Professional Documents
Culture Documents
Watch The Movie Understanding value and waste is at the heart of your company’s world
class transformation. This chapter explores the key concepts of value-
added and non-value-added activities.
1. What are some of the differences between Let’s look at a few examples of other non-value-added activities:
a value-added and a non-value-added
activity?
• Counting inventory
2. In your workplace, what are the most
common forms of non-value-added • Moving parts from one location to another
activities?
• Defects
• Overproduction
• Waiting
3
Do
Value and Waste
TRY IT OUT
4
Check
Value and Waste
B. Moving products
Watch The Movie - Value & Waste (Part 2)
C. Assembling a prod-
uct
Check Answer
5
Act
Value and Waste
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Value-added activities change, transform Check phase, what adjustments will you make in your workplace? What
or add features to information, materials
or the product for which customers are principles will you anchor in your company?
willing to pay.
6
Big Idea
World-class companies work to eliminate
defects from their processes. This frees up
resources that would otherwise be spent Chapter 2
Defects
correcting mistakes.
Plan
Defects
Watch The Movie One of the most common forms of waste is defects. Defects include:
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Shiego Shingo, a best-selling author and TPS Expert,
highlighted a key to minimizing defects when he
said,"The causes of defects lie in worker errors, and
defects are the results of neglecting those errors. It
follows that mistakes will not turn into defects if worker
errors are discovered and eliminated beforehand".
Shiego Shingo
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Do
Defects
TRY IT OUT
Information Defect
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Check
Defects
A. True
B. False
Check Answer
Maintenance Defect
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12
Act
Defects
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Defects include: Check phase, what adjustments will you make in your workplace? What
• Incomplete or inaccurate information principles will you anchor in your company?
• Materials or products that do not meet
specifications
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Big Idea
Eliminating overproduction from our processes
improves flow within a workplace and helps
reduce many other forms of waste Chapter 3
Overproduction
simultaneously.
Plan
Overproduction
Watch The Movie Overproduction occurs when we produce more product than is needed
within the near future. It is one of the worst wastes because it hides or
creates many other wastes. Overproduction prohibits the smooth flow
of material, making it highly costly to a manufacturing plant. It
increases other wastes like excess transportation, excess motion and
unused inventory.
2. What were the reasons that you created Overproduction wastes time and can slow down production of
more products than were needed?
important products and makes it harder to ship on time. The man hours
that were used to produce the excess products could have been used
to produce things that could be sold immediately. Sometimes
overproduction is caused by quality problems. If, for example, a
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company knows that it will lose a number of units along
the production process, the company may decide to
produce extra units to make sure that the customer’s
order is satisfied. Overproduction can occur anywhere in
the system, including the creation of excess information,
excess computer files or excess paperwork.
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Do
Overproduction
TRY IT OUT
• Is it an overproduction of information or of
materials?
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Check
Overproduction
Share what you and your co-workers identified as the root cause of the
Review 3.1 Check your understanding
with these questions about overproduction in your workplace. Discuss the real costs of allowing
overproduction.
this waste as well as the ideas you brainstormed about how to
A. True
B. False
Check Answer
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Act
Overproduction
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Overproduction is making more product Check phase, what adjustments will you make in your workplace? What
than is needed or making it long before it
is needed principles will you anchor in your company?
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Big Idea
Waiting creates no value so world class
companies work to eliminate it from their
processes. Chapter 4
Waiting
Plan
Waiting
Watch The Movie There can be few things in our lives as aggravating as waiting. We can
think of wait time from two perspectives: (1) from the worker’s point of
view, and (2) in relation to product flow.
Waste occurs when a worker is being paid while having to wait for
materials to be delivered, for a line stoppage to be cleared or for a
machine to process a part. The waste is not only paying employees to
do nothing but also lost income from products not sold.
2. What were the circumstances that 2. The cost of products that could have been produced and sold
occurred the last time you caused while waiting.
someone else to wait to perform their job?
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to be processed. Imagine a process that can only • Changeover
process one part at a time. If the process receives a
• Unbalanced work loads
batch of 10 parts the 10th part waits for the 9 parts in
front of it to be processed first. The 1st part waits for the • Long conveyance distances and long cycles
9 parts behind it to be processed before moving on to
the next step. If the process time is 6 minutes, then
there is 54 minutes of wasteful waiting time in a batch of
10.
• Defects
• Rework
• Batch production
• Equipment downtime
• Unscheduled maintenance
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Do
Waiting
TRY IT OUT
1. Go with your team to your workplace and analyze the most common
processes that you do. Look for the "hotspots" that may have caused
waiting in the past.
• When was the last time members of the team had to wait to
perform their job?
2. Once you have accomplished this, return to share what you have found
with your team.
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Check
Waiting
Question 1 of 4
Which is not one of the perspec-
tives that we use to analyze What was the root cause of this waiting?
waiting?
C. The perspective of
product flow What are the main costs of waiting in your workplace?
