VALUE & WASTE

AGILITY
MANUFACTURING KNOWLEDGE
& TECHNOLOGY TRANSFER
 INTRODUCTION

“Agile Manufacturing increases the ability of the business to

handle uncertainty and to design, introduce & manufacture
innovative and bespoke products”

In an increasingly competitive market, costs and delivery and increasing

businesses need to meet the ever quality that Lean provides. Rather
increasing demands from their products have to be more targeted to
customers for improved performance customer requirements, providing a
in Quality, Cost and Delivery and must unique and bespoke service or
seek to continuously improve in all product. To realise this companies
areas of their business to meet these need to continue to remove waste in
demands. order to remain competitive and also
maximise the value proposition,
Since the arrival of Nissan to
delivering increased variation and
Sunderland in 1986, which was closely
innovation.
followed by Toyota and Honda to the
UK, Industry has quickly adopted the Agile manufacturing enables
process focused approach (termed organisations to be better equipped to
Lean Manufacturing) developed in deal with the increasing uncertainty
Japan with stunning results. Lean that the future holds and to ensure
manufacturing has now spread beyond future profitability. As such, Agility
the scope of the automotive industry has been created to help companies
to all sectors of the manufacturing implement such systems, through
economy and striking results have hands on implementation of state of
similarly been obtained. If you have the art business strategies, design
still yet to begin your Lean journey, we innovation and manufacturing
strongly encourage you to do so, techniques. Agility is part of the DTI’s
before your competitors. Manufacturing Advisory Service and
can deploy resources to meet
A new challenge, in the form of global
changing company priorities and
competitiveness, is forcing us to
realise business opportunities.
develop new strategies to ensure a
profitable future for our companies. It This booklet is a guide to the concepts
is no longer sufficient to rely on the of value and waste.
competitive advantage of decreasing
 VALUE

or not a step or process creates value

Most Quality programs or techniques
based upon the customer’s
concentrate upon the “negative”
requirements. Each of the modern
aspects of quality, i.e. fixing or
manufacturing philosophies (not just
avoiding problems. The term quality
Lean) main requirements is to specify
can also have positive connotations
value from the point of view of the
and in this context can be taken to
customer. Beyond the scope of
mean what it is the customer values in
“changing shape”, value can become
your product and is willing to pay for.
synonymous with quality in all its
A simple but often effective short term
aspects.
description for value can be deemed
to be occurring on the shop floor, Quality as a word has a huge spread of
when the product changes shape. meaning, from defect and scrap rates
on the shop floor to style and
Unfortunately this definition lacks any
elegance. The following details a
long term promise, though it is useful
classification of quality as a strategy
when starting a Lean transformation in
as originally defined by the Quality
order to get momentum. Further, the
guru David Garvin. This should
term value is often confused with
provide an excellent framework to
costs; particularly when teamed with
help specify the value creation that
“adding”, i.e. “value adding” is often
customers identify in your product or
misinterpreted as “cost adding”. It can
service.
be more precise to use “value creation”
Quality can be defined as:
as this more precisely states whether

Transcendent Quality is something intangible, timeless and enduring an

essence that rises above changing styles and fashions.
Product based As a precise measurable higher quality is achieved through a
higher quantity of ingredient or attribute.
User based As fitness for use, each consumer has a specific set of needs
and products which most reflect those needs are of higher
quality.
Manufacturing based Conformance to design requirements is vital to
manufacturing quality; hence a well made Mercedes is of
high quality as is a well made Lada!
Value based Quality is defined in terms of performance or conformance
in combination with an acceptable price or life time cost.
 PERFORMANCE

