TYPES OF WASTE TARGETED BY LEAN METHODS
Lean is a process to identify and eliminate waste within a process. When looking for waste in an organization, Lean classifies activities as either Value Added or non-Value added. Non-Value added activities are considered waste in any process. The non-Value added waste must then be evaluated to determine if it is required or if it can be eliminated. When initially analyzed, most processes will show up to 80+% wasted activities as measured by Lean. It should not be expected or even practical to think all waste can be eliminated. Significant reductions though optimize a process and reduce the time associated within a process thus saving an organization time, resources and capital.
The table below shows the seven basic classifications of waste and examples of each by both manufacturing and service sectors.
Manufacturing Sector Waste
Service Sector Waste
|Defects||Scrap, rework, replacement production, inspection||Order entry, design, or engineering errors|
|Waiting||Stock-outs, lot processing delays, equipment downtime, capacity bottlenecks||System downtime, response time, approvals|
|Overproduction||Manufacturing items for which there are no orders||Printing paperwork, purchasing items before they are needed; processing paperwork before the next person is ready for it|
|Transportation||Transporting work-in-process (WIP) long distances, trucking to and from an off-site storage facility||Multiple sites outside of walking distance, Off-site training|
|Inventory||Excess raw material, WIP, or finished goods||Office supplies, sales literature, and reports|
|Complexity||More parts, process steps, or time than necessary to meet customer needs||Re-entry of data, extra copies, excessive reporting, etc.|
|Unused creativity||Lost time, ideas, skills, improvements, and suggestions from employees||Limited tools or authority available to employees to carry-out basic tasks|