesign the application forms for easier understanding and create a desk with Redesign the application forms for easier understanding and create a desk with

template examples where customers can fill out their own paperwork.template examples where customers can fill out their own paperwork. Create online practice exams in multiple languages.Create online practice exams in multiple languages. To decrease the failure rate, charge for a second test attempt.To decrease the failure rate, charge for a second test attempt. A computer-based testing in multiple languages, eliminating paper and pencil A computer-based testing in multiple languages, eliminating paper and pencil

testing and manual scoring.testing and manual scoring. One more camera at the photo station to keep up with demand.One more camera at the photo station to keep up with demand. A a first-in, first-out line for photos and license receipt to prevent customers from A a first-in, first-out line for photos and license receipt to prevent customers from

sitting and returning to the process.sitting and returning to the process. Redesign the layout of service centers to eliminate confusion and create a Redesign the layout of service centers to eliminate confusion and create a

continuous flow of customers.continuous flow of customers. Create a one-stop help desk for customers who have unusual circumstances so Create a one-stop help desk for customers who have unusual circumstances so

they don’t disrupt the flow.they don’t disrupt the flow.

Step seven: Draw the Future-state MapStep seven: Draw the Future-state Map

Data in the future-state map are derived from targets that Data in the future-state map are derived from targets that will evolve as a result of implementing the improvements.will evolve as a result of implementing the improvements.

In most cases, the future-state map will look similar to the In most cases, the future-state map will look similar to the current-state map, with the addition of improved metrics. current-state map, with the addition of improved metrics.

If activities in the current-state map can be eliminated or If activities in the current-state map can be eliminated or combined, this should be reflected in fewer process boxes combined, this should be reflected in fewer process boxes in the future-state map.in the future-state map.

Extend service hoursOpen at 7:30 a.m.

Receive queuing ticket and handout specific to service

requested

C/T=2 min500 cust/day2 examiners

Fill out appropriate applications and

forms

C/T=6 minSelf-service

Processed for written exam

C/T=3 min80 cust/day1 examiner

I1 to 2 people

I10 to 20people

2 min10 min 0 min 6 min

6 min 3 min

0 min

20 min

Take test on computer testing station

C/T=15 to 60 min12 computersTests offered on computer in many languages

8min

Redesign layout for service centers to create flow from beginning to end

Customer

I

3 to 5 people

Figure 2: Driver’s License Issuance:Future-State Map

Develop online practice tests and

charge for tests after one failure

Total processing time = 36.5 minutesTotal lead time = 84.5 minutes

Score test and receive passing documentation

C/T=2 min1 examiner<5% failure rate

Sign application and enter in system

C/T=1.5 min450 cust/day4 examiners<1% rejected for lack of documentation

Capture photo and receive money

C/T=1.5 min425 cust/day3 cameras4 printers3 examiners

I10 to 15 people

I3 to 5people

2 min8

min 6 min 8 min

1.5 min 1.5 min

10 min

.5 min

Take test on computer testing station

C/T=.5 min425 cust/day2 examiners5% scrap rate

Create a help desk for any customers with

special needs or problems that cannot be

resolved in a timely fashion

I3 to 5 people

I10 to 15 people

Fifo Line

Figure 2: Driver’s License Issuance:Future-State Map

Step seven: Draw the Future… cont.Step seven: Draw the Future… cont.

This future state accomplished two goals of VSM and lean This future state accomplished two goals of VSM and lean techniques. techniques.

First, the improvement initiative strategy was created with a six-month First, the improvement initiative strategy was created with a six-month time frame and the improvements that were called for were doable in time frame and the improvements that were called for were doable in this time period. this time period.

Second, the team focused on improvements that were of little or no Second, the team focused on improvements that were of little or no cost. This is a key learning point within lean systems: Avoid significant cost. This is a key learning point within lean systems: Avoid significant investment in capital until the process can’t be improved without it.investment in capital until the process can’t be improved without it.

Clearly there are many more options to further improve the future-state Clearly there are many more options to further improve the future-state map. map.

Step eight: Formalize the ImprovementStep eight: Formalize the Improvement

Establish a detailed implementation plan that includes:Establish a detailed implementation plan that includes: The area where the improvement will occur, The area where the improvement will occur, A description of the improvement, A description of the improvement, A quantifiable and measurable goal, A quantifiable and measurable goal, The people responsible for the improvementThe people responsible for the improvement Targeted start and completion dates.Targeted start and completion dates. The sequence of tasksThe sequence of tasks

Set a target that’s achievable and measurable.Set a target that’s achievable and measurable.

VSM is a powerful tool that can help an organization learn how a VSM is a powerful tool that can help an organization learn how a process looks from its customers’ perspective. process looks from its customers’ perspective.

The tool can be used to depict the activities within any business The tool can be used to depict the activities within any business process, from shop floor activities to administrative tasks in the front process, from shop floor activities to administrative tasks in the front office. office.

VSM will help people from different departments bridge gaps VSM will help people from different departments bridge gaps throughout the organization and begin to appreciate the importance of throughout the organization and begin to appreciate the importance of their roles in the overall process. their roles in the overall process.

Employees will begin to think differently about the tasks they perform Employees will begin to think differently about the tasks they perform and develop their own improvement ideas. This is when continuous and develop their own improvement ideas. This is when continuous improvement becomes a way of life.improvement becomes a way of life.

VSM CommentsVSM Comments