upon their own specific areas of

Competing products and brands can
interest. Cosmetics are advertised in
usually be ranked objectively on at
many ways in achieving superior
least one performance measure, as the
performance from staying power to
performance relates to the primary
colour and from smudge free to
operating characteristic of the
kindness to skin.
product. This may include for example
the flatness of a television or its The link between quality and
picture quality in terms of reception, performance can also be clouded by
clarity and sharpness. For a car this different performance classes, since a
could include top speed, zero to sixty 60watt light bulb is not considered to
times, comfort or handling. be of higher quality than a 40 watt
Performance therefore combines bulb. A 9watt low energy bulb, with an
elements of both product and user equivalent 40 watt output, may be
based definitions of quality. seen as being of higher quality over a
standard filament bulb as (lower)
Such rankings can become difficult to
power consumption is a superior
attain in an overall sense as the
performing product.
performance of two products may in
one way be the same but be achieved Usability may be headed within
in different manners. Two forklifts for performance since:
example may have different maximum
♦ It can be a very narrow definition
loads, say the first is limited to 500kg
that supports some other quality,
but the second forklift can lift a ton,
such as performance and
however the first is twice as fast as the
delivered through additional
second in operation. Both forklifts
features.
have the same capacity but their
capabilities differ. Which is of the ♦ As a broad and general quality of
higher quality in terms of superior use where the products
performance is dependent upon the effectiveness and efficiency, which
situation. can be objectively assessed
provide the user with increased
A consumer typically has a wide range
satisfaction within a given context
of needs and wants which directly
of use.
affect the quality of a product and
each will equate high quality based
 FEATURES

the feature dimension of quality

Features represent the “bells &
outlined here, or at least the area
whistles” or extras that supplement
between.
the main performance functions of the
product. Often the line separating It is important to note that features
features from performance can move from being delighters to
characteristics is difficult to draw as it performance to expected
is entirely dependent upon the degree characteristics over time. Novelty in
of value to the user. some cases may be a better
description for features.
The Kano model shown below actually
helps draw these lines as three Taking each of the characteristics of a
separate curves of user delight. The product and plotting them on a Kano
vertical axis determines how “happy” a model can yield an excellent insight
consumer is with the features and into the competitive advantage that
functions of a product. The horizontal product has in terms of performance
axis is a measure of implementation of and features relative to the
the feature or function, from not competition.
implemented on the left to fully
implemented on the right. The model
consists of three curves, which are as
follows

ƒ Expected - Such features and

functions are expected to such an
extent that the consumer may not
even state them as a requirement;
their simple absence will make the
consumer unhappy

ƒ Performance – Effectively the

previous dimension where the more
the better

ƒ Delighter – Inclusion of such

features delights the consumer as
they are seen as an added extra, as
such, delighters are close to being
 RELIABILITY

Reliability can be used as a perform its intended function for the

devastating competitive weapon, required duration within a given
providing market conditions are right, environment. This includes designing
i.e. competing products have poor in the ability to maintain, test, and
reliability characteristics. The rise and support the product throughout its
dominance of Japanese goods is a case total life cycle. Reliability is best
in point, where the reliability and described as product performance
conformance of their products has over time. This is accomplished
been emphasised, whilst other quality concurrently with other design
dimensions such as durability in terms disciplines by contributing to the
of corrosion in cars and aesthetics has selection of the system architecture,
been downplayed to incredible global materials, processes, and components.
dominance. It is a critical ingredient of all designs
created within all industries. It is far
Reliability is a design engineering better to explicitly consider reliability
discipline which applies scientific than to ignore it and hope for the
knowledge to assure a product will best!

The skills and knowledge required to achieve reliable products include:

♦ Statistical analysis,
♦ Product reliability modelling for selection of redundancy vs. component
reliability,
♦ Reliability predictions,
♦ Failure modes and effects analysis,
♦ Reliability test planning and testing -- product stress screening/ accelerated
life/demonstration,
♦ Maintainability analysis,
♦ Product effectiveness.
 CONFORMANCE

