8 Wastes of Lean Manufacturing | 8 Lean Wastes in Lean Manufacturing

8 Wastes of Lean Manufacturing | 8 Lean Wastes in Lean Manufacturing

8 Wastes of Lean manufacturing is Transportation Waste, Inventory Waste, Motion Waste, Waiting Waste, Overproduction Waste, Over-processing Waste, Defects Waste, Skillset or Non-utilized talent.

What is Waste?

→ The waste in simple language is “Something that adds no Value.”  or 
 "Our customers would not be happy to pay for any action that we take is called waste"
→ When people think of waste in manufacturing, they usually only think about 
     all of the scrap material that gets thrown away. 
→ They often forget about all of the other actions that waste our time, our resources
     and our money...
→ Waste is anything that happens to a product that does not add value from 
     the customer’s perspective.
→ Would you want to pay for the machine operators wages while :
    ⇢ They sat idle waiting for a delivery,
    ⇢ For the rework processes that had to be undertaken because the machine was incorrectly set or
    ⇢ Even for storing your product for three months before it was delivered to the store?
→ These wastes are included within the cost of your products, either inflating the price
     you pay or reducing the profit of the company.
→ All non-value added activities are wastes.
→ 8 Lean wastes analysis is a good Lean Manufacturing Tool.

8 Wastes of Lean Manufacturing:

→ The 8 Wastes in Lean manufacturing are:
  1. Transportation
  2. Inventory
  3. Motion
  4. Waiting
  5. Overproduction
  6. Over-processing
  7. Defects
  8. Skills sets (Non-utilized talent)

➤ [1] Transportation Waste - 8 Wastes of Lean Manufacturing:

 Transportation directly impacts on your financial indicator.
→ The waste of Transportation can be a very high cost to your business, you need people to operate it and equipment such as trucks or forklifts to undertake this movement of materials.
 Transportation is the movement of materials from one location to another, this is a waste because it does not add any value to the product.
 Your customer is not willing to pay for that.
 Transportation adds no value to the product and you are paying people to move material from one location to another so this is waste in lean approach.

Transportation Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Transportation waste:

 Sending unsold products from the store to the warehouse back.
 Ordering parts or products from distant suppliers when closer options are available.
 Moving parts from one station to another.
 Moving equipment from one construction site to another.

➤ [2] Inventory Waste:

 Every piece of product tied up in raw material, work in progress or finished goods has a cost and until it is actually sold that cost is yours.
 In addition to the pure cost of your inventory, it adds many other costs.
 Inventory feeds many other wastes.
 Inventory has to be stored, it needs space, it needs packaging and it has to be transported around.
 It has the chance of being damaged during transport and becoming obsolete.

Inventory Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Inventory waste:

 Too much Raw material inventory.
 Too much work in progress (WIP) inventory.
 Too much Finish Goods (FG) inventory.
 Inventory of extra spares and machines in ideal condition.
 All inventory should be optimum and minimum.

➤ [3] Motion Waste in 8 Wastes of Lean Manufacturing:

 Motion is the third waste in Lean Manufacturing.
 Excessive motion of either people or a machine is a waste.
 Unnecessary Movements of man or machine which do not add any value in the product is motion waste. 
 Excessive machine movements from the machine start point to actual work start point.
 All of these wasteful motions cost you time (money) and cause stress on your employees and machines.
Motion Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Motion Waste

 Software that requires 10 clicks to start.
 Workers searching for missing tools or instruments.
 Excessive travel between workstations.

➤ [4] Waiting Waste:

 Waiting is the fourth waste in Lean Manufacturing and it costs you money.
 In addition a Waiting for a delivery from a supplier or an engineer to come and fix a machine?
 We have to spend a huge amount of waiting time for things in our working environment.
People and process often must wait because the next step in the process isn’t ready for them yet.
 They are waiting because they don’t have the inputs necessary to act.

Waiting Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Waiting Waste:

 Emergency room patients waiting for test results in a hospital.
 Farmer is waiting for water for the crop.
 Airplanes waiting for a gate to open up.

➤ [5] Over Production Waste in 8 Wastes of Lean Manufacturing:

 Over Production is the fifth waste in Lean Manufacturing and it costs you money.
 In addition, an Overproduction what the customer does not want now is a waste.
 This is usually because of working with oversize batches, long lead times, poor supplier relations and a host of other reasons.
 Overproduction leads to high levels of inventory which mask many of the problems within your organization.
 The aim should be to make only what is required when it is required by the customer, the philosophy of Just in Time (JIT) or Continuous Flow (Single Piece Flow) however many companies work on the principle of Just in Case! (JIC).
Over Production Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Over-Production Waste:

 Production is more than customer demand.
 Huge meals in restaurants.
 Hospitals with more beds than the community needs.
 Overstaffed retail stores

➤ [6] Over Processing Waste:

 Over Processing is the sixth waste in Lean Manufacturing and it costs you money.
 In addition, Over-processing is doing more than the customer wants and give money for the product or service.
 The waste of Over-processing is where we use inappropriate techniques, oversize equipment, working to tolerances that are too tight, perform processes that are not required by the customer and so on.
 All of these things cost us time and money.

Over Processing Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Over Processing Waste:

 If Microsoft Excel is enough for us and we go for mini-tab for calculation.
 Another example: X-ray is sufficient and we go for MRI.
 If lathe machine is sufficient for operation and we are doing the operation with CNC machine.
 Complex purchasing processes with multiple approval levels.
 One of the best example for over processing is before sending mail to the manager we read twice or thrice.

➤ [7] Defect Waste in 8 Wastes of Lean Manufacturing:

 The Defect is the seventh waste in Lean Manufacturing and it costs you money.
 Defects hide many other problems and wastes.
 Quality errors that cause defects invariably cost you far more than you expect.
 Every defective item requires rework or replacement, it wastes resources and materials, it can lead to lost customers.
 We have to work on defect prevention instead of defect detection.
 Implementation of Poka-Yoke systems and automation can help to prevent defects from occurring.
 We can use Jidoka/Automation for defect preventing purpose.
 We also implement standard operations procedures (SOP) and training to ensure that the correct methods are undertaken and standards achieved.

Defect Waste - 8 Wastes of Lean Manufacturing

➥ Examples of Defect Waste:

 Software with bugs is a defect that has to be re-coded.
 Misdiagnoses in healthcare that lead to unnecessary tests or treatment.
 Products that are shipped to the wrong address is also a defect.
 Manufactured items that don’t meet the customer’s specifications is a defect.

➤ [8] Skill-Set (non-utilized talent) Waste:

 Skill-set or non-utilized talent is the eighth waste in Lean Manufacturing and it costs you money.
→ Not fully utilized people represents the waste of talent present in many organizations.
 Because operators are close to their processes daily, they can often recognize problems or opportunities that staff or superiors just don’t see, but the workers may never be asked for their input.
 They may also have outside talents that aren’t formally part of their assigned jobs but could be of use.
 The recommendation? Value people for their brains, not just their brawn.

➥ Examples of Skill-Set (non-utilized talent) waste:

 Intentionally we are not including any competent employee or any department or section is also an example of non-utilized talent waste.
→ If we do not give our worker any chance for process improvement or any suggestion about the improvement is also comes under skillset waste.

Benefit of eliminating 8 Wastes from our process:

→ It Improves efficiency and effectiveness
→ Eliminating 8 Wastes increase the productivity of production processes
→ It will increase the performance of plant indicator OEE (Overall Equipment Effectiveness)
→ It creates a safer working environment for all employee.
→ Reduce downtime