Waste Identification

CONFIDENTIAL Document Number : GBE-KPO-2-004-00

Revision Number : 04
Effective Date : May 22, 2013
 Document Title Document # Revision
GBE KPO-2-004-00 04
WASTE IDENTIFICATION Document Owner
Shoubhik Sen

REVISION HISTORY

Revision Description of Change Writer/Reviser Effective Date

01 Initial Release Milind Katare January 02, 2008

02 Document formatted as per DMS policy Milind Katare December 11, 2008

03 Document format updated as per latest DMS Policy Milind Katare December 02, 2011
Slide 4: changed overview and scope
Slide 5: Added “Learn to identify waste in our operations”
slide 9: Changed the order of information to read TIMWOODS
04 Slide 11: Added slide and information Shoubhik Sen May 22, 2013
Slide 12-26 removed and replaced with the 3 examples of OFFICE, SC and
operations from VSM training.

COMPANY Waste Identification

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 Table of Contents
Contents Slide(s)

 Overview & Scope 5

 Objective 6
 Enemies of Lean 7 - 10
 Waste 1 – 8 11 - 25

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 Overview & Scope

Objective
A fundamental characteristic of Lean manufacturing is the systematic identification and elimination of
waste to reduce manufacturing or operating costs. A relentless focus on eliminating waste will have a
profound effect on the quality of the service or product.

Scope

This module provides an overview of what Waste is, how to identify and finally eliminate it in a given
process.

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 Objective
 To eliminate all activities that do not add value and/or are safety nets, and maximize use of
scarce resources (capital, people and space)

 To learn to identify waste in our work areas

 To assist in the identification and steady elimination of waste (muda), resulting in the
improvement of quality, production time and cost reduction.

 To understand how to solve the problem of waste:

 Lean Manufacturing has several 'tools' at its disposal - the ‘5 Whys’, ‘Poka Yoke’ (mistake
proofing), ‘Work Load Leveling chart’ etc.
 Improving 'flow' or smoothness of work (thereby steadily eliminating (mura, unevenness)
through the system

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 Enemies of Lean Manufacturing

WASTE, VARIABILITY AND INFLEXIBILITY ARE THE THREE ENEMIES OF LEAN

System
(inhibitors)
Business flows Performance indicators
(inputs) (outputs)
Waste
People and process Quality

Material Cost
Variability Inflexibility
Information Delivery

Feedback loop

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 Enemies of Lean Manufacturing
Value added
Waste Work that directly increases the value
Objective
Work which does not
of the product (e.g. assembly of parts) The objective is to maximize
increase the value of
Value added the value added part by
the product (e.g. eliminating waste and
Waste incidental work
rework due to
Elements
wrongly assembled
parts or operator of work
waiting-time while
Waste
machine is running.) Incidental work
( Value Enable ) Value added

Incidental
Incidental Work (Value
Enable) work
Non value added, but necessary work Elements
(e.g. small movements to reach for of work
material for assembly, quality-
checks)

Source: McKinsey

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 Defining Value and Waste

Work / activity which neither add nor Work / activity which directly either add or
increase the value of the product / service increase the value of the product or service
(e.g. operator rework product or buyer (e.g. assembly of parts or trigger kanban
manual re-input PO data or HR re-update signal to suppliers or IT anti-virus security
employee personal files) patching)
Work
Elements
The objective is to
maximize the value-added
No value-added but necessary work part by eliminating ‘wastes’
(e.g. OBA check or IQA check or Finance cycle and ‘value enable’
count audit or Engineer calibrate fixtures)

Defining Value
Value Added Activity
• Something customers are willing to pay for
• Activities that either add or increase values
• Changes the form, fit & function
• Is being done right the first time
Non-Value Added Activity
• All other functions and unwanted features are by
definition … WASTE
• Activities that neither add nor increase value
• Adding no value to customers
• Simply raise costs in our business

ELIMINATE NON-VALUE ADD ACTIVITY

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 VSM - Eliminate Wastes and Add Values

IDENTIFY

Identify Non Value Add, Value Enabler and Value Add activities. Usually about 60% of activities are
Non-Value Add are embedded inside the process lead-time resulting high operational costs.

ELIMINATE

Eliminate the Non Value Add activities will enable the process lead-time to reduce by more than
50% resulting competitive costs. Wastes elimination is the fundamental of any improvements.