Conformance determines how close a

♦ The performance standard must be
products design and operating
Zero Defects, not 'that's close enough'.
characteristics meets pre-established
standards of which two distinct ♦ The measurement of quality is the
approaches can be viewed Price of Non-conformance, not
♦ Conformance literally means the indices.
ability to meet the defined design The second definition of conformance
specifications stems from a Japanese Quality Guru
♦ Of increasing (£) impact, the further Genichi Taguchi and is defined as 'loss
from the operator/cell/factory and imparted by the product to society
closer to the customer the quality from the time the product is shipped'.
problem is detected. This loss includes not only the loss to
Philip Crosby, one of the established the company through costs of
Quality Gurus defines Quality reworking or scrapping, maintenance
according to the first conformance costs, downtime due to equipment
description. Crosby therefore defines failure and warranty claims, but also
quality as conformance to the costs to the customer through poor
requirements which the company itself product performance and reliability,
has established for its products based leading to further losses to the
directly on its customers' needs. His manufacturer as his market share falls.
goal is to give all staff the training and Taguchi associates a simple quadratic
the tools of quality improvement. This loss function with deviations from this
is aided by viewing all work as a target.
process or series of actions conducted This loss function shows that a
to produce a desired result. Crosby's reduction in variability about the
Quality Improvement Process is based target leads to a decrease in loss and a
upon the “Four Absolutes of Quality subsequent increase in quality. The
Management”: loss function may be used to evaluate
♦ Quality is defined as conformance design decisions on a financial basis
to requirements, not as 'goodness' nor to decide whether additional costs in
'elegance'. production will actually prove to be
worthwhile in the market place.
♦ The system for causing quality is
prevention, not appraisal.
 DURABILITY

Durability is a measure of a products can be overcome through guarantee

life before it deteriorates. In its periods; however it is worth noting
simplest form after so many hours of that poor field repair strongly affects
use the product simply breaks and is durability in this respect.
discarded, the item cannot be
This also shows that durability and
repaired, a replacement must be
reliability are closely linked
purchased and thus superior quality
dimensions of quality in customer’s
directly relates to durability. Where
perceptions; a frequently failing
repair is possible, the importance of
product is more likely to be scrapped,
durability becomes clouded as
than repaired and any differentiation
extending the product life through
based upon durability will be held
repair of the deteriorated component
strongly in favour of the competition.
is a consideration regarding changing
tastes in fashion, current equipment Maintenance also has a strong impact
capabilities or features in comparison upon the durability of a product, if for
to a new model as well as prevailing example worn though functional
economics, thus product life time may components can be replaced prior to
be extended due to economic field failure occurring.
circumstances or even legislation. This
 SERVICE

♦ Reliability, Is the service on time

Service reflects many aspects of how
and to specification
an organisation interacts with a
customer. Whilst customers value the ♦ Responsiveness, The ability to
reliability and durability of a product, respond to need and of the
when it ceases to function the service company to deliver to individual
level that the customer receives is requirements
paramount. Is repair affected quickly
♦ Assurance, Do staff instil
and are dealings with repair staff
confidence and trust in their
punctual and effective?
abilities
Any point where the customer comes
♦ Empathy, Can staff understand
into contact with the organisation is
the needs and concerns of the
an opportunity for them to value the
customer and put them at ease,
service the company provides.
do they have the capability and
Unfortunately customers are more
freedom to action a solution
likely to remember and tell their
friends and companions of a Some service attributes can be
dissatisfactory level of service received measured directly, where others are
from staff. open to interpretation. Where
individual subjective opinion
Customers determine their satisfaction
determines the level of satisfaction, it
with regard the quality of service
is difficult to measure a level of
received through five dimensions of
failure. Other aspects of service can be
service quality, as defined by Zeithaml,
more objectively measured, such as
Parasuramann & Berry in a technique
the number of telephone rings before
commonly known as SERVQUAL. This
answer, the mean time to repair or
technique determines and closes the
delivering follow up calls or actions as
gaps between expectations in service
promised.
and the reality of delivery. The five
dimensions are: Customer retention is a key service
delivery and as a general rule of
♦ Tangibles, The physical
thumb; it costs five times as much to
appearance of personnel,
acquire a new customer than to retain
equipment and facilities
an existing one.
 AESTHETICS &
ERGONOMICS

“After fit and function comes form”

Aesthetics relates to the appearance own right being an important
and impression of a product in how it performance quality that customer’s
looks, feels, sounds, tastes and/or value. Ergonomics crosses many of the
smells. It can be subjective, a matter other value bondaries. A product such
of personnel judgement and a as an aircraft cannot be considered
reflection of individual tastes. This is reliable if it is not physically possible
not to say how ever that correlations to maintain test and support the
between quality and the senses do not product. It is no use having many
exist across wide sections of features on a product such as a car,
customers. For example the smell of when accessing or using those
leather seats in a new car or the smell features is difficult, time consuming,
of a new book confusing or unsafe. Performance is of
no value if it is unusable.
Ergonomics may be an issue for some
products and not others, but for many
products may justify a definition in its
 PERCEIVED QUALITY