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Act
Waiting
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Waiting is time lost from useful activities Check phase, what adjustments will you make in your workplace? What
2. Waiting can cost the company money and principles will you anchor in your company?
product time in work-in-progress.
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Big Idea
World class companies discover and unlock
human potential.
Chapter 5
Non-Utilized KSA
Plan
Non-Utilized People
Watch The Movie There is so much potential in our organizations that is silently
imprisoned in cubicles and in closed workstations. Often, people's
knowledge, skills and abilities go undiscovered. This may be because
workers don’t tell anyone about their talents, because workers are not
given a chance to demonstrate their skills or because the company's
culture might not allow them to do things that are outside their normal
job function.
We are often surprised when we find out about the skills of other
people. These skills are often hidden and unappreciated until someone
THINGS TO CONSIDER asks about them. Let’s consider a few implications of fully
1. What skills are you naturally talented at? understanding worker’s hidden skills. If we thought everyone had
2. Do you feel that you able to fully employ hidden skills:
your talents in the workplace?
3. What new skills do you most wish to • We would ask people about their interests, hobbies, and skills more
develop?
often
4. Would you behave differently toward others
if you assumed that everyone had hidden
• We would give people more challenging assignments
skills and talents that were underutilized?
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• We would increase cross-training through the plant in an irregular pattern, some workers
could be overburdened while others may be starved for
• We would invite individuals with diverse skill-sets to
work.
form dynamic teams
TRY IT OUT
In your workbook, fill in the following three sections about yourself: (1) knowledge,
(2) skills and (3) abilities. Pick two of the lines to write something true about
yourself that people generally wouldn’t know. On the other, write a lie about
yourself. The object is to conceal which is a lie. Share what you write with the
group. The group attempts to guess which is a lie.
Once you have accomplished this, return to share what you have found with your
team.
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Check
Non-Utilized People
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Act
Non-Utilized People
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Find out what knowledge, skills and Check phase, what adjustments will you make in your workplace? What
abilities those around you have
principles will you anchor in your company?
2. We can underutilize ourselves and co-
workers and should continuously be
looking for new ways to improve the
efficiency of our work by discovering and
using hidden skills
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Big Idea
World class organizations save people energy
and resources by eliminating unnecessary
movement of parts, assemblies and Chapter 6
Transportation
information.
Plan
Transportation
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Transportation waste can be seen when components or
tools are not stored close to the point of use. Try
keeping a small amount of inventory near the production
area. This will avoid having to bring the product back and
forth from a warehouse. Using “milk runs” is another
good way to reduce transportation. This involves picking
up or delivering multiple products on one route. Instead
of making a trip for one purpose, pick up and of drop off
multiple items during the trip. This idea also works well
when dealing with deliveries from outside vendors.
TRY IT OUT
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Check
Transportation
Check Answer
36
Act
Transportation
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Transportation involves moving Check phase, what adjustments will you make in your workplace? What
information, parts or assemblies from one
place to another principles will you anchor in your company?
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Big Idea
World class companies keep only the
necessary levels of inventory on hand so they
are as efficient and cost-effective as possible. Chapter 7
Inventory
Plan
Inventory
Watch The Movie Inventory creates waste because it requires space for storage, it ties up
cash flow and it requires labor to move and to store. Further, the cost of
tracking the inventory and the amount of time spent sorting and
counting this inventory are also waste.
2. Sub-assembly inventory
1. What sorts of inventories do you deal with 4. Maintenance and repair parts inventory
in your workplace?
2. What are the largest inventories in your Tom Greenwood, Director of the University of Tennessee's Lean
company?
Enterprise Forum, said "Finished goods are products that we have
3. What portion of this inventory could be made that no one wants. Raw materials are products that we have
reduced without negatively affecting
operations? bought that we don’t need". As we add up the cost of our inventory, we
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must realize that we are actually viewing piles of money Raw Materials Inventory
trapped in our warehouse.
Raw component inventory is usually the largest inventory.
Finished Goods Inventory Most companies believe it is a necessity to carry days of
raw parts inventory. While there is a need to cover
Finished Goods Inventory is inventory that is ready to
vendor delivery time, additional inventory of raw
ship. Management must determine how much finished
components must be kept to a minimum.
goods inventory to carry. Minimizing Finished Goods
Inventory is optimal. Finished Goods Inventory is Office Supplies Inventory is often overlooked because it
generally the most expensive inventory because its cost is not directly related to production. Just like the other
includes labor, overhead and material consumed during forms of inventory, however, holding more office supplies
production. than necessary lowers the profitability of an
organization.
Sub-Assembly Inventory
40
Maintenance and Repair Parts Inventory
Due to critical situations that call for maintenance and
repair parts inventory, it is important that this stock be
well managed. Although you may never know exactly
when a major line down or machine issue will occur, you
can develop a preventative maintenance system that will
minimize these occurrences. Creating a preventative
maintenance program decreases the maintenance and
repair parts needed.
41
Do
Inventory
TRY IT OUT
42
Check
Inventory
A. Finished goods
B. Sub-Assembly
C. Raw materials
Check Answer
43
Act
Inventory
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Inventory is a form of waste that requires Check phase, what adjustments will you make in your workplace? What
labor and space to move, store, track and
count principles will you anchor in your company?
