Seven Manufacturing Wastes
    by David McBride
    http://www.emsstrategies.com

    Waste elimination is one of the most effective ways to increase
    the profitability of any business. Processes either add value or
    waste to the production of a good or service. The seven wastes
    originated in Japan, where waste is known as "muda." "The
    seven wastes" is a tool to further categorize "muda" and was
    originally developed by Toyota's Chief Engineer Taiichi Ohno
    as the core of the Toyota Production System, also known as
    Lean Manufacturing. To eliminate waste, it is important to
    understand exactly what waste is and where it exists.

    While products significantly differ between factories, the typical
    wastes found in manufacturing environments are quite similar.
    For each waste, there is a strategy to reduce or eliminate its
    effect on a company, thereby improving overall performance
    and quality.






    The seven wastes consist of:
    1. Overproduction.

    Simply put, overproduction is to manufacture an item before it is
    actually required. Overproduction is highly costly to a manufacturing
    plant because it prohibits the smooth flow of materials and actually
    degrades quality and productivity. The Toyota Production System is
    also referred to as "Just in Time" (JIT) because every item is made
    just as it is needed. Overproduction manufacturing is referred to as
    "Just in Case." This creates excessive lead times, results in high
    storage costs, and makes it difficult to detect defects. The simple
    solution to overproduction is turning off the tap; this requires a lot of
    courage because the problems that overproduction is hiding will be
    revealed. The concept is to schedule and produce only what can be
    immediately sold/shipped and improve machine changeover/set-up
    capability.



    2. Waiting

    Whenever goods are not moving or being processed, the waste of
    waiting occurs. Typically more than 99% of a product's life in
    traditional batch-and-queue manufacture will be spent waiting to be
    processed. Much of a product's lead time is tied up in waiting for the
    next operation;this is usually because material flow is poor,
    production runs are too long, and
    distances between work centers are too great. Goldratt (Theory of
    Constraints) has stated many times that one hour lost in a
    bottleneck process is one hour lost to the entire factory's output,
    which can never be recovered. Linking processes together so that
    one feeds directly into the next can dramatically reduce waiting.

                                                 3. Transporting

    Transporting product between processes is a cost incursion which
    adds no value to the product. Excessive movement and handling
    cause damage and are an opportunity for qualityto deteriorate.
    Material handlers must be used to transport the materials, resulting
    in another organizational cost that adds no customer value.  
    Transportation can be difficult to reduce due to the perceived costs
    of moving equipment and processes closer together. Furthermore, it
    is often hard to determine which processes should be next to each
    other. Mapping product flows can make this easier to visualize.

    4. Inappropriate Processing

    Often termed as "using a sledgehammer to crack a nut,"many
    organizations use expensive high precision equipment where
    simpler tools would be sufficient.

    This often results in poor plant layout because preceding or
    subsequent operations are located far apart. In addition they
    encourage high asset utilization (over-production with minimal
    changeovers) in order to recover the high cost of this equipment.
    Toyota is famous for their use of low-cost automation, combined
    with immaculately maintained, often older machines. Investing in
    smaller, more flexible equipment where possible; creating
    manufacturing cells; and combining steps will greatly reduce the
    waste of inappropriate processing.







    5.  Unnecessary Inventory

    Work in Progress (WIP) is a direct result of
    overproduction and waiting. Excess inventory tends to hide
    problems on the plant floor, which must be identified and resolved in
    order to improve operating performance. Excess inventory
    increases lead times, consumes productive floor space, delays the
    identification of problems, and inhibits communication.

    By achieving a seamless flow between work
    centers, many manufacturers have been able to improve customer
    service and slash inventories and their associated costs.

    6. Unnecessary / Excess Motion

    This waste is related to ergonomics and is seen in all instances of
    bending, stretching, walking, lifting, and reaching. These are also
    health and safety issues, which in today's litigious society are
    becoming more of a problem for organizations. Jobs with excessive
    motion should be analyzed and redesigned for improvement with
    the involvement of plant personnel.

    7. Defects

    Having a direct impact to the bottom line, quality defects resulting in
    rework or scrap are a tremendous cost to organizations.

    Associated costs include quarantining inventory, re-inspecting,
    rescheduling, and capacityloss. In many organizations the total cost
    of defects is often a significant percentage of total manufacturing
    cost. Through employee involvement and Continuous Process
    Improvement (CPI), there is a huge opportunity to reduce defects at
    many facilities.

    In the latest edition of the Lean Manufacturing classic Lean Thinking,
    Underutilization of Employees has been added as an eighth waste to
    Ohno's original seven wastes.

    Organizations employ their staff for their nimble fingersand strong
    muscles but forget they come to work everyday with a free brain. It is
    only by capitalizing on their employees' creativity that organizations
    can eliminate the other seven wastes and continuously improve
    their performance.





    Many changes over recent years have driven organizations to
    become world class organizations or Lean Enterprises. The first
    step in achieving that goal is to identify and attack the seven wastes.
    As Toyota and other world-class organizations have come to realize,
    customers will pay for value added work, but never for waste.






    About the Author
    David McBride is co-founder of EMS Consulting Group
    (http://www.emsstrategies.com), a Carlsbad, CA based
    engineering and management consulting firm. David has a BS in Mechanical Engineering
    from Ohio State University.

    He has a successful track record in the development and implementation of FMEA and
    Design for Manufacturability programs at several organizations and has greatly reduced
    Manufacturing costs through the utilization of Lean Manufacturing, Kaizen Events, and
    Manufacturing System Analysis.
    He has also been highly successful at developing and executing New Product
    Introduction processes, and Staffing and Capital Equipment Plans.This article courtesy of
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    intact.
Quality Manfacturing Associates