From Clutter to Clarity: Streamlining Your Processes by Eliminating the Eight Types of Lean Waste

Welcome to industrial mastery. In this article, I will be going to discuss what are the 8 Wastes in lean manufacturing, How to identify the wastes, and how to eliminate them to improve process efficiency.

The lean manufacturing process improvement methodology provides tools and techniques to eliminate waste in lean manufacturing.

What is waste?

In general, waste can be described as anything that does not add value. In the context of manufacturing, waste is more precisely any cost or effort that contributes to the transformation of raw materials into a finished product.

In industrial applications, waste can take many forms. Although waste is usually associated with inefficiencies in labor, time, and materials, poor design, underutilized worker skills, and inefficient procedures can also create waste in industrial settings.

It is also referred to as Muda. Muda is a Japanese word. It was primarily derived from Toyota Production System(TPS).

Muda is part of Kaizen(Continuous improvement) tools, but it is widely popular among people because it is the easiest to recognize and tackle. Eliminating waste is the way to decrease your costs and therefore improve productivity and profit; this is one of the aims of lean manufacturing.

"The most dangerous kind of waste is the waste we do not recognize.” – Shigeo Shingo

The 8 Types of Waste in Lean Manufacturing

There are mainly Eight types of waste found in lean manufacturing processes.

1. Defects – Imperfection in quality 

2. Overproduction – Making too much, or too soon.

3. Waiting – Time wasting for the next step in the process.

4. Non-utilized human potential – Not used skills, and talents

5. Transport – Unnecessary movement of product and material.

6. Inventory – Excess products & materials not being processed.

7. Motion – Unnecessary movement by people, machinery, and equipment.

8. Extra Processing – Non-value-adding activities in the process that are unnecessary

1. Defects:-

A defect is defined as anything that the consumer did not want. Defects are product or service attributes that necessitate manual inspection, repair or rework at any point in the value chain. Defects can be identified before your product or service reaches the consumer by inspection of the product or services or post-consumer in the form of warranty returns.

Defects can occur due to a variety of factors. These factors can include 

• customer requirements not being met
• Purchasing low-quality raw materials 
• Insufficient training and work instructions
• Weak Product design 
• Poor process controls 

    Defects can occur in any type of process. Elimination of all defects is not possible, but we can try to prevent and reduce the defects by improving product design, effective training programs, and standardized work practices.

2. Over-Production:-

Overproduction means making more products than the next process or end customer needs. Overproduction is called the worst waste because it usually creates a lot of other waste. For example, overproduction leads to excess inventory, which leads to wasted movement and transportation.

This Overproduction Waste can be due to:

• Long setup times, lead to the desire for long production runs
• Poor understanding of customer needs
• Producing for a forecast as opposed to having inventory ‘pulled’ as it’s needed
• Product design changes while existing designs are in the process
• Badly implemented automation

Best Practices for reducing Overproduction Waste in Lean Manufacturing First off using TAKT Time find the rate of manufacturing activities as per customer demands and based on that ‘working from the end customer back’ so that all production benefits the end customer first. Getting to a ‘pull system’ from finish to start can eliminate virtually all overproduction waste. You can see however how you’d need to do things like eliminate setup times and bottlenecks so that your workflow is flexible from end to end.

3. Waiting:-

This type of waste refers to when a product or WIP item is not moving or being processed because of slowed or halted production in one step of the production chain. while a previous step is completed. 

This usually occurs when 

• material flow is poor, production cycle times are too long, and distances between work centers are too great.
• unplanned downtime
• production bottlenecks and not balanced production workloads
• setup times that are too long
• producing a forecast instead of a pull system
• not enough people
• people out unexpectedly
• poor quality built into the process
• ineffective internal communication

To reduce or eliminate Waiting Waste include:

• redesigning processes to ensure even production flow or even single piece flow in response to the manufacturing process ‘pull’
• standardizing instructions, training, and processes
• Developing multi-skilled/flexible human resources so that people can respond quickly and be re-tasked to other areas as demand changes. Non-utilized human potential refers to the failure to fully utilize the skills, knowledge, experience, and creativity of employees within an organization. It occurs when employees are not given opportunities to contribute their ideas, expertise, and abilities to their fullest potential, which can result in decreased productivity, poor quality, and a lack of innovation.

4. Non-utilized human potential:-
Non-utilized human potential refers to the failure to fully utilize the skills, knowledge, experience, and creativity of employees within an organization. It occurs when employees are not given opportunities to contribute their ideas, expertise, and abilities to their fullest potential, which can result in decreased productivity, poor quality, and a lack of innovation.

Examples of non-utilized human potential include:

• Employees who are not given opportunities to learn and develop new skills, or who are not encouraged to share their ideas and suggestions for improvement.
• Employees who are not empowered to make decisions or take ownership of their work, result in a lack of engagement and motivation.
• Teams or departments are not working collaboratively, leading to duplication of effort and inefficient processes.
• Failure to provide adequate resources, tools, or training to employees, hinders their ability to perform their job effectively and efficiently.

To reduce non-utilized human potential waste, organizations should focus on creating a culture that values employee engagement, development, and continuous improvement. Here are some specific strategies that can help:

• Empower employees
• Provide training and development
• Encourage collaboration
• Solicit feedback
• Recognize and reward excellence

By implementing these strategies, organizations can reduce non-utilized human potential waste and create a culture of continuous improvement that drives greater efficiency, effectiveness, and innovation.

