LEAN MANUFACTURING

8 WASTAGE
PREPARED BY:-KULDEEP SINGH RATHORE
PARLE EXECUTIVE CM OPS
What is lean ?
Lean is a culture that focuses on “open mind thinking, challenging the
present”
Lean manufacturing is a philosophy which shorten the time line between the
costumer order and the product shipment by eliminating waste.
Business as usual is like
Costumer order wastage product shipment
TIME
Lean manufacturing
Costumer order no waste product shipment
TIME (SHORTER)

What is Value?
IS WHAT THE COSTUMER WILLING TO PAY YOU
VALUE CREATED
 Product value is the benefit that a customer gets by using a product to
satisfy her needs
 A capability provided to a costumer,
 Of the highest quality
 At the right time
 At an appropriate price
 As defined by the costumer
 Always think WHO IS THE COSTUMER and WHAT ARE THEY
BUYING.

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3M MODEL
1. MUDA

2. MURA

3. MURI

The three enemies of lean can be found in both production and office
processes.
When Japanese companies talk about waste they usually talk about the three
Ms; Mura, Muri and Muda. While most people who have had contact with
lean manufacturing will have been made aware of the 7 wastes and Muda
they often have not been introduced to Muri and Mura at all. Yet these
wastes are often far more important to tackle than Muda and often are the
underlying causes of the Muda that you observe within your processes.
While Muda is the non-value adding actions within your processes; Muri is
to overburden or be unreasonable while Mura is unevenness. I will discuss
these terms below.

MUDA:

Waste, can be defined in eight types, 7 defined by Toyota and ‘non utilized
skills’. These are: Defects, Overproduction, Waiting, Non-used Talent,
Transport, Inventories, Motion and excess processing. As Mnemonic device,
the first letters of these wastes form the acronym DOWNTIME

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MURI
Overburden, can result from Mura, and from removing too much Muda
(waste) from the process. When operators or machines are utilized for more
than 100% to finish their task, they are overburdened. This means
breakdowns when it comes to machines and absenteeism when it comes to
employees. To optimize the use of machines and make sure they function
properly, preventative- and autonomous maintenance can be implemented.
To prevent overworked employees, safety should be the focus of all process
designs and all standard work initiatives

MURA
Unevenness, can be found in fluctuation in customer demand, process times
per product or variation of cycle times for different operators. In production
environments with low-volume, high product variation, flexibility is more
important than in high-volume, low-product variation environments. When
Mura is not reduced, one increases the possibility for Muri and therefore
Muda. Mura can be reduced by creating openness in the supply chain,
change productdesign and create standard work for all operators.

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What is Waste?
Activity that no value but only add cost

 LEAN focuses on eliminating waste (non value adding activity ) to

reduce cost, which accomplished through EMPLOYEE
INVOLVEMENT and KAIZEN
 Lean tools provide a strainer that separates waste from value added.

What is waste in Lean Manufacturing?

A core principle in lean methodology is the removal of waste within an
operation.  And in any business, one of the heaviest drains on profitability is
waste. Lean waste can come in the form of time, material, and labor.  But it
may also be related to the utilization of skill-sets as well as poor planning. In
lean manufacturing, waste is any expense or effort that is expended but
which does not transform raw materials into an item the customer is willing
to pay for.  By optimizing process steps and eliminating waste, only true
value is added at each phase of production.  

Today, the Lean Manufacturing model recognizes 8 types of waste within an

operation; seven originally conceived when the Toyota Production
System was first conceived, and an eighth added when lean methodology
was adopted within the Western World.  Seven of the eight wastes are
production process oriented, while the eighth waste is directly related to
management’s ability to utilize personnel. Eliminating waste

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TYPE OF WASTE

1. BAD QUALITY /DEFECTS

2. OVERPRODUCTION

3. OVER PROCESSING

4. WAITING TIME

5. INVENTORY

6. TRANSPORTATION

7. MOTION

8. FAILING TO UTILIZE EMPLOYEES CREATIVITY

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1. DEFECTS
Defects impact time, money, resources and customer satisfaction.  
Examples of Defects within a manufacturing environment include lack of
proper documentation or standards, large variances in inventory, poor design
and related design documentation changes and an overall lack of proper
quality control throughout the process workflow. 

Formalized document control and design change documentation, thorough

and documented quality methods in all production phases and checklists that
have been audited to ensure proper adherence to the BOM are effective ways
to control defect waste.  And standardized work at each production cell or
point in the production line will help reduce this type of waste as well.

Specific Defect causes include:

 Poor quality control at the production level

 Poor machine repair
 Lack of proper documentation
 Lack of process standards
 Not understanding your customers’ needs
 Inaccurate inventory levels

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2. OVER PROCESSING
Excess processing is a sign of a poorly designed process.  This could be
related to management or administrative issues such as lack of
communication, duplication of data, overlapping areas of authority and
human error.  It may also be the result of equipment design, inadequate job
station tooling or facility layout.

Process mapping is a lean waste elimination tool that helps define an

optimized workflow that can eliminate over processing.  As a key method
within lean production, process mapping is not limited to the performance of
production tasks. It also includes reporting, signoff and document control.

Over Processing causes include:

 Poorly communicated customer specifications that leave doubt

as to exact requirements

 Rework to meet product specifications or quality requirements

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 Poorly planned work processes that cause extra steps along the
way

 Including more components or material than necessary for the

product to meet specifications

 Delivering higher precision dimensional components than

necessary

 Using materials with properties that unnecessarily exceed

specifications such as strength, hardness, purity etc.

