7 Wastes

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Value Stream Analysis

Kaizen Training
What you can Expect
• “Value Stream Analysis Kaizen Training” contains what you need to
know to get the job done, not everything you need to know to be an
expert.
• Part 1
• Lean concepts and terminology
• Part 2
• The process by which we create future states
Lean Thinking
• Value in the Eyes of the Customer
• The Value Stream
• Flow
• Pull of the Customer
• Perfection
Value Added
• Value is added any time we physically change our product
towards what the customer is buying
• If we are not adding value, we are adding cost or waste
• Lean Manufacturing drives the systematic elimination of
waste

Value-Added Time : Minutes


Time in Plant : Weeks
ORDER CASH

KEY QUESTION – Are my customers willing to pay for this ????


Value Added vs. Non-Value Added
Value added
LEAN = ELIMINATING THE 7 WASTES

5% • Overproduction
• Waiting
• Transportation
• Non-value added
processing
• Excess inventory
• Excess motion
Non-value added
• Defects

Typically 95% of Total Lead Time is Non-


Value Added!!!
WAITING OVERPRODUCTION
TRANSPORTATION

PROCESSING
7
Wastes DEFECTS

MOTION INVENTORY
7 Basic Types of Waste (Toyota)
• Overproduction – producing more than what is demanded
by the customer
• Inventory – Storing more than the absolute minimum
needed
• Transportation – the unnecessary movement of materials
• Waiting – waiting for the next process step
• Excess processing – due to poor tool or product design
• Wasted motion – unnecessary reaching, walking, looking for
parts, tools, prints, etc
• Defects – scrap and rework
What is Flow ?
• Producing and moving one item at a time (or a small and consistent
batch of items) through a sequence of process steps as continuously
as possible, with each step making just what is requested by the next
step.

TRADITIONAL CONTINUOUS FLOW

Lean Lexicon Version 1 p9


Continuous Flow – More Efficient & Faster

Traditional Batch Layout Continuous Flow Layout


Supermarket Pull System
“Production” KANBAN “Withdrawal” KANBAN

Supplying
process Customer
process

A B
product product

Mike Rother
Learning to See
SUPERMARKET
CUSTOMER PROCESS goes to supermarket and withdraws what it
needs when it needs it.
SUPPLYING PROCESS produces to replenish what was withdrawn.
PURPOSE: Controls production at supplying process without trying to
schedule. Controls production between flows.
Takt Time
Takt time paces production to the pace of customer
requirements.
Total daily operating time
Takt Time =
Total daily customer requirement

Operating time = 1 shift x 8 hours – (2) 20-min.


breaks = 440 mins/day
Customer 880 units/month
= = 44 units/day
Requirement 20 days/month
440 mins/day
Takt time = = 10 mins/unit
44 units/day

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