Lean Methodology, The 8 Wastes

It is well known that we, as human beings, undoubtedly always waste resources, be it at your manufacturing setting or at home. Restaurants, hospitals, schools, airports, the list goes on. There is always waste being generated. But more than physical waste, we also always waste time, opportunities, and often, the chance of utilizing people's real talent. The LEAN methodology has brought to us the concept of the 8 wastes, and as incredible as it may sound, every single organization still has plenty of opportunities to start working on waste elimination right now. We would like to offer our captive audience a brief posting on the 8 wastes from what our experienced cast of consultants has learned about waste elimination.

Transportation: physically moving products and people around due to a poor flow of events. Have you found yourself going back and forth from the kitchen simply because the flow of your activities during dinner is all over the map?

Inventory: not only about perishable raw materials that have no need in being purchased ahead of time, but consider the cost of inventory - money sitting on shelves for no reason. The best inventory management practices are the ones focused on JIT (Just in Time).

Motion (or movement): this is about ergonomics, in any sense. Bending, lifting, turning. Layout is extremely important for process efficiency, besides of course, being critical of employees' health.

Waiting: for parts, information, human resources, raw materials, and equipment. In a manufacturing setting, waiting means a waste of money more than anything. In the services industry, it means that you can make it or break it when it comes to customer satisfaction.

Over-production: a classic waste due to inappropriate production planning. Making more than the process really needs creates waste in its purest form. The best practices on this waste elimination approach is the pull system (producing as required), something that Dell Computers and Toyota do effectively.

Over-processing: having too many non-value added steps in the process. Doing things for the sake of doing them. A great way of analyzing what your process current is (current state) and can be (future state) is the VSM tool (Value Stream Mapping).

Defects: an easily identifiable wasted resource, product, or service. It includes re-work, scrap, and corrections. Quality gurus such as Deming and Crosby have stated important advice about "doing it right the first time" and "aiming for zero defects."

Talent and Skills: making workers push the buttons is no longer acceptable. Delegating tasks without training is the road to failure. This is perhaps the most saddening of all wastes. Not utilizing the right talent and skills of the right people on the job is detrimental not only to the entire organization but most importantly, to those who in fact make your product or deliver your service.