8 Wastes of Lean | Examples | TIMWOODS | DOWNTIME | PDF

What are the 8 Wastes of Lean?

→ The 8 wastes of lean are fundamental concepts in Lean Manufacturing.

→ By eliminating these wastes we can eliminate inefficiencies in production processes.

→ They are non-value-adding activities and consume resources but don't give any benefit to products and services.

→ Our customer is not willing to pay for non-value-added activities.

→ The eight lean wastes are transportation, inventory, motion, waiting, overproduction, over-processing, defects, & skillset.

Table of Contents:

• What are the 8 Wastes of Lean?
• Acronym of 8 Lean Wastes
• What is Waste in Process?
• How to Get Rid of 8 Lean Wastes?
• Examples of Eight Wastes in Lean Manufacturing
• Transportation
• Inventory
• Motion
• Waiting
• Overproduction
• Overprocessing
• Defects
• Skills sets
• The Benefit of Elimination of Wastes
• Conclusion

Acronym of 8 Lean Wastes:

→ The acronym of 8 lean wastes is TIMWOODS or DOWNTIME.

⏩TIMWOODS:

1. T = Transportation
2. I = Inventory
3. M = Motion
4. W = Waiting
5. O = Overprocessing
6. O = Overproduction
7. D = Defects
8. S = Skill Set

⏩DOWNTIME:

1. D = Defects
2. O = Overproduction
3. W = Waiting
4. N = Non-utilized Talent
5. T = Transportation
6. I = Inventory
7. M = Motion
8. E = Extra processing

What is Waste in Process?

→ Waste in a process refers to any activity or element that consumes resources but does not add value to the final product or service from the customer's perspective.

→ People usually think that the scrap is the waste.

→ But we also need to consider different types of activities as a waste such as time, resources, and money.

⏩Would you like to pay to the operator if:

→ They sat idle waiting for a delivery,

→ For the rework processes that had to be undertaken because the machine was incorrectly set or

→ Even for storing your product for three months before it was delivered to the store?

→ These all activities are included within the cost of your products, either inflating the price you pay or reducing the profit of the company.

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How to Get Rid of 8 Lean Wastes?

→ For Eliminating these wastes requires a systematic approach.

→ It focuses on continuous improvement, process optimization, and employee engagement.

→ We need to identify all wastes and implement any of the below methods for product or service improvement.

→ Value Stream Mapping helps to determine the actual sources of wastes and contributes towards reducing them.

⏩Different Methods for Waste Removal are:

• Elimination
• Replacement
• Prevention
• Facilitation
• Detection
• Mitigation

Examples of Eight Wastes in Lean Manufacturing:

→ Now we will learn in detail.

⏩Eight Wastes in Lean Manufacturing are:

1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Overproduction
6. Over-processing
7. Defects
8. Skills sets

01. Transportation:

→ Transportation is the unnecessary movement of materials or products to different locations.

→ Also we can say that the unnecessary flow of information in case of service or system.

→ Transportation does not add any value to the product.

→ It directly impacts our financial indicators and decreases the business's profitability.

→ We need more people and equipment such as trucks or forklifts to perform unnecessary movement of materials.

→ Unnecessary movement increases lead times and can result in damage or degradation of products during movement.

⏩Reason of Transportation Waste:

• Poor Layout and Facility Design
• Unbalanced Production Flows
• Inefficient Routes and Scheduling
• Lack of Real-Time Information
• Over-Handling
• Inconsistent Demand and Forecasting

⏩Examples of Transportation:

→ Sending unsold products from the store to the warehouse back.

→ Ordering parts or products from distant suppliers when closer options are available.

→ Moving parts from one station to another.

→ Moving equipment from one construction site to another.

02. Inventory:

→ Inventory means holding more materials, parts, or finished products than is needed.

→ It blocks capital and increases storage costs.

→ Inventory has to be stored, it needs space, it needs packaging and it has to be transported around.

→ It has the chance of being damaged during transport and becoming obsolete.

⏩Reason of Inventory:

• Overproduction
• Inaccurate Demand Forecasting
• Large Batch Sizes
• Lack of Flow Synchronization
• Product Variability and Customization
• Obsolete or Expired Inventory
• Inefficient Storage and Warehouse Management
• Cost Reductions through Bulk Buying
• Unclear Production Priorities

⏩Examples of Inventory:

→ Excess raw materials than required

→ Excess Work-in-progress (WIP)

→ Finished goods stored in warehouses

03. Motion:

→ Motion is the unnecessary movement of people, machines, or items that do not add value to the final product.

→ It decreases productivity.

→ Excessive movements of parts from the machine start point to the actual work start point.

→ All of these unnecessary motions cost us time, and money and cause stress on our employees and machines.

→ Unnecessary motion causes inefficiency and can lead to worker fatigue.

⏩Reason of Motion Waste:

• Poor Workspace Layout
• Excessive Walking
• Unorganized Workstations
• Poor Process Flow
• Manual Handling of Materials
• Lack of Training or Standard Operating Procedures (SOPs)
• Poor Workflow Design
• Unnecessary Inspections or Movements
• Long Distances Between Workstations or Departments

⏩Examples of Motion Wastes are:

→ Workers walking back and forth between workstations

→ Poorly designed workspaces

→ SOP is not defined for the process of operation

→ Software that requires multiple clicks to perform the final operation

→ Workers searching for missing tools or instruments.

04. Waiting:

→ Waiting is idle time when resources are not efficiently utilized.

→ Different resources are people, equipment, or materials.

→ It is any type of delay in information flow or material flow that leads to decreased efficiency and increases cost.

