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7/27/2019 Why Reduce Waste
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Identification of Waste
Input(Resources)
Transformation Output
EnergyPeople
Capital
Water
Materials
Tools
ProductsServices
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Purpose of Waste
Educate supplier of the evils of waste What
Where
Why Steps to reduce and/or eliminate
Show improvement potential that exists Improve the processs value added
content
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Identification of Waste
Input(Resources)
Transformation Output
EnergyPeople
Capital
Water
Materials
Tools
ProductsServices
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Defining Waste
Webster: to consume carelessly
squander
fail to take advantage
uncultivated area
junk
worthless residue
loss energy
grow weaker
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Definition of Waste
Anything that doesnt add value to the
process
Anything that doesnt help create
conformance to the customers
specifications
Anything your customer would be unwilling
to pay you to do
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Understanding Waste
Identification and elimination of waste isthe central focus of a lean system
It is dependent on the understanding andinvolvement of all employees.
Successful implementation requires allemployees to be trained to identify andeliminate waste from their work areas
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Understanding Waste
Waste exists in all work andat all levels in the organization
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Understanding Waste
Waste: Anything other than the minimumresources
Equipment and tooling Direct and indirect labor
Material
Floor space
Energy
Absolutely necessary to add value to the product!
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Identification of Waste
Types of Waste:
Inventory
Overproduction
Correction
Materials and information movement
Processing Waiting
Motion
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Waste of Inventory
Symptoms
Complex tracking systems Extra storage and handling Extra rework/hidden problems Paperwork/documents
Stagnated information flow High disposal costs Obsolete material / landfill In-process packaging High utility costs
Root Causes
Product complexity Incapable processes Unleveled scheduling Poor market forecast
Unbalanced workload Unreliable supplier shipments Inadequate measurement Misunderstood
communications Reward system
Definition: Any supply in excess of customer requirements necessary
to produce goods or services just-in-time
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Inventory Hides Problems!!
Inventory Hides Waste!!
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Why We Want To Reduce Inventory
1. Interest expense associated with working capital: Requirements to produce goods:
People, materials, facility, know-how, customers An organization + working capital
Working Capital = Cash + Inventory + Accounts Receivables Accounts Payables
- collect faster- defer payments
- reduce inventory
Benefits of reducing inventory in working capital: Save interest expense Free up cash for investment
2. The greater the inventory, the greater the handling: Forklifts, bins, containers, indirect labor to move/store the inventory Administrative effort and cost to control the inventory (losses, locating and
counting)
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Why We Want To Reduce Inventory
3. Inventories deteriorates, causing more scrap and rework: Metal rusts Lubricants dry out Materials accumulate dirt
3. Inventory takes up space: Adds cost to heal, light, and insurance
Facilities should be used for Value-added activities (i.e. production rather thatwarehousing)
3. Guiding principles of lean manufacturing: Elimination of buffers makes problems surface and forces organization to
address and resolve problems Leads to need for:
Pull systems
Quick die setup Manufacturing organized by product rather than process Good balancing Multifunctional workers Preventive maintenance Etc.
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Why We Want To Reduce Inventory
6. Reduce scrap / rework. When defect is detected, the entire inventory has
to be scrapped, reworked, and/or sorted.
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WASTE of Overproduction
Symptoms Excessive raw materials
Extra inventory Unnecessary work Excessive floor space utilized Unbalanced material flow Backups between departments Complex information management
Disposal charges Extra waste handling and
treatment High utility costs
Root Causes: Just-in-case logic
Misuse of automation Long process set-up Unleveled scheduling Unbalanced workload Over engineered
equipment/capability
Redundant inspections Lack of reuse and recycling
Definition: Producing more than needed
Producing faster than needed
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WASTE of Correction
Definition: Any supply in excess of customer requirements necessary
to produce goods or services just-in-time
Symptoms Rework, repairs and scrap
Added inventory costs Customer returns Loss of customer confidence Loss of business Missed shipments / deliveries Hazardous waste generation
Root Causes: Weak process control
Questionable quality Lack of error proofing Unbalanced inventory level Deficient planned maintenance Poor product design Customer needs not understood
Improper handling Poorly managed waste streams Inadequate training
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WASTE of Material and Information
Movement
Definition: Any material or information movement.