3. OVERPRODUCTION
Lean Manufacturing, lean consultants often find that Overproduction has
the most significant impact on the success of the business. Anytime that a
part, assembly or final product is produced that is unable to be used or sold
due to lack of an (internal or external) customer, the business has created
Overproduction Waste. In addition to the direct cost to the company of
Overproduction Waste, Overproduction Waste can also contribute to
Inventory or Transportation Waste, compounding the destruction of value
for the business.
Overproduction Waste can happen when parts, assemblies or products are
produced which are not needed, but also when items are produced before
they are needed. In order to reduce overproduction waste that creates idle
inventory, firms move away from 'Just in Case' manufacturing to 'Just in
Time' manufacturing.

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Common causes of Overproduction include:

 Unreliable process
 Unstable production schedules
 Inaccurate forecast and demand information
 Customer needs are not clear
 Poor automation
 Long or delayed set-up times

4. WAITING
Waiting can include people, material equipment (prior runs not finished) or
idle equipment (mechanical downtime or excess changeover time).  All
waiting costs a company has in terms of direct labour dollars and additional
overhead costs can be incurred in terms of overtime, expediting costs and
parts.  Waiting may also trigger additional waste in the form of defects if the
waiting triggers a flurry of activity to “catch up” that results in standard
work not being followed or shortcuts being taken.

In many ways, waiting is the opposite of overproduction.  However, it can

be mitigated or eliminated with many of the same remedies.  Waiting is

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often the result of poor process design and can be addressed through proper
measurement of takt time and the creation of standard work.

Common causes of Waiting include:

 Unplanned downtime or Idle equipment

 Long or delayed set-up times
 Poor process communication
 Lack of process control
 Producing to a forecast
 Idle equipment
 Typical causes of Waiting Waste include:
 unplanned downtime
 production workloads
 not enough people
 people out unexpectedly
 poor quality built into the process
 ineffective internal communication

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5. INVENTORY
Inventory is considered a form of waste because of the related holding
costs.  This is true of raw materials, WIP and finished goods. Over
purchasing or poor forecasting and planning can lead to inventory waste.  It
may also signal a broken or poorly designed process link between
manufacturing and purchasing/scheduling. Lean Manufacturing does not just
focus on the factory but also requires process optimization and
communication between support functions.

Purchasing, scheduling and forecasting can have a version of standardized

work in the form of defined minimums and maximums and order points that
are mapped to the process flow and takt time.  Purchasing raw materials only
when needed and reducing WIP and eliminating or narrowing the definition
of “safety stock” will reduce this type of waste.

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Common causes of Inventory Waste include:

 Overproduction of goods
 Delays in production or ‘waste of waiting’
 Inventory defects
 Excessive transportation
 Unreliable supply chains
 Not understanding demand
 Long setup times
 Overcapacity in some areas and under capacity in others
 Poor monitoring systems

6. Transportation
Poor plant design can cause waste in transportation.  It can also trigger other
wastes such as waiting or motion and impact overhead costs such as higher
fuel and energy costs and higher overhead labour in the form of lift drivers
as well as adding wear and tear on equipment.  It may also result from
poorly designed processes or processes that have not been changed or
updated as often as required. Transport waste is when a product that is meant
to be used in manufacturing is moved or touched unnecessarily. Moving not
only costs money, but can also result in the increased risk of that product
being damaged, lost or misused

Value stream mapping and partial or full changes in factory layout can

reduce transportation waste.  This is a full documentation of all aspects of
the production flow and not just the mapping of a specific production
process.  This results in changes to reduce or eliminate transportation waste.

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Common types of Transportation Waste:

 Poor layouts – large distance between operations

 Long material handling systems
 Large Batch sizes
 Multiple storage facilities
 Poorly design production systems

7. Motion
When Lean Manufacturing approaches the issue of motion it is not related to
the physical movement of products that are used to create the end result
(Transport Waste), but rather the people or equipment that are used to create
physical products.

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Motion Wasted in lean manufacturing is the increased motion of machinery
or a person due to an inefficient manufacturing process. Wasted motion
increases the amount of wear and tear on both workers and machinery,
therefore decreasing its lifespan or ability to work on at a manufacturing site.
Not only does wasted motion cost money, it can also lead to unnecessary
accidents and injuries. as the location of parts, supplies and tools within the
space as well.  As an effective process map is developed, proper utilization
of the space can be captured with well designed and documented standard
work.

Common Motion Waste examples include:

 Poor workstation layout

 Poor production planning
 Poor process design

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 Shared equipment and machines
 Lack of production standards

8. Non-Utilized Talent
The eighth waste is the only lean manufacturing waste that is not
manufacturing-process specific.  This type of manufacturing waste occurs
when management in a manufacturing environment fails to ensure that all
their potential employee talent is being utilized.   This waste was added to
allow organizations to include the development of staff into the lean
ecosystem.  As a waste, it may result in assigning employees the wrong
tasks or tasks for which they were never properly trained.  It may also be the
result of poor management of communication.

By engaging employees and incorporating their ideas, providing training and

growth opportunities and involving them in the creation of process
improvements that reflect the reality they experience and the skills they
possess, overall operational effectiveness is improved.  The elimination of
this type of waste can improve all others.

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Examples of Non-Utilized Talent:

 Poor communication
 Failure to involve people in workplace design and development
 Lack of or inappropriate policies
 Incomplete measures
 Poor management
 Lack of team training

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