Waste Analysis in Lean Presentation

Continuous Improvement Toolkit
WASTE ANALYSIS
Lean Concept of Waste
Muda
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WASTE ANALYSIS
In a Lean culture, waste is anything that doesn’t add
value from the customer’s perspective.
It includes activities that

consume resources but
contribute zero value to the
customer.
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WASTE ANALYSIS
Wastes according to Lean are non-value-added
unnecessary activities which add cost to the product
or service and therefore should be eliminated.
=
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WASTE ANALYSIS
Waste Analysis is one of the core principles of Lean
thinking that involves identifying, quantifying,
eliminating and preventing waste.
It is one of the easiest ways

an organization can improve
its operations.
WASTE
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WASTE ANALYSIS
Many Lean concepts and tools focus on continually
identifying and eliminating waste.
In fact, one of the main objectives

of Lean is to remove all forms of
waste from the value stream. Lean
Thinking
For most companies, it is safe to
stay focused on the elimination of
waste in the early years of the Lean
journey.
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WASTE ANALYSIS
“ Total elimination of waste is the basic principle of

the Toyota system, and if one cannot understand
the basics, correct understanding of the whole is
impossible.
Shigeo
Shingo
“
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WASTE ANALYSIS
Much of the focus in Lean and Kaizen is on the
identification and the removal of waste, and this waste
may exist in the value stream, process or facility.
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WASTE ANALYSIS
BENEFITS
Saves money and gains a competitive Improves productivity, flexibility

advantage quality and safety
Improves morale and pride in the Brings efficiency and effectiveness to

workplace the existing processes
As a result, products and services that

Reduces lead times and defect rates will better meet customer
expectations
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WASTE ANALYSIS
The nice thing about focusing on waste is that the
benefits are immediately visible, which will get people
to invest in Lean intellectually and emotionally.
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WASTE ANALYSIS
Waste analysis is applicable in manufacturing, service
and office environments.
MANUFACTURING OFFICES
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WASTE ANALYSIS
Waste takes many forms and can be found at any time
and in any place. There are many classifications of
waste . . .
MURA Capital
Inventory Management
Transportation MURI
Movement Method Man
Over-production
Skills Material Machine
Space
Defects
Waiting Quality Safety
Over-processing Resources
5MQS
MUDA Energy
Type1 & Type 2
Pollution
WASTE ANALYSIS
A waste can be described by the Japanese word Muda.
Muda is any activity that consumes resources without

creating value to the customer.
Many of these activities can be

eliminated immediately thought
Kaizen events. Muda
WASTE ANALYSIS
Muda is closely related to other terms . . .
Muda Mura Muri

NVA Variation Overburden
The Three MUs
WASTE ANALYSIS
Muda Mura Muri

Consuming resources Unevenness, fluctuating and Overburden of people
without creating value variation in the operation or equipment resulting
to the customer in safety and quality
problems
Examples include mistakes Examples include asking someone Examples include asking
that require correction to do three tasks and another to one to operate at 30%
do 10 tasks capacity
WASTE ANALYSIS
Muri
Mura
Muda
No waste
WASTE ANALYSIS
Practically, it is recommended to reduce process
variation first (Mura), and then eliminate Muri and
Muda forms of waste.
Mura Muri Muda
WASTE ANALYSIS
One of the most basic and widely used models across
many industries around the world is the eight wastes.
Categorizing waste Over- Over-production
process
into these eight forms Waiting
makes them easier to Excess of
Unnecessary
Inventory
identify and helps Unused
Transportation
identify priorities for Skills

Unnecessary
Defects Movements
action.
WASTE ANALYSIS
The seven types of waste have been

introduced by Taiichi Ohno who is
one of the developers of TPS.
In the 1990s, the seven wastes have
been changed into eight wastes with
the emergence of a new category of
waste (unused skills).
It can also be applied in many other
areas and not just manufacturing.
WASTE ANALYSIS
“ The most important objective of the Toyota

system has been to increase production
efficiency by consistently and thoroughly
eliminating waste.
Taiichi
Ohno
“
WASTE ANALYSIS
The Eight Wastes
Unnecessary transportation – The Unnecessary movement – Movement

unnecessary movement of items or performed by people that is not
information from one place to another. required.
Excess of inventory – Having more

Waiting – Occurs any time a person or
materials or information than what is
a product is waiting.
actually needed.
Over-processing – Processing more

Over-production – Creating too much
than necessary to produce the desired
material or information.
output.
Defects, errors and mistakes – Causing

