Waste in production

 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.
 This is: Everything that increases production
costs without adding value to what is being
produced.
 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.

Types of Waste in Production
1. Overproduction.
2. Wait Time.
3. Transportation waste.
4. Processing waste.
5. Motion/Movement waste.
6. Inventory waste.
7. Defects waste.

Overproduction
 Producing more products than is needed,
faster than needed or before they are needed is
a waste.
 Adding extra units to the quantity needed “just in
case” or building to a pre-defined lot or batch size
is also wasteful.

Consequences of Over-
Production
 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.

Overproduction 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.

Wait Time
 Wait time waste occurs when a worker cannot
proceed with the next task in a process.
 There are workers waiting and doing nothing
(wasting their time or making others waste theirs)
while others workload is excessive.

Wait Time 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.

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.

Transportation Waste
 Any material movement that does not
directly support immediate production.
 When product is transported to a place other
than the next process location or, the next
process is not located adjacent to the current
one.

Examples of Transportation
waste
 Units are parked off the production floor to gather
a “full lot” for a batch operation.
 Production Lots that are sent off to the other side
of the plant for the next process step.
 This can occur, either between operations or
within an operation where workstations are not
properly laid off.
 Containers that are too big and difficult to open or
close.
 Excess of material handling equipment. Lift-trucks
that travel empty.

Transportation waste causes
 Improper Facility Layout
 Large buffers .
 Large lot purchasing or processing.
 Poor production planning.
 Poor scheduling.
 Poor work place organization.

Processing waste
 Any unnecessary step, either production or
communication, that adds no value to a
product or service.
 Occurs when we execute an operations, and
the customer is not willing to pay for what is
being done.

Processing waste 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.

Consequences of Processing
waste
 Time spent building a feature that is irrelevant
to the customer and that the customer will not
pay for.
 Additional costs for materials used in excess.
 Lack of control because improper use of
design documents.
 Products that either, exceed the requirements
of the customer or fail to comply with them.

Motion/Movement waste
 Anymovement of people which does not
contribute to add value to the product or
service.
 Persons moving from one place to another
create a false impression of being working,
while in reality, are doing nothing. They are
costing while adding no value.

Consequences of
 Employees move from one workstation to
another, doing nothing.
 They are unnecessary trips.
 No value is added during this process.
 Include time spent looking for parts, tools,
fixtures, etc.
 Include time spent going to/froma warehouse.

Causes
 Ineffective Layouts (equipment, office and
plant).
 Lack of Visual controls.
 Poor Process Documentation.
 Poor work place organization.

Inventory waste
 Any supply (Materials or Goods) in excess of
what is required to deliver products in a Just-
In-Time manner.
 These parts will need to be
processed, moved, counted, stored, etc. Will add
to costs and can not be shipped to our customers.

Inventory waste 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.
 Suppliers that can not supply the required quantity
or quality of products in a consistent manner.

Consequences of Inventory
waste
 Large lot purchases of raw materials, only to
be stored for weeks or months.
 Very large WIP’s inventories.
 Low inventory turnover. Need of large working
capital to finance inventories.
 Damaged Products.
 Obsolete products.

Defects waste
 Costs due to sorting, repairing and/or repairing
products.
 Include cost of materials scrapped due to defects.
 Also consist in the cost of goods returned by
customers, recall campaigns.
 Recycling part of the products is also a waste.

Defects waste causes
 Too many product models.
 High inventory levels.
 Inadequate tools/equipment.
 Poor employee training.
 Poor layouts.
 Unnecessary handling.
 Poor process documentation.
 Processes that can not produce the required quantity
or quality of products in a consistent manner.
 Suppliers that can not supply the required quantity or
quality of products in a consistent manner.

Consequences of Defects
waste
 Excessive processing costs.
 Many additional non-value-added processes
or operations.
 Additional quality control inspections needed.
 Damaged relations with customers.

Waste in production

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