4 - Define - Elements of Waste

Define Phase
Elements of Waste
Elements of Waste
Understanding Six Sigma
Six Sigma Fundamentals
Selecting Projects
Elements of Waste
7 Components of Waste
5S
Wrap Up & Action Items
OSSS LSS Green Belt v11 MT - Define Phase 2 © Open Source Six Sigma, LLC
Definition of Lean
“Lean Enterprise is based on the premise that

anywhere work is being done, waste is being
generated.
The Lean Enterprise seeks to organize its processes

to the optimum level, through the continual focus
on the identification and elimination of waste.”
-- Barbara Wheat
Lean – History
1885 1913 1955 - 1990 1993 -

Craft Production Mass Production Toyota Production Lean Enterprise
- Machine then harden - Part inter-changeability System - "Lean" applied to all
- Fit on assembly - Moving production line - Worker as problem functions in enterprise
- Customization - Production engineering solver value stream
- Highly skilled workforce - "Workers don't like to - Worker as process - Optimization of value
- Low production rates think" owner enabled by: delivered to all
- High Cost - Unskilled labor -- Training stakeholders and
- High production rates -- Upstream quality enterprises in value chain
- Low cost -- Minimal inventory - Low cost
- Persistent quality -- Just-in-time - Improving productivity
problems - Eliminate waste - High quality product
- Inflexible models - Responsive to change - Greater value for
- Low cost stakeholders
- Improving productivity
- High quality product
Lean Six Sigma
Lean Six Sigma combines the strengths of each system:
• Lean • Six Sigma

– Guiding principles based – Focus on voice of the
operating system customer
– Relentless elimination of all – Data and fact based
waste decision making
– Creation of process flow – Variation reduction to near
and demand pull perfection levels
– Resource optimization – Analytical and statistical
– Simple and visual rigor
Strength: Efficiency
Strength: Effectiveness
An Extremely Powerful Combination!

Project Requirements for Lean
• Perhaps one of the most criminal employee performance

issues in today’s organizations is generated not by a desire to
cheat one’s employer but rather by a lack of regard to waste.
• In every work environment there are multiple opportunities for
reducing the non-value added activities that have (over time)
become an ingrained part of the standard operating
procedure.
• These non-value added activities have become so ingrained
in our process that they are no longer recognized for what
they are, WASTE.
• waste (v.) Anything other than the minimum amount of time,
material, people, space, energy, etc needed to add value to
the product or service you are providing.
• The Japanese word for waste is muda.
Get that stuff
outta here!
Seven Components of Waste
Muda is classified into seven components:

– Overproduction
– Correction (defects)
– Inventory
– Motion
– Overprocessing
– Conveyance
– Waiting
Sometimes additional forms of muda are added:

– Under use of talent
– Lack of safety
Being Lean means eliminating waste.
Overproduction
Overproduction is producing more than the next step needs

or more than the customer buys.
– It may be the worst form of waste because it contributes to all
the others.
Examples are:
✓Preparing extra reports
✓Reports not acted upon or even read
✓Multiple copies in data storage
✓Over-ordering materials
✓Duplication of effort/reports
Waste of Overproduction relates to the

excessive accumulation of work-in-process
(WIP) or finished goods inventory.
Correction
Correction of defects is as obvious as it sounds.
Examples are:
✓Incorrect data entry
✓Paying the wrong

vendor
✓Misspelled words in
communications
✓Making bad product
✓Materials or labor
discarded during
production
Eliminate erors!!
Waste of Correction includes the waste of
handling and fixing mistakes. This is common in
both manufacturing and transactional settings.
Inventory
Inventory is the liability of materials that are bought,

invested in and not immediately sold or used.
Examples are:
✓Transactions not
processed
✓Bigger “in box” than “out

box”
✓Over-ordering materials
consumed in-house
✓Over-ordering raw
materials – just in case
Waste of Inventory is identical to overproduction

except that it refers to the waste of acquiring
raw material before the exact moment that it is
10
needed.
OSSS LSS Green Belt v11 MT - Define Phase © Open Source Six Sigma, LLC
Motion
Motion is the unnecessary movement of people and

equipment.
– This includes looking for things like documents or parts as well
as movement that is straining.
Examples are:
✓Extra steps
✓Extra data entry
✓Having to look for

something
Waste of Motion examines how people

move to ensure that value is added.
Overprocessing
Overprocessing is tasks, activities and materials that don’t

add value.
– Can be caused by poor product or tool design as well as
from not understanding what the customer wants.
Examples are:
✓Sign-offs
✓Reports that contain more