Unused Skills – Wasting human talent,
the effort to be redone to correct the
creativity, enthusiasm.
problem.
WASTE ANALYSIS
An easy way to remember these eight types of waste
is with the following acronyms . . .
TIM DOWN
WOODS TIME
WASTE ANALYSIS
Unnecessary Transportation
The unnecessary movement of

products, materials, supplies or
information from one place to
another.
It is normally the result of a poor

system design, ineffective layout,
or multiple sources or destinations.
WASTE ANALYSIS
Moving things costs money, causes

production and delivery delays, and
may include the risk of loss or
damage.
It is clearly visible in old-fashioned
production lines, where work-in-
process and finished goods are WORK IN FINISHED
PROGRESS GOODS
pushed from one area to another.
WASTE ANALYSIS
While a product is being transported,

it is not being worked on and no value
is being added to it.
Many companies now require their

suppliers to be close in order to
eliminate transportation costs.
WASTE ANALYSIS
Unnecessary Transportation Examples
Storing raw materials far away
from production lines.
Having the raw material storage
area and the loading area at
opposite ends.
Moving patients from
department to department.
WASTE ANALYSIS
Unnecessary Transportation Examples
Storing office supplies far away
from the office area.
Moving documents for approval
or seeking authorization.
Moving information through
electronic medical record (EMR)
in a medical center.
WASTE ANALYSIS
Ideas to reduce or eliminate unnecessary
transportation . . .
Find ways to reduce the distance between
work areas.
Try to transport in bulk and in both

directions.
Relocate items to be closer to where the work is

performed.
Introduce standard sequences for

transportation.
WASTE ANALYSIS
Unnecessary Movement
Wasted Motion or Excess of Motion
Refers to the movement performed by people that is

not required and will not add value to the product or
service.
This waste is normally the

result of a poor workplace
layout design or poor
ergonomic design.
WASTE ANALYSIS
While moving materials and

products from one location to
another is a transportation waste,
the unnecessary movement of
people and tools during the
production process is a
movement waste.
WASTE ANALYSIS
Not only it consumes time

and uses up energy, but it
may also increase health and
safety issues and can affect
the reliability of operations.
WASTE ANALYSIS
Unnecessary Movement Examples
Moving too much or travelling
farther than necessary to accomplish
a task.
Having to walk back and forth to get
tools during maintenance.
Having to bend or twist because of
poor ergonomic design.
Manual intervention to compensate
for the lack of flow.
WASTE ANALYSIS
Unnecessary Movement Examples
Carrying paperwork back and
forth between two locations far
away from each other.
Placing printers and photocopiers
far away from offices.
Having many and unnecessary
points of customer contact in a
bank
WASTE ANALYSIS
Ideas to reduce or eliminate wasted movement . . .
Evaluate the flow and layout to identify chances

to streamline the process.
Relocate the required tools at the point of use.
Improve workplace ergonomics.
Implement time and motion principles.
WASTE ANALYSIS
Waiting
Refers to the idle time that occurs

when there are unnecessary
delays within the process.
In a traditional process, a large

part of a product's life is spent
waiting to be worked on.
WASTE ANALYSIS
Waiting
Waiting occurs when a product is not in transport or

being processed, or when a person is waiting for a
work or service to get completed.
That costs time and money!
WASTE ANALYSIS
Waiting
Any time a person or a product is waiting:

There is no value being added.
Lead times are increased.
Wasted time is transferred to the
customer through increased costs.
WASTE ANALYSIS
Waiting Examples
Waiting for materials, parts, inspection,
decision, approval or people.
Waiting for the maintenance
department to repair a breakdown.
Waiting for the changeover to be
completed.
Waiting for a slow machine to operate.
Waiting for a preceding operator to
complete his/her work.
WASTE ANALYSIS
Waiting Examples
A customer waiting for a service.
Waiting in line at a grocery store.
Waiting for a meeting to start.
Arriving an hour early for a meeting.
Waiting for a return call when the
person said he would call back
immediately.
Experiencing poor computer system
performance.
WASTE ANALYSIS
Waiting Examples
Waiting in the doctor's waiting
room.
Waiting for lab results.
Emergency department wait
time.
WASTE ANALYSIS
Ideas to reduce or eliminate waiting . . .
Observe what keeps people waiting.
Measure waiting time and make it visible.
Allocate more resources at the bottleneck areas

to increase their capacities.
Improve scheduling and coordination.
WASTE ANALYSIS
Excess of Inventory
Excess of inventory is having

more materials or information
than what is actually needed.
Some inventory is necessary,

but most processes can be
managed differently to
minimize inventory.
WASTE ANALYSIS
Excess of Inventory
Takes up valuable working space.
Creates the need for more manpower and
equipment.
Ties up money that can be used elsewhere.
Has a significant impact on working capital
and operational costs.
Slows down production.
May hide problems such as line
imbalance and quality defects.
WASTE ANALYSIS
Inventory can be . . .
RAW WORK IN FINISHED MRO

