Lean philosophy dictates anything that does not add value to a process or product, or that the customer is unwilling to pay for, is waste and should be eliminated. Each step of a process in the production of a good or service either adds value or waste to the end product. Ultimately, the elimination of waste increases an organization’s productivity and profit.
The 8 wastes within the Lean philosophy are discussed below along with office and manufacturing examples.
Waste
|
Definition
|
Office Example
|
Manufacturing Example
|
| Defect |
Work that contains errors or lacks something necessary |
• Incorrect information being shared
• Data entry errors
• Forwarding incomplete documents
|
• Scrap
• Rework
• Missing parts |
Overproduction
|
Producing more materials or information than customer demand
|
• Creating reports no one reads/needs
• Making extra copies
• Providing more information than needed |
• Producing more products than demand
• Batch process resulting in extra output
• Having a “push” production system |
Waiting
|
Idle time created when material, information, people or equipment is not ready
|
• Ineffective meetings
• Waiting for meetings to start
• Files awaiting signatures/approvals |
• Waiting for tools, parts, information
• Broken machines waiting to be fixed
• Raw materials not ready |
Not Utilizing Talent
|
Not, or under, utilizing the talent of employees
|
• Insufficient training
• High absenteeism and turnover
• Inadequate performance |
• Employing people in the wrong position
• Not fully training employees
• Missing improvements by failing to listen to employees |
Transportation
|
Movement of materials or information that does not add value
|
• Hand carrying paper to the next process
• Delivering unneeded documents
• Going to get signatures |
• Moving products around before shipping
• Moving product from different workstations
• Moving inventory around to take stock |
Inventory
|
Excess materials on hand that the customers or employees do not need right now
|
• Purchasing excessive office supplies
• Searching for computer files
• Obsolete files or office equipment |
• More finished products than demand
• Extra materials taking up work space
• Broken machines sitting around |
Motion
|
Movement of people that does not add value
|
• Searching for files
• Walking/reaching to get materials
• Sifting through inventory to find what is needed |
• Reaching to make adjustments
• Walking to get a tool multiple times
• Repetitive movements that could overwork/injure an employee |
Extra Processing
|
Efforts that do not provide value from the customer's perspective
|
• Unnecessary signatures on a document
• Making more copies of a document than will be needed
• Saving multiple copies of the same file in multiple locations
|
• Adding unneeded value to a product
• Using a more high-tech machine than needed
• Extra steps to correct avoidable mistakes
|