So now it’s time to talk about waste. Muda. Non-value-added.
There are a few ways to list the 8 sources of waste but for the sake of simplicity, I will opt for using the DOWNTIME acronym.
- Non-utilized talent
- Excessive Processing
So here’s a few things you need to know about waste in any form.
- It rarely fits into any one of these buckets. For example, inventory is often found waiting to be processed and requires transportation to move it around sometimes by highly skilled workers. Inventory is also easy to overproduce just to make sure there’s enough and can contains defects waiting to be found. And for materials susceptible to environmental conditions, it can spoil rendering it, well, trash.
- Every value stream contains waste. I’ve never seen a single example of a waste-free stream. Often, we will map a value stream for the first time and find over 90% of the activities to be considered waste. Remember, value is defined by the customer, not the producer.
- Waste is money. It will pull profits out of your process if it is not eliminated. It will create safety, quality, delivery, and cost issues. It can make your customers very unhappy with you because it might not fit their definition of value.
- Sometimes waste is necessary. Usually it is not.
- Waste likes to hide. It can be wiley. Sometimes it can only be seen when you look for it. The good news is there are tried and true methods for identifying and eliminating waste. Plenty of ’em.
- Once you learn to see it, you will see it everywhere. Everywhere.
So how do we see waste?
We draw a map. A big, beautiful map. Using sticky notes. When we are finished with our map, we will see the waste.
It will be glaring. It will be ugly. But when we put our our waste goggles on and see it, we can begin to do something about it.
Up next: The Value Stream
Michael Bates has over 35 years’ experience as a Lean practitioner, including 30 years’ leading manufacturing, engineering, and service operations. He holds numerous Lean certifications and is a Six Sigma Master Black Belt. Michael is also certified in Project, Program and Portfolio Management.