This course was created by Gemba Academy, a leading provider of lean and Six Sigma training. We are pleased to offer this training in our library.
Skill Level Beginner
(techno music) - Hi there, my name is Jennifer Scott, and I'd like to welcome you to this course that's focused on dealing with the seven deadly wastes. Now, in case you're wondering where Ron is, don't worry; he's still around. We've just decided to change things up a bit with a different instructor for this course, which is why you see me. Now, in the first module, we're going to get things started with an overview of the topic, where we'll learn what the seven wastes are, allowing us to then build on this knowledge in the other modules. Our focus will be finding ways of eliminating all forms of waste. To summarize, by the end of this module, you'll know exactly what it means for an activity to be value added; essential non-value added; or waste. And you'll also be able to identify what are commonly referred to as the seven deadly wastes. Now, throughout this course, we'll be visiting RAM Technologies, a custom foam fabricator located in Washington. While inside the factory, we'll do our best to demonstrate what each of the seven wastes look like, while also showing what things look like when these wastes are eliminated. Now, let's go ahead and get started by discussing the various elements of work. And when I say elements, I mean that any work or activity we do can be classified into one of the three categories. First, we have what we call value added work. Now, for something to be called value added, three things must exist. The customer must be willing to pay for it. The thing must change in some way. In other words, we like to say when value added work is done, the form, fit, or function of a thing is changed, and finally, the work must be done right the first time. Now, if any of these three points are missing, the step or process cannot be said to be value added. And while value added activities are what we prefer to do most of the time, we won't spend much time or effort focusing on value added steps as it relates to reducing waste, but I will explain why this is later in the module. Next, essential non-value added work is work that adds no value, but must be done to meet the customer's needs under today's conditions. This is a minor area of focus for lean thinkers since it's harder to improve in this area, and there's less of this type of work than the third and final category, which is waste. Waste, which is commonly referred to as Muda, adds no value and customers are not willing to pay for it. Now, the best way to understand the impact of waste is to look at work from the customer's viewpoint, while asking yourself, would I want to pay for this if I were the customer? Even some things that you would be willing to pay for may be done at a cost that's too high or with too many non-essential steps. It could be said that eliminating waste is like defragging a computer. When you defragment a computer, you rearrange the data so that you can open up space. When data is fragmented, there are useless bits that are filling up memory, much like the useless amounts of waste taking up our space and time within our processes. By identifying where the value added portions are and moving or removing the non-value added bits, you improve performance of your computer. In the same way, taking waste out of your process improves its performance by radically reducing the time it takes to fulfill a customer request. Now, as we discussed earlier, we'd prefer to spend most of our time doing value added work. Well, unfortunately, when we look at the total lead-time through a value stream, we typically find a massive amount of Muda, or waste is stealing resources and time. Another unfortunate activity we often see companies doing is attempting to reduce the overall lead-time by making the value added processes more efficient. For example, companies work to save a few seconds or minutes of machine cycle time in order to reduce the overall lead time. And while this isn't necessarily bad, there is far more opportunity in reducing the waste in the process first, before worrying about improving the value added steps. With all of this said, in order to be able to attack this waste, we must be able to identify it. So, let's spend the remainder of this module by discussing what we refer to as the seven deadly wastes. The first waste is defects, which is simply work that is less than the level the customer, both internal and external, has requested. Some examples of defects in manufacturing environments are rework, scrap, missing parts, wrong parts, and yield lost at startup. And in office or service-based environments, defects may consist of things like incomplete or incorrectly completed documents, and misspelled words on videos. Not that we've ever done this. Now, as a point of reference, the waste of defects is also sometimes referred to as the waste of correction. In this example, we see our operator, whose name is Isaac, is struggling to understand his work instructions, and as such, scrap parts have resulted. Next, we come to the waste of inventory, which is any work or material on hand, other than what's needed right now to satisfy customer demand. Some examples of inventory waste are excess raw materials, work in process, finished goods, supplies, and spare parts. In an upcoming module, we'll spend more time exploring the different types of inventory we might have on hand, such as cycle stock, buffer stock, and safety stock. In this example, we see Isaac surrounded by piles of inventory, making it hard for him to even know what to grab, and, believe it or not, there are examples of inventory waste in