MATERIALS PROGRESS GOODS GOODS
PACKAGING REPORTS & OFFICE MERCHANDISE

MATERIALS MANUALS SUPPLIES INVENTORY
WASTE ANALYSIS
RAW WORK IN FINISHED

MATERIALS PROGRESS GOODS
WASTE ANALYSIS
Inventory is harder to see in an REPORTS &

office or transactional MANUALS
environment.
Inventory in offices can be office

supplies, physical reports and
manuals that are not
immediately required.
WASTE ANALYSIS
Inventory Examples
Keeping more materials than
needed.
Storing raw materials ahead of
requirements.
Expired and obsolete inventory.
Held-for-inspection inventory.
Poor workplace organization in
a warehouse or office.
WASTE ANALYSIS
Inventory Examples
Archiving documents that are not required
and will never be used in the future.
Storing computer programs that will never
be used on hard drives.
Keeping outdated and duplicated files.
Giving people documentation they
will never need.
Unread and spam emails.
WASTE ANALYSIS
Ideas to reduce or eliminate inventory . . .
Keep track of inventory levels.
Reduce unnecessary safety stocks.
Avoid buying in bulk unless you are sure you will

use all of it.
Apply line balancing and Kanban.
WASTE ANALYSIS
Over-Production
Producing greater
quantities or making
more of something than is
required by the customer.
Over-production is
thought to be the worst
of the eight as it creates
other types of wastes.
WASTE ANALYSIS
Over-Production Occurs When . . .
Making things before they
are required (early
production).
Producing greater
quantities than what
customers demand.
A process produces more
than what the next process
can use right away.
WASTE ANALYSIS
Over-Production . . .
Increases lead times.
Consumes more materials.
Promotes a batch and queue system.
Hides quality problems.
May prevent other activities from taking place.
WASTE ANALYSIS
Over-Production Examples
Creating parts or information not
needed by the downstream process.
Producing faster than the downstream
process or customer demand.
Pushing rather than pulling parts
and information.
Producing information that will
never be used or sending reports
that will never be looked at.
WASTE ANALYSIS
Over-Production Examples
Printing multiple versions of the same
publication hoping that you will
distribute all.
Making a meal that restaurant
customers don't want.
Buying vegetables for one month on
your weekly shopping trip.
Performing a work which is not
needed or before it is needed.
WASTE ANALYSIS
Ideas to reduce or eliminate over-production . . .
Produce only what customers want and

when they want it.
Produce as close to the schedule as

possible.
Implement Pull and Kanban.
WASTE ANALYSIS
Over-Processing
Processing beyond what the

customer requires and
providing more value than
what he or she is willing to
pay for.
It occurs when you work on

the process more than
necessary.
WASTE ANALYSIS
Over-Processing
May result from . . .

Complex processes.
Poor product or service design.
Unclear requirements and
tolerances.
Internal standards that do not
reflect true customer
requirements.
WASTE ANALYSIS
Over-Processing Examples
Painting areas that will never be seen
or that are exposed to dirt or
corrosion.
Using tools that are more precise.
Using the wrong tool.
Working on the wrong part.
Completing reports in a level of detail
that is not required.
Stirring a mixed cup of coffee.
WASTE ANALYSIS
Duplication of work and filling
multiple forms with repeated data.
Reinventing the wheel or repeating
work which has already been done.
Bureaucratic approval systems that
requires multiple reviews and
signatures.
Unnecessary tests, diagnostics and
therapies for a patient.
WASTE ANALYSIS
How many bolts are there?
WASTE ANALYSIS
Ideas to reduce or eliminate over-processing . . .
Find ways to do less and to use less.
With every task try just do it once.
With every document try to just touch it once.
Provide clear standards for every process.
WASTE ANALYSIS
Defects and Errors
Defective Outputs
Occurs when the product

or service does not serve
the purpose it was created
for.
Or when the process

doesn’t complete perfectly It is the most obvious waste and
right the first time. the easiest to relate
WASTE ANALYSIS
Defects and Errors
Whenever a defect occurs during a