→ People and processes often must wait because the next step in the process isn’t ready.

⏩Reason for Waiting Waste:

• Unbalanced Production Process
• Machine or Equipment Downtime
• Lack of Materials or Components
• Slow Decision-Making or Approvals
• Waiting for Inspections or Quality Checks
• Long Setup Times
• Manual Data Entry or Paper-Based Processes
• Inefficient Handovers

⏩Examples of waiting are:

→ Waiting for a delivery from a supplier

→ The truck is not available for delivery

→ The Semi-finish part is not available for assembly

→ Inspection is pending, etc.

05. Over Production:

→ Overproduction means producing more than requirements.

→ Also it includes producing too early than the required time.

→ It leads to excess inventory.

→ If we produce products in bulk based on the forecast then we have to maintain more inventory.

→ More inventory leads to charges more operating costs.

→ However, forecasts are commonly imperfect or change based on the market condition.

→ It creates a negative impact on business.

⏩Reasons for Overproduction are:

• Inaccurate Demand Forecasting
• Batch Production and Economies of Scale
• Unbalanced Production Line
• Long Setup and Changeover Times
• Push Production Systems
• Fear of Stockouts
• Fluctuating Customer Demand
• Incentives for High Output
• Product Variety and Customization
• Inefficient Inventory Management
• Customer Pushback or Cancellations

⏩Examples of overproduction are:

→ Production is more than the customer's demand.

→ Huge meals in restaurants.

→ Hospitals with more beds than the community needs.

→ Overstaffed retail stores

06. Over Processing:

→ Overprocessing is performing more work or adding more features than the customer's requirements.

→ In other words, over-processing is additional work in the process that is not required.

→ Overprocessing is also known as extra processing.

→ Rework or repair of product is the most common example of overprocessing.

⏩Different Reasons for Overprocessing are:

• Lack of Understanding of Customer Needs
• Inaccurate Specifications
• Using More Advanced Technology Than Needed
• Excessive Quality Checks
• Lack of Process Standardization
• Fear of Defects or Customer Complaints
• Overuse of Automation or Technology
• Excessive Documentation or Paperwork
• Unnecessary Rework or Refinement
• Lack of Training and Awareness

⏩Examples of Over Processing are:

→ If Microsoft Excel is enough for data processing we use mini-tab for data processing.

→ An X-ray is sufficient and we go for an MRI.

→ If the lathe machine is sufficient for operation and we operate with the CNC machine.

→ Complex purchasing processes with multiple approval levels.

→ Before sending mail to the manager we read it twice or thrice.

07. Defects:

→ Defects means producing faulty products or products with errors that require rework, repair, or scrapping.

→ Defects hide many other problems.

→ Quality errors that cause defects and cost us more than our expectations.

→ Every defective item requires rework or replacement.

→ We have to work on defect prevention instead of defect detection.

→ Implementation of Poka-Yoke systems and automation can help to prevent defects.

→ We also implement standard operations procedures (SOP) and training to ensure that the correct methods are used.

→ The defect is directly related to the Cost of Poor Quality.

→ We have to bear the cost of the defects and scraps and it impacts our profitability.

⏩Different Reasons for Defects are:

• Poor Process Design
• Inadequate Training of Workers
• Inconsistent or Poor Material Quality
• Machine Malfunctions or Poor Maintenance
• Human Error
• Inadequate Quality Control and Testing
• Time Pressure From Customer
• Environmental Factors
• Incorrect or Incomplete Specifications
• Inadequate Change Management

⏩Examples of Defects are:

→ Software with bugs is a defect that has to be rectified.

→ Misdiagnoses in healthcare that lead to unnecessary tests or treatment.

→ Products that are shipped to the wrong address are also a defect.

→ Manufactured items that don’t meet the customer’s specifications.

08. Skill-Set (non-utilized talent) Waste:

→ Skill set waste or non-utilized talent means failing to fully leverage the skills, ideas, and creativity of the workforce.

→ If we are not using our employees to their full potential, talents, or skills then it is a loss for us.

→ Skill-set or non-utilized talent is newly added in lean waste.

→ Operators are close to their processes.

→ They can easily identify problems or opportunities on the shop floor.

→ But the operators may never be asked for their input.

→ That is nonutilization of talent.

⏩Different Reasons for Skill-Set Waste:

• Lack of Employee Involvement in Decision-Making
• Insufficient Training and Development
• Misalignment Between Skills and Tasks
• Limited Career Advancement Opportunities
• Overemphasis on Credentials or Job Titles
• Low Employee Engagement
• Mismanagement of Team Collaboration
• Resistance to Employee Suggestions

⏩Examples of Skill-Set are:

→ Intentionally we are not including any competent employee in the project.

→ Not including shop floor operator in shop floor problem-solving team.

→ Not collecting any suggestions from shop floor workers for improvement.

→ Unnecessary administrative tasks.

The Benefit of Elimination of Wastes:

• Increase the productivity of production processes
• It creates a safer working environment for all employees
• Reduce downtime
• Increased Efficiency and Effectiveness
• Cost Reduction
• Improved Quality
• Enhanced Productivity and Performance
• Improved Employee Morale
• Customer Satisfaction

Conclusion:

→ Addressing and eliminating the eight wastes identified by lean methodology.

→ Identification and elimination of eight lean wastes are essential for improving operational efficiency.

→ By working on these wastes, we can streamline processes, reduce costs, improve product and service quality, and increase customer satisfaction.

→ We can implement a culture of continuous improvement, teamwork, and problem-solving by lean methodology.

→ That ensures businesses with sustained productivity and innovation.

→ It helps to drive competitiveness and the long-term success of the business.