BREAKTHROUGH

Breakthrough improvements to add more values is the spirit on pursuing for perfections to achieve
the position ahead of competitions. It’s Best in Class level of practices are in implementation.

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 Enemies of Lean Manufacturing

Variability

Transportation • People variability • Customs and practices

T
I Inventory • Process variability • Configuration

M Motion • Materials • Capability

• Information
W Waiting • Capacity
O Over Production • Change-over
O Over Processing

D Defect
S Skills Unutilized

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 How to start identifying waste and why we have waste

5’s methodology is always the best way to start; it will help to identify waste in a more efficient and
expedite way
Office Operations

Why waste is created in our process?

Forgot to change solution when change the process, different process = different solutions.
• Let waste became part of the process due lack of standards and even waste is documented as
part of the process.
• Think that the current way to do a product is the perfect way.

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 Transportation

Transporting materials or documents farther than necessary, or temporarily locating, filing, storing,
stacking, or moving materials, people, information or documents, wastes time and energy. Materials
and supplies are moved several times before reaching final location.

Operations Supply Chain Office

 Fast moving materials located at

 Material handling equipment  Physical movement of documents,
back in Warehouse
travelling empty paperwork
 Unplanned routing of Water
 Excess movement because of  Distributing unnecessary copies.
spiders.
shopfloor layout – next process  Excessive e-mail attachments
 Movement of goods inside
not adjacent.  Approvals
Warehouse
 Intermediate storage locations
 Unplanned truck stops

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 Inventory

Excess stock of anything, more than what is required to deliver to next process is waste. Excess
Inventory takes space, may impact safety and can become obsolete if requirements change. Holding
Inventory works against quality and productivity, as it makes it difficult by hiding problems.

Operations Supply Chain Office

 High Inventory due to poor  Purchasing Office equipment

 WIP due to unbalanced processes
Forecasting, Planning before required
 Bonepile due to poor quality
 High Inventory due to high  Unread e-mails.
 Intermediate storage locations
Component Lead Times.  Batch processing of reports
 Production before required
 Excess and Obsolete
 Non square sets

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 Motion
Any motion that is not necessary for successful completion of product or service. Essentially any
motion that does not add value is waste.

Operations Supply Chain Office

 Unnecessary and excessive

movements by Operator due to
poor layout, process design
 Walking between stations
 Bending, searching, sorting etc. –
‘9 No’s’
 Searching for documents
 Searching for Material in
 Walking to printer, copier etc.
Warehouse
 Walking from one Office to
 Reaching for fast moving material
another due to poor workplace
high in racks or at back.
organization

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 Waiting
Waiting is any delay within a process or between end of one activity and start of the next. It means
ideal time and causes workflow to stop It can be for products from previous process, materials,
documents, information etc. It adds no Value as the Customer definitely will not pay for it.

Operations Supply Chain Office

 Waiting for Approval

 Waiting for Materials
 Challenge Inventory waiting for  Slow Computer speed.
 Machine breakdown due to poor
disposal  Waiting for information from
Maintenance
 Waiting for truck to dock and Customers
 Long m/c set-up times
loading/unloading
 Unbalanced processes

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 Over Production

Over Production is when you produce faster and in higher quantities than what is required by
Customer. This does not improve efficiency. It consumes more resources than is necessary leading to
other types of waste.

Operations Supply Chain Office

- Taking print-outs before required

- Excess output in Production line
- Faster output than required
specially if the matter changes
- Aging FG Inventory
- Processing done routinely, not
taking current requirements

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 Over Processing

Any unnecessary and redundant step in either production or communication which adds no value to
the product or service.

Operations Supply Chain Office

 Multiple signatures
 Excessive reviews
 Excess inspection
 More IQC with low % of DTS  Generating reports no one will
 Same tests done on multiple
use
stations
 Making extra copies

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 Defects
Waste as a result of producing defective work that needs to be redone is non value add. This
waste also includes lost productivity associated with disrupting a normal process to deal with
defects or rework.

Operations Supply Chain Office

 Material to be returned to  Data entry errors

 Defects due to workmanship
vendors  Engineering Change orders
 Component defects
 Material picking errors  Incorrect or missing information
 Returned from Customer
 Incorrect order entries from Customers
 Bonepile
 Misplaced stocks  Calculation errors on billing,
 Scrap
invoices

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 Skills

This is the waste we incur, when we do not leverage employees potential to get the maximum output.
This results in losing time, ideas, skills, improvements by not listening or engaging Employees.

