Did you know about the  Waste ?

To produce sooner, faster or in greater quantities than the absolute customer demand. Overproduction discourages smooth flow of goods or services and lead to excessive inventory. 

Over production

·         Costs money

·         Consumes resources ahead of plan

·         Hides inventory and defects

·         Utilizes space which makes it the biggest waste of the seven waste.

Inventory

Any raw material, work in progress or finished goods which are not having value added to them and is not directly required to fulfil current customer orders come under inventory.

Inventory leads to

·         High costs and damages

·         Extra storage space and resources

·         Hiding shortages and defects

 Motion

Movement of people. This becomes a waste when individuals move more than is necessary for the process to be completed. It becomes a waste as it

·         Interrupts production flow

·         Increase production time

·         Causes injuries/fatigue

Waiting

Refers to the periods of inactivity in a downstream process that occur because of an upstream activity does not deliver on time. Waiting results in

·         Stop/start production

·         Poor workflow continuity

·         Bottlenecks

·         Long lead times and delivery failures

 Transportation

Unnecessary movement of material. Transportation

·         Increases production time

·         Consumes resources and floor space

·         Increases work in progress (WIP)

·         Causes damage to products

 Over processing

Processing beyond the standard required by the customer.

·         Consumes resources

·         Increases production time

·         Can reduce life of component

Defects/Rework

Defect is a component which the customer would believe unacceptable to pass the quality standard. Defects

·         Add costs

·         Interrupts the schedule and consumes resources

·         Reduces consumer confidence