The Seven Deadly Wastes

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1 The Seven Deadly Wastes Facilitator s Guide Seven Deadly Wastes Overview Learn what the seven wastes are and why they are so deadly to your organization. A step by step guide to presenting Gemba Academy s Seven Wastes course to lean learners in all positions. This guide includes key points, discussion items, quiz questions and answers, and helpful tips. Using Gemba Academy s online learning content, any facilitator can use this guide to get teams of people combatting the Seven Wastes. June 2017

2 Preparation and Lesson Plan Use this page to prepare for each training session. Resources Gemba Academy videos Online quizzes Lean learning workbook Prepare for a Successful Training Session Watch videos and complete quizzes on your own at least one day before the training session. Read this guide thoroughly and become familiar with the course content before presenting to others. Prepare a suitable training room for your participants. Prepare a computer with internet access and a projector or large screen. Test all equipment before the training session. Have your Gemba Academy username and password ready. U: P: Choose your quiz style. The most popular option is to use the online interactive quiz, answering questions as a group with open discussion. Another option is to print the PDF version and have participants complete the quizzes individually. Training Session Outline Step 1: Introduce the session topic and content to the participants. Step 2: Play a video. Step 3: Lead a group discussion using this guide. Review key points, ask prepared questions and have participants fill in the blanks in their workbooks. Step 4: Take the quiz and review responses. Step 5: Apply what has been learned in your workplace. Choose Your Quiz Style When questions come up, encourage other participants to answer. Responding to questions with What does the team think? goes a long way to build engagement. Helpful Tip 1

3 Step 1: Session Overview Introduce the training topic. This module explains what the different types of work are, what waste is, and what the Seven Deadly Wastes are. Explain what to expect during this session. In this session we will: Watch (11:55) Review the content with a quiz Discuss what we learned from the video using the workbook Before you begin Ask your participants what they think the difference between value-added work and non-value-added work might be. Ask your participants what they think of when they hear waste. Have them give examples of what they consider to be waste. Examples may include waiting in long lines, receiving damaged or defective goods, having to walk from one area to another to finish a job, or anything similar. Step 2: Play Step 3: Review Key Points The Three Kinds of Work Any work or activity we do can be classified into one of three categories. Value-Added Work: In order for work to be value-added, three conditions must exist. 1. The customer must be willing to pay for it. 2. The thing must change in some way, in form, fit, or function. 3. The work must be done right the first time. We won t spend much time talking about Value-Added work as it relates to reducing waste. If any of the above conditions are not met, we say the work is Essential Non-Value-Added, which is work that doesn t add value to the product but must be done to meet the customer s needs under today s conditions. Non-value-added work is a minor area of focus for Lean thinkers, since it s harder to improve in this area and there isn t as much of it. Waste (Muda) Waste is work which adds no value and customers are not willing to pay for it. The best way to understand the impact of waste is to look at work from the customer s viewpoint. Ask yourself, if I were the customer, would I be willing to pay for this? Eliminating waste is similar to defragging a computer: when you defragment a computer, you rearrange the data so you open up space by eliminating the useless bits and only keeping the 2

4 essential parts. When we look at the total lead-time through a Value Stream, we often find an excessive amount of waste stealing resources and time. Unfortunately, many companies attempt to streamline the Value-added parts of the process, which are in the minority, instead of the wasteful activities. While this isn t necessarily a bad thing, there s far more opportunity in reducing the waste in the process first. Identifying the Seven Deadly Wastes In order to combat the Seven Wastes, we must be able to identify them: The Waste of Defects (or Correction): work that is less than the level the customer (whether internal or external) has requested. Some examples of defects in manufacturing environments include rework, scrap, missing parts, wrong parts, and yield lost at start up. Examples of defects in office or service environments include incomplete or incorrectly completed documents and misspelled words on video captions. The Waste of Inventory: any work or material on hand other than what s needed right now to satisfy customer demand. Some examples of inventory include excess raw materials, work in process, finished goods, supplies, and spare parts. In a later module, we ll cover different types of inventory such as cycle stock, buffer stock, and safety stock. Inventory waste can also exist in non-manufacturing environments, including basic things like having too many office supplies, or even the thousand unread s cluttering up your inbox. Excess inventory can create problems for a company by taking up space and creating problems such as trip hazards. The Waste of Processing (or Overprocessing): this waste occurs when things are designed in such a way that uses more resources, such as space, energy, or people, than is truly required, similar to using a sledgehammer to smash a peanut. This is one of the hardest wastes to see, since the root cause is often a lack of understanding of our customer s needs. Examples of processing waste include machines that are faster or slower than needed, equipment that uses more energy than needed, redundant work, drilling a hole instead of punching it, and cleaning something multiple times. The Waste of Waiting: any time when idle time is created because materials, machines, or information are not ready for people. This waste is usually less visible than others because it s often replaced by overproduction or busy work. When waiting becomes visible, it s 3

5 important to keep people from working to keep busy. Some examples of waiting include waiting for materials, an accountant waiting for information to close the monthly books, warehouse employees waiting on a forklift or a nurse waiting for important supplies. The Waste of Motion: any movement of people that doesn t add value to the product. By nature, most motion is wasted, so by studying motion and the time it takes to do a task, it s often possible to improve manual operation times by 30-50%. In addition, reducing motion waste is a key part of reducing changeover times. Some examples of motion are walking, reaching, searching, lifting, choosing, arranging, and turning. The Waste of Transportation: the movement of materials that adds no value to the product. It can also be described as the movement of materials by means of carts, trucks, forklifts, or simply your arms and legs. Moving material by using a conveyer is less wasteful, but is still not ideal. Examples include moving finished goods to storage, moving work-inprocess to the next step, moving between functional areas, moving parts to the line, having to walk paper around an office for signatures, and moving items to quality assurance. The Waste of Overproduction: when we make more product than the customer needs right now. Lean practitioners call Overproduction the mother of all wastes because it often leads to each form of waste in one way or another. It multiplies inventory waste and covers up waiting or defects, and makes it harder to understand our true capacity. Examples include making extra parts to cover for scrap, forecast production, economic order quantity lot sizes, piece rate production, and production to maximize utilization or absorption. Lean thinkers have begun to identify an eighth waste concerned with how effectively people are being utilized, which we call the Waste of Skills. Step 4: Quiz 4

6 1. Please select the three elements, or categories, of work. Value-Added Work Jidoka Non-Value-Added Work Waste 2. It s wise to initially focus our waste removal efforts on value-added process steps. True False 3. Please match the waste with the description. Motion Transportation Waiting Idle time is created because materials, machines, or information are not ready for people. Any movement of people that doesn t add value to the product. The movement of materials that adds no value to the product. 4. Please match the waste with the description. Inventory Overproduction Defects Processing Occurs when something s designed in such a way that uses more resources, such as space, energy, or people, than is truly required. Any material or wok on hand other than what s needed right now to satisfy customer demand. Occurs when we make more products than the customer needs right now. Work that is less than the level the customer has requested. 5

7 Step 5: Review & Application Give your participants minutes to answer the reflection questions at the end of their workbook. When they ve finished, have a short discussion with them. Now that you have a better understanding of what the seven wastes are, can you identify any of them in your daily life? What about in your workspace? Encourage your participants to voice their concerns. Have a flip board or whiteboard nearby, and write down their answers. Be prepared for a long list of concerns. 6