Operations Supply Chain Office

 No multitasking – waiting due to  Waiting due to no forklift training  No job rotation

inadequate skills, training  System access  No cross training

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 7+1 Wastes – Supply Chain / Office / Operations (1 of 3)
No The 7+1 Wastes Definition Examples of Supply Chain Examples of Office Wastes Examples of Operations
Wastes Wastes

1 Transportation Unnecessary
movement of
parts between
processes

Movement of goods in Physical Movement of Movement of goods inside

warehouse documents shop floor

2 Inventory Any raw

Materials, work
in progress
(WIP) or finished
goods which are
not having value Excess & Obsolete goods
added to them at warehouse Over stocking of IT spare parts High WIP DOS in shop floor

3 Motion Waste motion

occurs when
individuals move
more than is
necessary for
the process to
Searching of part in Reaching for tools in
be completed warehouse Searching files workbench

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 7+1 Wastes – Supply Chain / Office / Operations (2 of 3)

No The 7+1 Wastes Definition Examples of Supply Chain Examples of Office Wastes Examples of Operations
Wastes Wastes

4 Waiting People or parts

that wait for a
work cycle to be
completed

Pending clearance of Customer/ supplier Operators waiting due to

Challenge inventory waiting to meet up bottleneck in the security
with Flex employee (s) process.
5 Over To produce sooner,
Production faster or in greater
quantities than the
absolute customer
demand
Additional printing of Excess output in
Aging inventory at FGS production line
documents against the need

6 Over Processing beyond

Processing the standard
required by the
customer

More IQC check with low Repetitive data Over inspection due to non
% Dock-To-Stock entry availability of inspection criteria

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 7+1 Wastes – Supply Chain / Office / Operations (3 of 3)

No The 7+1 Definition Examples of Supply Chain Examples of Office Examples of Operations
Wastes Wastes Wastes Wastes

7 Defects A defect is a
component which the
customer would deem Incoming Inspection
unacceptable to pass
the quality standard

Materials reject area

Incoming Materials reject Incorrect data Rework motherboard

8 Skills Employees not

Unutilized leveraged to their full
potential

Receiving personnel unable Operator waiting and unable

to receive parts due to lack of No authority for to perform other tasks due to
forklift training performing tasks no ability to multi-task

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 Summary

Transportation: Re-layout the production floor or office areas to relocate processes near the point
of use, and introduce standard sequences for transportation.

Inventory: Improve production control system and commit to reduce unnecessary "comfort stocks"

Motion: Arrange people and parts around stations with work content that has been standardized
to minimize motion.

Waiting: Rebalance activities to remove waiting, then make essential waiting visible.

Over Produce: Produce only what the customers want, when they want it; do not produce finished
goods just in case.

Over Processing: Provide clear, customer-driven standards for every process.

Defects: Analyze and solve root causes of scrap and rework.

Skills: Analyze and optimise personal skills and experience to maximise output

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 Waste Reduction in Operations
Work Load Leveling Chart VA NVA TT

STEP 1 STEP 2 STEP 3 STEP 4

Total CT = 270 secs, TT = 90 secs Total CT = 270 secs, TT = 90 secs Total CT = 190 secs, TT = 90 secs Total CT = 175 secs, TT = 90 secs
Headcount required = 3 Headcount required = 3 Headcount required = 2.1 Headcount required = 1.9

VA = 170 secs, NVA = 100 secs VA = 170 secs, NVA = 100 secs VA = 170 secs, NVA = 20 secs VA = 155 secs, NVA = 20 secs

ACTIONS
ACTIONS ACTIONS
- Line re-balanced with 2
- Line balanced with 3 - Reduced NVA time by
operators.
operators. removing waste
- VA time reduced by
- No change in VA, NVA times - No change in VA time
combining, simplifying

FINAL RESULT
Headcount reduced by ‘half’ at same output level => Double Productivity

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 Waste Reduction in Office
7 Steps of Office Kaizen
 7 Steps of Office Kaizen is a must deploy tool to Reduce, Remove and combine processes (2R&1C).
 This tool will help us to identify and eliminate wastes from our business processes in a systematic
manner.
 The 7 Steps form the basis for continuous improvement towards paperless and automated
processes.

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Thank you

For further information, please visit :

http://intranet.flextronics.com/gbe/default.aspx

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