non-manufacturing environments, including basic things like having too many office supplies such as old inkjet printer cartridges like our friends at FedEx office discovered during the filming of our Five S course. Things like excess office supplies take up valuable space and can even create things like trip hazards. Additionally, one could argue those 1,200 emails you filed away for the past 12 years are wasted inventory, since you likely don't even know what it is you've saved. Okay, next we have the waste of processing, sometimes called overprocessing. We experience this waste when something's designed in such a way that uses more resources, such as space, energy, or people, than is truly required. Sort of like using a sledge hammer to smash a peanut. The waste of overprocessing is definitely the hardest to understand and learn to see, since the most common root causes are a lack of understanding our customer needs. Some examples of processing waste are machines that are slower or faster than needed, equipment that uses more energy than needed, redundant work such as copying information, drilling a hole instead of punching it, and cleaning something multiple times. Here, we see Isaac clearly measuring each piece of foam, when, as it turns out, these pieces have already been cut to size and don't require such meticulous and time consuming verification. Next, anytime there's idle time created, because materials, machines, or information are not ready for people, we have the waste of waiting. This waste is usually less visible than the others, because it's often replaced by overproduction or busy work. So, in fact, when waiting becomes visible, it's important to keep people from working just to keep busy, since this busy work often does more harm than good. Some examples of waiting are waiting for materials, an accountant waiting for information to close the monthly books, warehouse employees waiting on a forklift, or a nurse waiting on important supplies to arrive. In this scene, it seems that Isaac has run out of work, and is obviously looking for something to do, so he resorts to reading his newspaper and text messaging his friends. Okay, any movement of people that doesn't add value to the product creates the waste of motion. By nature, most motion is in fact wasted. Consequently, by closely studying motion, and the time it takes to do a task, it's often possible to improve manual operation times by 30 to 50 percent. In addition, eliminating motion waste is a key part of reducing changeover times. Some examples of motion are walking, reaching, searching, lifting, choosing, arranging, and turning. Here, we see Isaac taking several extra steps in order to reach his air nozzle. He's also wasting motion as he has to take a step to his right to inspect and place the finished part on the table. All right, the next waste, which is often confused with the waste of motion, is transportation, which is the movement of materials that adds no value to the product. Another way of saying it is transportation is the movement of material using carts, trucks, forklifts, or simply your arms and legs. It should be said that while moving product on a conveyor is not as bad as moving material from one disconnected process to another, it's still conveyance, a type of transportation waste, since conveyors are inflexible and require space and energy. Now, some examples of transportation waste are moving finished goods to storage, moving work in-process to the next step, moving between functional areas, moving parts to the line, having to walk paper around the office for signatures, and moving items to quality assurance. Or, as we see here, Isaac is forced to leave his work station in order to transport some shrink wrap from across the plant to his work station, which obviously takes him away from adding value to the product he's working on. And last, but most certainly not least, we come to what lean thinkers commonly refer to as the mother of all waste, overproduction, which occurs when we make more product than the customer needs right now. The reason we say overproduction is the mother of all waste is because it often leads to all the other waste in one form or another. So, for example, overproduction multiplies the other wastes, such as inventory, and covers up problems such as waiting or variability in demand, and it makes it harder to understand our true capacity. Some examples of overproduction are making extra parts to cover for scrap, forecast production, economic order quantity lot sizes, piece rate production, and production done simply to maximize utilization or absorption. In this final scene, Isaac's internal customer only needs one box of work in process, but since he's fallen into a bit of a groove, Isaac decides to produce a few more parts even though they don't fit inside the box, which, obviously, isn't optimal. At Gemba Academy, we've traditionally practiced the seven deadly wastes. However, we've added an additional module to our course. In order to shine light onto the extremely important human factor, some lean thinkers have begun to identify, as an eighth waste, which is directly related to how effectively people are being utilized, which we refer to as the waste of skills. In future modules, we'll visit with Isaac again, as we work to eliminate or at least improve each of the wasteful situations we've witnessed in this overview. But in our next module, we're going to a simple, extremely effective technique for identifying waste in and/or around our work areas. And as it turns out, this particular technique we'll be teaching was popularized many years ago by Taiichi Ohno, on of the chief architects of the Toyota production system. So, we'll speak to you soon.