Symptoms
Extra handling Extra handling equipment Extra inventory Large storage areas Over-staffing Reduced quality
Extra paperwork Extra hand-offs Transport of disposal Excessive energy consumption Excessive emissions
Root Causes:
Mislocated materials Unleveled scheduling Unfavorable facility layout Redundant inspections Poor workplace organization and
housekeeping
Poorly managed waste streams Unbalanced processes Supply chain management
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WASTE of Processing
Definition: Effort which adds no value to the product or service from the
customers perspective.
Symptoms Unnecessary work
Extra equipment Longer lead time Reduced productivity Extra material movement Sorting, testing, inspection Inappropriate use of resources
Excess energy consumption Processing by-products
Root Causes: Product changes without process
changes Just-in-case logic Lack of communication Redundant approvals Extra copies, excess information Undefined customer requirements
stop-gap measures that becomepart of the process Lack of reuse / recycling
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WASTE of Waiting
Definition: Idle time created when people wait for machines,people wait for people, machines wait for people,
and machines waiting on machines
Symptoms Under-utilization of resources
Reduced productivity Increased in investment Idle equipment Large waiting / storage rooms Equipment running, not producing Unnecessary testing
Root Causes: Unbalanced workload
Unplanned maintenance Long process set-up times Misuse of automation Quality problems Unleveled scheduling Ineffective layout
Specialization
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WASTE of Motion
Definition: Any movement of people or machines
Symptoms Reduced productivity
Large reach / walk distances Longer lead times Excess handling Reduced quality People / machines waiting High energy cost
Inappropriate use of resources
Root Causes: Poor ergonomics / layout
Machine / process design Inconsistent work methods Poor workplace organization and
housekeeping Extra busy movements while
waiting
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Resource Conservation and
Pollution PreventionOpportunity Symptom (s) Root Cause (s) Corrective Action Suggestions
Energy High utility cost Outdatedtechnologies
Deficient plannedmaintenance
Need forconservationpractices
Useless energy intensive methodthan compressed air for cooling, partsmoving and agitating liquids
Repair Steam and compressed airleaks
Install motion detection switches orlighting systems
Water High water usage
High treatmentcosts
Poor process design
Incomplete jobinstructions
Re-circulate and reuse cooling water
Throttle back water valves on leakdetection and overflow rinse tanks
Find ways to reduce water usage
Install automatic valves to stop water
flow when equipment is not beingused
transportation High fuel cost
Smog andpollution
Lack ofconsideration onenergy andenvironmentalimpacts
Consider fuel consumption andtailpipe emission reductions whenoptimizing transportation logistics
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Resource Conservation and
Pollution PreventionOpportunity Symptom (s) Root Cause (s) Corrective Action Suggestions
Hazardous waste Hazardouswaste
Toxic emissions
High disposalcosts
High pollutioncontrol costs
Product design
Materialsspecifications
Lack ofconsideration ofenvironmentalimpacts
Utilize non-solvent-based coatingsand cleaners
Purchase only non-toxic materialsand products
Use a metals reclamation and washsystem to recover metals and reducewastewater effluent
Non-hazardouswaste
Excess materialusage
Excess storageand handling
High disposal
costs
Lack of reuse andrecycling procedures
Incomplete processinstructions
Insufficient
workplaceorganization
Inadequateeducation andtraining
Segregate waste packaging in-process to avoid manual sorting forrecycling
Utilize all materials in containers anddrums
Utilize only two-sided copyingRecover and use scrap materials inthe production process
Repair and reuse pallets
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Resource Conservation and
Pollution PreventionOpportunity Symptom (s) Root Cause (s) Corrective Action Suggestions
Product design Toxic emissions
Hazardous waste
High engineeredscrap rates
High disposal costs
High pollutioncontrol costs
Employeeexposures tohazardous materials
Product design
Materialsspecifications
Specifications ofvirgin materialuse only
Lack ofconsideration onenvironmentalimpacts
Provide suppliers with performance-based rather than prescriptivespecifications for products
Specify the use of recycled-contentin products
Consider environmental and humanhealth impacts of manufacturing, useand disposal during design stages
Design products for disassembly,recycle and reuse
EnvironmentalManagement
Poor planning
Lack ofknowledge of theprocess
Inadequatemeasurementsystems
Incomplete jobinstructions
Provide job instructions in the correctamounts of materials to use and
proper waste recycling procedures
Post information for employees toincrease awareness of the cost andenvironmental impacts of waste
Establish environmental policies andgoals. Integrate these goals into theemployee performance review and
compensation system
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