Perceived quality relates to how good positively reinforce the other qualities
the customer thinks the product is, that customer’s value. Thus if a
with a basis upon past history with the competitors product is by margin
company, the branding and marketing superior in performance or features
of the product or the country of for example, a competing product can
manufacture all have an impact on be perceived as being superior in
perceived quality. performance or features either
through reputation,
Reputation is however the key
marketing/branding or even
contributor to customer’s perceptions
aesthetics, if the superior ability is
of perceived quality and stems from
difficult for a consumer to quantify or
the simple adage that today’s product
judge. Obviously the reverse is also
(which may be new to the market,
true and although a company may
where insufficient hard data is
apply significant effort in developing a
available to form true judgements) has
superior product, the perception by
inferences drawn upon its capability
customers of the value of the product
based upon the quality & value of the
may be lacking due to previous
companies other established products.
experiences.
Perceived Quality should not be
underestimated, as it can be used to
 VALUE ENHANCEMENT

these groups different values will be

Whilst waste can be tackled directly for
valued and even within highly
elimination it is more profitable to
desirable customers their may be
prevent it in the first place. This is
further differentiation, indicating a
discussed in the next section. Another
necessity for product families. Thus a
alternative is to directly target the
complexity exists in enhancing value
value enhancing elements of a product
across these diverse customer groups.
or service. This is more the case in the
service elements of a business and in From the perspective of future value,
products that have a limited shelf life this determines what tomorrow’s
due to fashion or technological issues; customer is willing to pay for, which
gadgets. the current market will not support.
The Kano model shown previously is
By thinking of value enhancement, we
relevant in this respect as, product &
tie together the concepts of value and
service performance and features will
waste and bring the customer and
readily move from delighter to
market conditions centre stage, thus:
performance to must have categories
Present Value: Current customers and in time.
what they are willing to pay for is a
Value is a “moment of truth”
reasonable method of determining
experience, the totality of all the
value within a product or service
dimensions of quality and their
Future Value: What tomorrow’s incumbent price and costs to the
customer desires is quite another customer.
issue and requires separate
consideration
♦ The right product
In both these conditions there are
obviously those customers that we ♦ At the right time & place
prefer, customers that are not worth
♦ At the right price
serving and a range between. Within
 WASTE

“Generally 5% of a company’s effort is utilised in creating

value within a product, the 95% remainder is incurred as cost
through the 7 wastes”

of increasing competitiveness of your

Waste is the use of resources over and
organisation.
above what is actually required to
produce the product as defined by the The ideas of operational wastes are
customer. If the customer does not useful because they allow a
need it or will not pay for it then it is categorisation of the problems,
waste, this includes material, focussing attention in the appropriate
machines and labour. areas once they have been identified.
There are many tools and techniques
If you were to record all of the non-
which can be applied to many areas of
value added activities carried out in a
operations in order to tackle any one
typical manufacturing company do not
or more of these wastes.
be surprised to find out that 95% of all
activities carried out are non-value The original wastes defined by Taichi
adding. The elimination of waste, not Ohno are given below.
just reducing it, is a vital component
.

Defects Transport

Unnecessary Overproduction
Inventory

Inappropriate Unnecessary
Processing Motions

Waiting
 UNNECESSARY INVENTORY

“Reducing Inventory is core to optimum performance; reducing

inventory releases cash and floor space that can be re-invested
profitably.”