5. Transport:-

It refers to the unnecessary movement of materials, products, or equipment within a facility or between facilities, which adds no value to the product or service being produced. Transport waste can result in increased lead time, higher costs, and decreased efficiency.

Examples of transport waste include:

• Excessive material handling:- Moving materials more times than necessary or over long distances, resulting in increased lead time and higher labor costs.
• Inefficient facility layout:- Poor facility layout can lead to unnecessary movement of materials, products, or equipment, resulting in decreased efficiency and increased costs.
• Multiple handling:- Moving a product from one container to another, or loading and unloading a product multiple times during production, can result in damage and increased lead time.
• Long transportation distance:- Transporting materials or products over long distances, results in higher transportation costs, increased lead time, and potential damage to products.

To reduce transport waste, organizations should focus on the following strategies:

• Optimize facility layout: Review facility layout and make changes to minimize the distance and time required to move materials, products, and equipment.
• Implement pull production: Use a pull production system to produce products only when they are needed, reducing the need for excess inventory and unnecessary movement.
• Use standardized containers: Use standardized containers to minimize the need for multiple handling and reduce the risk of damage to products.
• Implement just-in-time delivery: Use just-in-time delivery to minimize transportation distance and reduce lead time. 

By implementing these strategies, organizations can reduce transport waste and increase efficiency, resulting in cost savings and improved quality of products and services.

6. Inventory:-

Inventory waste refers to any activity or process that does not add value to the final product or service, and can be found in various stages of inventory management. Here are some examples of inventory waste:

• Overproduction: This occurs when a company produces more inventory than it needs. Overproduction leads to excess inventory, which can tie up capital and take up valuable space in the warehouse.
• Excess inventory: This is inventory that is not used efficiently. This can be caused by inaccurate demand forecasting or ordering too much inventory at once. Excess inventory can lead to increased holding costs, obsolescence, and waste.
• Waiting: This occurs when inventory is not available when it is needed. Waiting can occur when inventory is held in the wrong location or when there are delays in the production process. Waiting  leads to decreased efficiency and increased lead times.
• Defects: This occurs when inventory is damaged or unusable. Defects can be caused by poor quality control or mishandling of inventory. Defects lead to increased waste and decreased customer satisfaction.
• Motion: This occurs when inventory is moved unnecessarily. Motion can be caused by inefficient warehouse layouts or inefficient picking processes. Motion leads to decreased efficiency and increased labor costs.
• Obsolescence: This occurs when inventory becomes outdated or unusable due to changes in technology, consumer preferences, or other factors. Obsolescence can lead to increased waste and decreased profitability.
• Stockouts: This occurs when a business runs out of inventory and is unable to fulfill customer orders. Stockouts lead to lost sales, decreased customer satisfaction, and increased lead times.

Reducing inventory waste is a key focus of lean management, as it can help businesses improve efficiency, reduce costs, and increase profitability.

Inventory management involves several key tasks, including:

• Forecasting demand: This involves predicting how much inventory will be needed to meet customer demand.
• Reordering inventory: This involves placing orders with suppliers to replenish inventory that has been sold or used in production.
• Tracking inventory: This involves keeping track of inventory levels, locations, and movements.
• Controlling inventory: This involves implementing policies and procedures to ensure that inventory is used efficiently and effectively.

Inventory management is a critical function of many businesses, as it can impact a company's profitability, customer satisfaction, and cash flow. Effective inventory management involves balancing the need to have enough inventory on hand to meet customer demand while avoiding excessive inventory that can tie up capital and lead to waste.

7. Motion:-

Motion waste refers to any unnecessary movement or activity that does not add value to the final product or service. It is a type of waste that is commonly identified in lean manufacturing or lean management approaches.

Motion waste can occur in various stages of a process, from production to delivery, and can lead to decreased efficiency and increased costs. In a manufacturing context, for example, motion waste can occur when workers need to move between different workstations to retrieve materials or tools, leading to unnecessary walking, bending, or reaching. This can result in decreased productivity, increased risk of injury, and longer lead times.

In other contexts, such as office work or service industries, motion waste can refer to activities that involve excessive movement or physical strain, such as walking to a printer, searching for documents, or carrying heavy items. This can lead to fatigue, stress, and decreased job satisfaction.

To reduce motion waste, businesses can implement various strategies, such as optimizing the layout of workstations or facilities, automating tasks that involve physical movement, improving communication and coordination among workers, and providing ergonomic equipment or training. By reducing motion waste, businesses can improve efficiency, reduce costs, and create a safer and more pleasant work environment.

8. Extra Processing:-

Extra processing is a type of waste in lean manufacturing that refers to any unnecessary work or steps taken during the production process that does not add value to the final product. This can include actions such as adding extra features or components to a product that the customer may not want or need, or performing additional quality checks that do not actually improve the product's quality.

Extra processing can be costly for a company, as it requires additional time, labor, and resources that could be better spent on more valuable activities. It can also lead to delays in production and increased lead times, which can negatively impact a company's ability to meet customer demand.

To reduce extra processing waste, companies can use lean manufacturing principles to identify and eliminate any unnecessary steps in their production processes. This may involve streamlining workflows, reducing complexity, and improving communication and collaboration between different teams and departments. By eliminating extra processing waste, companies can improve their efficiency and productivity, reduce costs, and provide higher-quality products to their customers.

In conclusion, understanding and identifying the eight types of lean waste can help organizations to streamline their processes, reduce costs, and increase productivity. By implementing lean principles and continually seeking ways to eliminate waste, companies can create more value for their customers and achieve long-term success.