information than the
customer wants or needs
✓Communications, reports,
emails, contracts, etc that
contain more than the
necessary points (briefer is
Waste of Overprocessing relates to over- better)
processing anything that may not be
adding value in the eyes of the ✓Voice mails that are too
customer. long
Conveyance
Conveyance is the unnecessary movement of material and

goods.
– Steps in a process should be located close to each other so
movement is minimized.
Examples are:
✓Extra steps in the process
✓Distance traveled
✓Moving paper from place

to place
Waste of Conveyance is the movement of materi
Waiting
Waiting is nonproductive time due to lack of material,

people, or equipment.
– Can be due to slow or broken machines, material not arriving
on time, etc.
Examples are:
✓Processing once each

month instead of as the
work comes in
✓Showing up on time for a

meeting that starts late
✓Delayed work due to lack

of communication from
another internal group
Waste of Waiting is the cost of an idle resource.

Exercise
Exercise objective: To identify waste that occurs

in your processes.
Write an example of each type of Muda
below:
– Overproduction ___________________
– Correction ___________________
– Inventory ___________________
– Motion ___________________
– Overprocessing ___________________
– Conveyance ___________________
– Waiting ___________________
5S – The Basics
5S is a process designed to organize the workplace, keep it

neat and clean, maintain standardized conditions and instill
the discipline required to enable each individual to achieve
and maintain a world class work environment.
5S
• Seiri - Put things in order

• Seiton - Proper Arrangement
• Seiso – Clean
• Seiketsu – Purity
• Shitsuke - Commitment
English Translation
There have been many attempts to force five English “S” words to
maintain the original intent of 5S from Japanese. Listed below are
typical English words used to translate:
1. Sort (Seiri)
2. Straighten or Systematically Arrange (Seiton)
3. Shine or Spic and Span (Seiso) Place things in such a
4. Standardize (Seiketsu) way that they can be
easily reached whenever
5. Sustain or Self-Discipline (Shitsuke) they are needed.
Straighten
Sort Shine
5S
Visual sweep of areas,
Identify necessary items and eliminate dirt, dust and
remove unnecessary ones, use scrap. Make workplace
time management. shine.
Self-Discipline
Standardize
Make 5S strong in
Work to standards,
habit. Make problems
maintain standards, wear
appear and solve
safety equipment.
them.
Exercise
Exercise objective: To identify elements of 5S in your

workplace.
Write an example for each of the 5S’s below:
• Sort ____________________
• Straighten ____________________
• Shine ____________________
• Standardize ____________________
• Self-Discipline ____________________
Summary
At this point, you should be able to:
• Identify and describe the 7 Elements of Waste
• Describe 5S
• Provide examples of how Lean Principles can affect your area

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Define Phase

Understanding Six Sigma

Six Sigma Fundamentals

Wrap Up & Action Items

“Lean Enterprise is based on the premise that

The Lean Enterprise seeks to organize its processes

1885 1913 1955 - 1990 1993 -

Lean Six Sigma combines the strengths of each system:

• Lean • Six Sigma

An Extremely Powerful Combination!

• Perhaps one of the most criminal employee performance

Muda is classified into seven components:

Sometimes additional forms of muda are added:

Being Lean means eliminating waste.

Overproduction is producing more than the next step needs

✓Preparing extra reports

✓Reports not acted upon or even read

✓Multiple copies in data storage

Waste of Overproduction relates to the

Correction of defects is as obvious as it sounds.

✓Incorrect data entry

✓Paying the wrong

✓Making bad product

Inventory is the liability of materials that are bought,

✓Bigger “in box” than “out

Waste of Inventory is identical to overproduction

Motion is the unnecessary movement of people and

✓Extra data entry

✓Having to look for

Waste of Motion examines how people

Overprocessing is tasks, activities and materials that don’t

✓Reports that contain more

Conveyance is the unnecessary movement of material and

✓Extra steps in the process

✓Moving paper from place

Waste of Conveyance is the movement of materi

Waiting is nonproductive time due to lack of material,

✓Processing once each

✓Showing up on time for a

✓Delayed work due to lack

Waste of Waiting is the cost of an idle resource.

Exercise objective: To identify waste that occurs

5S is a process designed to organize the workplace, keep it

• Seiri - Put things in order

Exercise objective: To identify elements of 5S in your

At this point, you should be able to:

• Identify and describe the 7 Elements of Waste

• Provide examples of how Lean Principles can affect your area

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