Inventory at some level needs to be held, Work In Progress (WIP) is also included
but unnecessary quantities tie up monies within the “Unnecessary Inventory”
that could be invested profitably. waste, WIP on the factory floor takes up
Inventories tie up cash, they need to be space, is a quality time bomb and when
managed and insured. Inventories also defects occur, it is likely the entire batch
utilise floor space, which could be is duff. By reducing WIP all the
utilised profitably with the manufacture subsequent wastes are reduced. A goal
of new products. Inventories suffer of lean manufacturing is often one piece
wastage or damage due to accidents or flow, the ultimate reduction in WIP.
decay.
With reduced Inventories, breakdowns
Most importantly, inventory is used as a become a major headache, as they have
safety net to shield problems imposed by the potential with low WIP levels to affect
poor supply or machine reliability and more than one machine. 5S in
prevents the company from tackling the conjunction with Total Productive
root cause of production disruptions. Maintenance minimises the impact of
breakdowns.
Reduction in change over times is often
required to make smaller batches an
economic reality. Single Minute Exchange
of Die (SMED) is such a technique to
reduce changeovers

Example of Waste in
Production Warehouse Office Healthcare
• Raw Materials • Slow moving • Files waiting to • Bed assignments
• Work In Progress stocks be worked on • Pharmacy stock
• Finished Goods • Pallets awaiting • Open projects • Lab supplies
• Consumable dispatch • Office supplies • Specimens
Supplies • Pallets awaiting • Emails waiting waiting analysis
locations to be read • Paperwork in
• Unused records progress
in the database • Patients in beds
 DEFECTS

“Defects mean wasted effort, resources and production time,

which inevitably means higher prices.”

The waste of defects relates to all benchmark it is useful to note that at

production that is (or was) not right six sigma only 3.4 defects per million
first time. Internal Failures relates to is produced, the average for most
defects occurring before shipment and companies will be around 5000
includes the cost of scrap, rework, defects per million opportunities.
delays and concessions. External
Cost of Quality (BS6143) Identifies the
Failures are discovered by the
cost to the company of achieving the
customer and include warranty claims,
current quality output. This can be
replacement or repair and potential
rough and ready to achieve a ball park
lost custom. The role of inspection is
figure or highly refined for a very
also considered a waste in this context
accurate picture of quality issues in
as it is a cost of not right first time
the company. This can and generally
Many companies, particularly does yield a significant % of turnover
American owned, are adopting a and is useful to kick start the company
continuous improvement technique into fixing this.
termed six sigma. As a global

Example of Waste in
Production Warehouse Office Healthcare
• Scrap • Picking or • Data entry error • Medication error
• Concessions processing • Pricing error • Wrong patient
• Rework errors in parts, • Missing • Wrong procedure
• Defects quantity or information • Missing
• Correction delivery • Missing information
• Field failure • Cost of re- specifications • Redraws
• Variation delivering or • Lost records • Poor clinical
• Missing parts correcting errors outcomes
• Damaged and
un-saleable
goods through
neglect /
accident
 WAITING

Products waiting around in factories ♦ Transport. With less WIP,

either as finished goods or work in equipment can be placed closer
progress (WIP) are another major together.
cause of waste. WIP is commonly ♦ Unnecessary Motions. In one piece
caused by producing large batch sizes flow, the next part to work upon
in order to engineer around is immediately at hand, double
production problems, such as long handling is free time
changeovers, quality problems and ♦ Waiting. Products waiting for the
unreliable equipment of sub- next processing step incur lead
contractors and/or suppliers. time penalties, and requires
Reducing WIP affects most if not all of valuable floor space to wait on
the wastes simultaneously, not just ♦ Defects. If product is waiting, it is
waiting, for example a quality time bomb just waiting
for some accident to occur.

Example of Waste in
Production Warehouse Office Healthcare
Waiting for… • Queues of Waiting for… Waiting for…
• processing vehicles waiting • Faxes • Bed assignments
• parts for loading / • Computer / • Admission to
• inspection unloading database department
• information • Waiting for • Copy machine • Testing &
• maintenance inventory to be • Customer Treatment
picked response • Discharge
• Picked stock • Return of files • Lab results
waiting for
dispatch
• Waiting for
equipment
 TRANSPORT

Double handling therefore affects both

Factory layouts can often be the
quality and productivity.
fundamental cause of excess
transportation. When appropriate, re- Transportation also means that
laying out the machines within a operators or groups are physically
factory from a functional to a cellular located far apart, which directly affects
layout has been found by many quality. Further the use of automated
companies to help not just reduce transportation equipment, such as
transportation waste but also reduce conveyors freeze in the waste and
WIP and waiting. once purchased and installed,
dominate production for years to
Any movement of materials is a waste;
come
however it is a waste that can never be
fully eliminated, though it should An excellent and simple technique to
reduce continuously over time. There apply is a spaghetti diagram that
is a direct correlation between the shows the total travel undergone by
number of transport and handling products as they move through the
operations and damage to goods. office or plant.