44
Big Idea
World class employees eliminate excess
motion to maximize their efficiency.
Chapter 8
Motion
Plan
Motion
Watch The Movie Motion is essential in order to get things done, whether it is loading and
unloading equipment, entering information into a computer or
assembling parts of a product. Excess motion is another silent form of
waste in production process. Sometimes the waste-causing activities
appear camouflaged as harmless tasks such as:
46
and product will begin to flow more efficiently. Eliminating
excess motion does not always mean eliminating the
entire motion. It could simply involve reducing the range
of the motion. By having tools, parts and information a
little closer to the working area, it will reduce the amount
needed. When reducing excess motion, small
improvements can add up to a big difference
“The only place that work and motion are the same thing
is the zoo where people pay to see the animals move
around” (Taiichi Ohno, Creator of the Toyota Production
System).
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Do
Motion
TRY IT OUT
48
Check
Motion
A. One room
B. Ten feet
C. Arm’s length
D. Walking distance
Check Answer
49
Act
Motion
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Motion is necessary, but may cause loss Check phase, what adjustments will you make in your workplace? What
of time. Excess motion is waste.
principles will you anchor in your company?
2. Excess motion is any motion that does not
directly improve the product your
customer wants.
50
Big Idea
World class organizations consider whether the
work they are doing is actually necessary and if
it adds value to the final product. Chapter 9
Excess Processing
Plan
Excess Processing
Watch The Movie Excess processing means to do more work than is necessary. We
have to be very careful when we look at this type of waste. We must
make sure that we are building the product to the specifications. An in-
depth look at current processes should reveal where the excess
processing exists.
1. Does every step of your process add value 2. Does the work add value to the product?
to the product?
2. What are the major tasks that you perform? 3. Is there a better way to perform the work?
What ways can you make them more
efficient? Let's look a little more closely at each of these questions.
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Is the work actually necessary according to the is not likely to either know or care. Excess processes
product specifications? need to be evaluated and eliminated.
When analyzing excess processing, we first need to Is there a better way to perform the work?
consider whether the work is actually necessary and if it
When focusing on eliminating waste of excess
adds value to the final product.
processing, you must always look for better methods to
• Is it part of the specification? produce your product.
• Does it increase the value of the product or If a machine is running a staking process and holds the
improve the function of it? parts for 10 seconds, can you get the same result if the
part is held for only 9 seconds? When molding product
• Does it make the product more appealing to the
in a 150 ton machine, can you get the same results out
consumer?
of a 100 ton machine? Many of the fixes in this area may
Does the work add value to the product? not be easy or inexpensive, but eliminating over
processing can be a savings by increasing throughput.
Imagine if in the automotive industry manufacturers
For example, one second reduction in cycle time from a
polished every piece of the car, not just the visible parts.
10 second cycle time to a 9 second cycle will increase
Certainly the car be more polished but the end customer
throughput in 8 hours by 320 parts. Over the course of
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250 working days it would net an additional 80,000 parts
in a year. Remember, this is a one second cycle time
reduction on one part.
54
Do
Excess Processing
TRY IT OUT
55
Check
Excess Processing
• How much more material could be sold if the time were saved?
A. Is the work actually neces-
sary? All of these things comprise the cost of excess processing. What is the
bottom line impact to the company over the course of a year?
B. Will this be faster than keeping
to the specifications?
Check Answer
56
Act
Excess Processing
THINGS TO REMEMBER Based on what you have discovered in the Do phase and learned in the
1. Over-processing causes waste by using Check phase, what adjustments will you make in your workplace? What
labor hours on tasks that do not add value
to the final product. principles will you anchor in your company?
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Thank You
Congratulations! You’ve completed this
DOWNTIME e-book.
Epilogue
Acknowledgements
Photos A special thanks to the following people who made this book
possible through their contributions of photographs.
Chapter 3 – Overproduction
Image of crayons courtesy of Pixel Perfect Digital. Used with permission under the Creative Commons attribution license.
Chapter 4 – Waiting
Image of boss speaking with co-worker courtesy of Srinivasan Murugesh. Used with permission
Image of chair wheels courtesy of Muriel Miralles de Sawicki. Used with permission.
Chapter 6 - Transportation
Image of forklift and rider courtesy of Carlos Chavez. Used with permission.
Chapter 8 - Motion
Image of industrial worker with shovel courtesy of Ian Beeby. Used with permission.
Any activities or actions that add no value to the product. Customers do not
want to pay more for non-value added activities, although non-value-added
activities often do affect the cost. Customers may pay for non-value-added
activities in time lost, frustration or money, but they would prefer not to.
Anything within a process that the end customer is not willing to pay for. Waste
is synonymous with non-value-added activities. There are eight major types of
wastes that form the acronym DOWNTIME. These wastes are:
Defects
Overproduction
Waiting
Non-utilized People
Transportation
Inventory
Motion
Excess Processing