production process, extra costs are
incurred as a result of scrapping or
reworking the defective products.
And if it passed on to the customer,

additional costs are incurred as a result of
customer returns and negative reputation.
WASTE ANALYSIS
Defects and Errors
Defects are caused by errors in the process which is

normally caused by man, methods, materials and/or
machines.
Man Method
Machine 4 Material
WASTE ANALYSIS
Defects and Errors Examples
A manufacturing faulty part that
requires rework or needs to be
scrapped.
Held-for-inspection products.
Producing the wrong product.
X
Delivering a product to the wrong
destination.
Not on time in full delivery.
X
X
WASTE ANALYSIS
Any rework activity including repair,
recheck, return, reorder, replace.
Misdiagnosis in the healthcare
industry.
Duplicate medical records numbers
(MRN).
Dealing with guest complaints in a
hotels.
WASTE ANALYSIS
Typos and spelling mistakes in a
cover letter or resume.
Mislabeled envelops.
Missing information or incorrectly
completing an application.
Customer receives the wrong service
or nothing at all.
WASTE ANALYSIS
Ideas to reduce or eliminate defects and errors . . .
Find where the errors occur by collecting data.
Analyze root causes.
Solve the problem as early as possible.
Avoid multitasking and mind wandering.
WASTE ANALYSIS
Unused Human Skills
The eighth waste can be described in several

ways . . .
Unused creativity.
Wasted ideas and talents.
Untapped human potential.
Not using the potential and creativity of

employees and not involving them is a waste.
WASTE ANALYSIS
Unused Human Skills
Organizations employ people for the

specific skills they possess, and it is
wasteful not taking advantage of their
many other skills and capabilities.
Engage employees and exploit their

skills to solve everyday problems.
WASTE ANALYSIS
Unused Human Skills
Many companies now realize that

their biggest assets are their
employees.
It is only by exploiting the ideas and

skills of employees that companies
can reduce the other types of waste
and improve their performance.
WASTE ANALYSIS
Example of Unused Human Skills
When employees are not
effectively engaged in the
process.
When the right person is not
available at the right place.
When the person
performing the work is
overqualified.
WASTE ANALYSIS
Ideas to Reduce or Eliminate Unused Human Skills . . .
Make the most of brainstorming and other idea

gathering techniques.
Implement an idea system and encourage

employees to make improvement suggestions.
Ensure that the ideas and suggestions are well

heard.
Show respect and confidence for all by letting

them solve their daily problems as owners.
WASTE ANALYSIS
All forms of waste can be present in the service
environment and offices as well as in production
areas.
Examples:
Reentering data.
Duplication.
Manual checking.
Data errors.
Typos and misspelling.
WASTE ANALYSIS
There are other forms of waste beyond the eight wastes:
Wasted space – as the Wasted energy – a

hidden shared cost Pollution – the producer
customer will not pay
is increasingly being
for
made to pay for it
Capital waste –
Unclear communication,
throwing money at
roles, responsibilities,
problems instead of
Excessive resources – as authority, and lack of
addressing the real root
they only increase costs training, motivation and
causes
and add no value empowerment
WASTE ANALYSIS
Capital Waste and Wasted Money Examples . . .
Renting a warehouse Hiring an inventory control

Buying a forklift for
to store extra clerk or an operator to repair
each forklift driver
inventory damaged inventory
WASTE ANALYSIS
The Eight Wastes is an analysis tool . . .
It is not enough to just identify

the wastes. Identifying
Eliminating them is one of the possible waste
fundamental objectives of Lean.
The countermeasures planning
and implementation should Eliminating or
include the involvement from all reducing waste
relevant parties.
WASTE ANALYSIS
Tools and Techniques to Identify and Eliminate Wastes
Lean provides the required methodology, tools and techniques . . .
Waste walks Team based

and Gemba problem
walks solving
Opportunity
Ownership
process
by operators
maps
Waste
Regular Targeted
recording 5S and visual Value stream
improvement Value matrix Kaizen
forms and management mapping
meetings events
waste logs
WASTE ANALYSIS
Waste Walks
Enables to understand how the processes work and
helps to quickly identify waste and continuous
improvement opportunities.
WASTE ANALYSIS
Waste Walks
It is highly encouraged to regularly walk the process
and look for opportunities to reduce waste and make
improvements.
Observing the process with an eye towards waste