Example of Waste in
Production Warehouse Office Healthcare
• Moving parts in / • Poor route • Retrieving or Moving…
out of storage planning storing files • Samples
• Moving material • Planning & re- • Carrying • Specimens
from one planning load documents to • Patients for
workstation to configuration and from shared testing
another • Planning & re- equipment • Patients for
• Moving product planning of • Taking files to treatment
around the floor routes another person • Equipment
• No milk round • Chasing down
signatures
 UNNECESSARY MOTIONS

through elimination of all bending,

Simple “Good Housekeeping” is a very
stretching, moving to see, and double
effective way of reducing wasted
handling.
movement by staff and materials. 5S is
a technique used by many companies All employees should be encouraged
to focus effort on keeping the to be on the lookout for any work
workplace tidy with unused materials practices that contribute to this waste,
and machines disposed off so as not as they do both themselves and the
to create unnecessary clutter and company benefit.
therefore searching.
Poor workplace layout of machines
The importance of ergonomics is leads to wastes of movement that
essential not just for the well being of occur over a substantial number of
the operators but also to realise cycles, often with nobody noticing.
increased productivity & quality

Example of Waste in
Production Warehouse Office Healthcare
• Searching for parts, • Pallets in & out • Searching for • Searching for
equipment or tools of location files patients
• Sorting through repeatedly • Extra keystrokes • Searching for
materials or • Poor house or mouse clicks medications
components keeping • Clearing away • Searching for
• Reaching for tools • Looking for files on desk staff
or components stock • Gathering • Gathering tools
• Sorting, lifting or information • Gathering
decanting boxes of • Looking through supplies
parts manuals & • Handling
catalogues paperwork
• Handling
paperwork
 OVERPRODUCTION

Often caused by quality problems, a Overproduction leads directly to

company produces extra to allow for excessive lead times and storage
problems. These kinds of issue can be times, which means that defects, when
tackled using mistake proofing discovered, affect a large number of
methods (Poka yoke) and by products.
understanding the machine process
Overproduction also leads directly to
capabilities of the production
excessive work in progress, which
equipment. Statistical process control
physically separates operators and
(SPC) will also help monitor production
work stations, causing excessive
outputs and give warning of problems
transport and unnecessary motions
before they occur.
and reduces communication with a
Overproduction has been said by some corresponding impact on quality.
to be the worst of the “7 wastes” as it
Overproduction is in many cases
is a root cause of problems and other
supported and encouraged by the
wastes.
bonus scheme in place at the
company.

Example of Waste in
Production Warehouse Office Healthcare
• Producing to • Picking excess • More information • Medication given
forecast • Shipping excess than the to suit staff
• Producing big • Bulk picking – customer needs schedules
batches to avoid risks order error • More information • Testing ahead of
setups than the next time to suit
• Batches resulting in process needs laboratory
unsold goods • Creating reports • Treatments given
• Excessive stocks no one reads to balance staff,
and WIP • Producing extra equipment or
• Products copies workload
deteriorate due to
shelf life or direct
damage
 OVERPROCESSING

automation, combined with

This can also be regarded as using a
immaculately maintained, often older
hammer to crack a nut, using
machines.
expensive, high precision equipment,
when simpler tools would suffice. With big expensive machines, the
Equipment should be “right sized” for company may insist that the machine
the job – not too fast, too big, or too be “kept busy”, often leading to
flexible for the job in hand. overproduction, larger batches,
transportation waste and complex
This implies using several smaller
routings. Big machines will lock out
machines, rather than one big one.
the company from benefiting from
Each of these machines will have low
cellular manufacture for years to
utilisation (when compared with
come, at least until the, accountancy
batch-and-queue production), but the
based, depreciation period is over.
overall system will be more efficient.
Toyota, from which Lean stems, is
famous for their use of low-cost

