Dealing with the 8 DEADLY WASTES

that impact your profit

Webinar outcomesThrough this webinar you will:

Understand the learning path for a quality management professional

Learn to identify wastes or non-value-added activities that impact your profit

Know the nature of waste in your business processes

Reduce the 8 main type of wastes in order to be more efficient in serving the end customer

Understand that eliminating waste is the foundation of lean thinking

Speaker: Luciana Paulise1. Business consultant and founder of Biztorming

Training & Consulting

2. MBA from CEMA University, a top-ranked institution at Buenos Aires, Argentina

3. Quality Engineer certified by the American Society of Quality (ASQ)

4. Participated as an examiner for the National Quality Award in Argentina and the Team Excellence Award

5. Influential Voice for the ASQ (US). Speaker and Author

6. Columnist for Infobae (Argentina), Destino Negocio (Spain) and Somos Pymes (Argentina)

7. In 2014 received a grant from the Deming Institute to apply Deming quality management system on small business in development countries

8. Located in Buenos Aires Argentina

Business consultant and founder of Biztorming Training & Consulting

Webinar Agenda• Introduction to Lean• Introduction to Waste• The 8 Wastes• Next Steps• Wrap up Session

Introduction to Lean

What is Lean?Lean methodologies look forward to reducing eight wastes or non-value-added activities in order to be more efficient in serving the end customer.

Elimination or reduction of them can result in savings for your business by more than 50%.

Steps of Lean ThinkingIdentify Value

from the customer’s perspective

Map the Value Stream and get

rid of waste

Make the value creating steps

Flow continuously

Let customers Pull the product

Seek Perfection

- what are the true value adding activities?- make waste visible (5S)- use standard operating procedures (SOPs)- make performance visible (Visual Factory)

- eliminate other wastes (8 Wastes) - minimize non-value adding

steps (COPQ)

- use continuous improvement (Kaizen) to get value to flow

faster and to completely eliminate Muda

- no one produces a product until the customer asks for it

- throw out forecasting

- eliminate batch-and-queue- everything works or nothing

works- ignore traditional boundaries

Lean tools

Seek Perfection

Identify the value stream and Eliminate Waste

Standardize and visualize customer value

Create Flow

Allow customers to Pull

Introduction to Waste

Waste Definition Any activity that consumes resources but creates no value.

Waste in our work place (and elsewhere) becomes so familiar that we fail to see it for what it is

“We look at it, but we do not see it.”Lao-Tzu, sixth century BC

Inspect

Rework

Scrap

Process

Hidden Factory

How much inspection, rework and

scrap?

Product to

customerHigh yield

High Yield Does Not Always Equal Low COPQ

Visible Costs are only the Tip of the Iceberg!

ScrapRework and sorting

Rejects Warranty claimsMaintenance and service

Additional labor hoursMaterials Obsolescence

Quality engineering and administration

Inspection/test (materials, equipment, labor)

Expediting

Cost to customer

Excess inventory

Longer cycle timesQuality auditsSupplier control

Lost customer loyaltyImprovement program costs

Process control

Opportunity cost if salesgreater than plant capacity

Cost to supply chain

Accounting does not

capture all costs!

Required Waste, 30%

Value Added

Work, 20%

Pure Waste, 50%

Typical Waste DistributionBased on: The Quality Secret, Conway

The 8 Wastes

Eight Wastes

Original 7 wastes from Toyota Production System

New!!

D •Defects

O •Overproduc tion

W •Waiting

N •Non-v alue added proces sing

T •Tr ansportation

I •Inventory

M •Motion Waste

E •Employ ees unutil ized sk ills

Quality

Defects

Making defective products that have to be reworked, repaired or scrapped

PeopleOver-processing

Performing activities that add no value to the product or service from the customer’s perspective

PeopleWaiting

Idle time before next processing step

People

Motion Waste

Movement of employees and equipment that does not add value to product or service

People

Employee unutilized skills

Not using people’s abilities, skills, experience to fullest extent

Materials

Transportation

Movement of material or data from one place to another

Materials

Inventory

MaterialsOverproduction

Producing materials or completing services that aren’t needed now

The 8 wastes + Tools

Materials

Over-producti

on

Just in time

Work Balancing

People

Motion

Workplace management

SOP’s

Quality

DefectsErrors prevention

Visual management

Next steps

Exercise: Identifying WasteIndividual exerciseTime Required: 15 minutes

Instructions:

1. Using your process map, identify examples of each of the 8 Wastes.

2. Categorize the three top wastes that exist.

3. What prevents you/your business unit from addressing these wastes?

Identify 1 example of each

of the waste types

Possible Cause Proposed ActionHow will we

know we were successful?

Overproduction

Inventory

Waiting

Defects

Transportation

Motion

Over-Processing

Employee unutilized skills

Exercise: Identifying Waste

Any Questions?

Luciana PauliseCEO Biztorming