WASTE ANALYSIS
How to Conduct a Waste Walk?
1. Clearly describe the objective of
conducting the waste walk.
2. Select the process or area and
define the boundaries.
3. Prepare an observation form to
collect the desired information.
4. Get permission from the process
owner or supervisor to conduct the
walks and talk to the people there.
WASTE ANALYSIS
How to Conduct a Waste Walk?
5. Walk the flow of the process and look
for each of the eight types of waste.
6. Collect data, observe actual
practices, interview people and ask
questions.
7. Identify opportunities to eliminate
waste.
8. Prioritize improvement actions as
appropriate.
WASTE ANALYSIS
Waste Recording Forms and Waste Logs
Helps identify and record wasteful activities.
Usually contains a place to classify the waste
according to the eight wastes.
May also contain a place that encourages the team
to propose priority areas for action.
Process step Waste category Description Possible cause Proposed action
WASTE ANALYSIS
Remember, eight kinds of waste at workplaces and
offices.
Inventory
Waste creates no value and costs a lot of money

WASTE ANALYSIS
Further Information
The more visual you make a process, the more
visible the waste tends to become.
Learning to see the wastes is an essential skill that
you must develop within your team.
WASTE ANALYSIS
Further Information
Another method is using the 5MQS model which is
useful to understand the root causes.
Man Method Material Machine Management
Quality Safety
WASTE ANALYSIS
Further Information
It is good to think in terms of the eight wastes or the
5QMS, however, does it really matter which category
to assign to?
Waste in
Waste of Waste of Waste in
Searching management Waste in
materials and large inspection
waste control & ISO meetings
parts machines and QC
standards
Waste of Waste Waste of risk Waste in

Waste of Jigs Waste of
unused made by management making errors
and tools changeover
space breakdowns methods and mistakes
WASTE ANALYSIS
Do you have any of the below issues in your area?
Time wasted Poor safety Escalating Material

Rework
looking for record operating shortages
things costs
Unreliable
Incorrect Underutilized Inconsistent supplier
Incomplete employees
information employee performance
information
performance
Late or Quality is the

Measures of Dissatisfied
High employee missed responsibility
performance customers
turnover deliveries of quality
are not clear
personnel
WASTE ANALYSIS
Further Information
Common Causes of Waste . . .
Misunderstanding of the customer’s true needs
Variability in processes or machinery

Pressure to maximize production to justify
expensive equipment and technology costs
Outdated or inappropriate policies
Lack of training
Poor management staff relations
WASTE ANALYSIS
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CITOOLKIT
The Continuous Improvement Toolkit
www.citoolkit.com
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Continuous Improvement Toolkit

It includes activities that

It is one of the easiest ways

In fact, one of the main objectives

“ Total elimination of waste is the basic principle of

Saves money and gains a competitive Improves productivity, flexibility

Improves morale and pride in the Brings efficiency and effectiveness to

As a result, products and services that

Muda is any activity that consumes resources without

Many of these activities can be

Muda is closely related to other terms . . .

Muda Mura Muri

The Three MUs

Muda Mura Muri

Mura Muri Muda

identify priorities for Skills

The seven types of waste have been

“ The most important objective of the Toyota

Unnecessary transportation – The Unnecessary movement – Movement

Excess of inventory – Having more

Over-processing – Processing more

Defects, errors and mistakes – Causing

The unnecessary movement of

It is normally the result of a poor

Moving things costs money, causes

While a product is being transported,

Many companies now require their

Try to transport in bulk and in both

Relocate items to be closer to where the work is

Introduce standard sequences for

Refers to the movement performed by people that is

This waste is normally the

While moving materials and

Not only it consumes time

Evaluate the flow and layout to identify chances

Relocate the required tools at the point of use.

Improve workplace ergonomics.

Implement time and motion principles.

Refers to the idle time that occurs

In a traditional process, a large

Waiting occurs when a product is not in transport or

That costs time and money!

Any time a person or a product is waiting:

Observe what keeps people waiting.

Measure waiting time and make it visible.

Allocate more resources at the bottleneck areas

Improve scheduling and coordination.

Excess of inventory is having

Some inventory is necessary,

RAW WORK IN FINISHED MRO

PACKAGING REPORTS & OFFICE MERCHANDISE

RAW WORK IN FINISHED

Inventory is harder to see in an REPORTS &

Inventory in offices can be office

Keep track of inventory levels.

Reduce unnecessary safety stocks.

Avoid buying in bulk unless you are sure you will

Apply line balancing and Kanban.

Produce only what customers want and

Produce as close to the schedule as