Example of Waste in
Production Warehouse Office Healthcare
• Monuments • Automated • The latest, • Overlong stays in
• Using a “fast” Warehousing fastest software hospital
machines between • Forklifts over • New pc • Over prescription
lines hand carts hardware to run
• Long changeover new software
times and very fast
cycle times
• Ergo, big batches
•
 MAKING THE WRONG
PRODUCT CORRECTLY

Introduced by Womack and Jones in ♦ Develop a product that can

“Lean Thinking” as an 8th waste, respond to those needs.
making the wrong products correctly ♦ Optimise the product features so
relates to the inability of a business to as to meet our needs as well as
understand and deliver the value as customer needs.
specified by the customer. It is in ♦ Develop a process which is able to
effect a restatement of the first of produce the product.
their five lean principles: ♦ Optimise the process.
♦ Prove that the process can
♦ Specify Value from the point of produce the product under
view of the customer. operating conditions.
♦ Identify the Value Stream ♦ Transfer the process to
♦ Make the Value Flow Operations.
♦ Allow Value to be pulled by the
Juran concentrates not just on the end
customer
customer, but identifies other external
♦ Develop perfection
and internal customers. This effects
his concept of quality since one must
The entire first section of this booklet also consider the 'fitness of use' of the
relates directly to considering the interim product for the following
some of the varied elements that internal customers. He illustrates this
customers value in their products. idea via the Quality Spiral.

Quality Guru, Dr Joseph Juran, Joseph Juran's work emphasises the

postulates a quality trilogy of which need for specialist knowledge and
quality planning is one element, his tools for successful conduct of the
'Quality Planning Road Map', consists Quality Function. He emphasises the
of the following steps: need for continuous awareness of the
♦ Identify who are the customers. customer in all functions.
♦ Determine the needs of those
customers. Some class this waste within an
♦ Translate those needs into our Overproduction definition.
language.
 UNTAPPED HUMAN
POTENTIAL

The architects of the Toyota hard skills of problem solving but also
Production System (i.e. Lean) often in many soft skills as well. Senior
stated that the goal of their efforts management have to get involved and
was to create thinking people. There stay involved for the long term. By
are many techniques for developing tapping human potential we are asking
the “free brains” of staff who have that workers eliminate their job
been employed for their hands. function through their improvements.
Realising human potential requires Without addressing the problem of
commitment and support from all additional work force a culture of trust
levels of management. Toyota and cooperation will never be realised.
managers act as enablers, they coach
Untapped human potential also
rather than fix and help workers and
impedes transferring knowledge/best
low-level management develop
practice between staff, shifts and even
problem solving skills and support
production facilities, it also impedes
these skills with the resources
the ability of workers to form
necessary to realise change.
relationships and discuss new ideas
Making such changes requires a through time constraints, poor
culture of trust and cooperation, team systems in place or even very noisy
leaders need to be trained not only the shop floors.

Example of Waste in
Production Warehouse Office Healthcare
• Not listening • As for • Bureaucratic • As for production
• No Continuous production and system of paper & for Office
Improvement Office work
methods • No ability to
• Highly laborious make decisions
and repetitive tasks outside the
• No operator based guidelines
standards • As for production
• Poor attendance
• High turnover of
staff
• Poor safety record
 FURTHER INFORMATION

AGILITY
Netpark Research Institute
Swan Road
Sedgefield
TS21 3FB

Telephone: 0191 334 4741

Fax: 0191 334 4742
E-mail: agility.group@dur.ac.uk
Web site www.dur.ac.uk/agility

Kevin McKay
Consultant Production Engineer at above address
E-mail: k.r.mckay@dur.ac.uk
Mobile: 0772 042 5471

Acknowledgements

Many of the materials in this booklet are readily available in various forms and to
greater depth than is outlined here. The reader is encouraged to discover the
repository of knowledge on the subjects discussed.

Copyright Notice
© 2004 Agility. All Rights Reserved.
You may print and distribute this document within your company, on condition that
you acknowledge, and display this copyright. You may not sell, or use the contents
of this document for commercial gain, other than by improving your own company’s
efficiency and ability to meet its customer needs.