Even if you are not an organization devoted to the Lean approach, it still pays to understand and be on the lookout for waste that can hurt the bottom line, slow production times, hurt customer satisfaction, and demotivate employees.
We can’t list every example of each type of waste, but perhaps considering a few will lead you to think about where you might find and eliminate waste in your organization.
Defects are probably the easiest type of waste to spot because your customers or downstream process owners will likely let you know. Examples include:
There are a couple of ways that the waste of waiting impacts organizations. In the first case, people or processes must wait because the path forward isn’t cleared for them to proceed. This might happen if you are waiting to start your meeting because the last meeting is still in the conference room. In the second case, people or processes are waiting for input from a prior step. For example, the doctor is ready to see the patient, but the medical assistant hasn’t finished getting the vitals and verifying medication. Other examples are:
There is obviously a need for some transportation of people and goods, so not all transportation is a waste, but a surprising amount of it is. The waste of transportation is often the direct result of one of the other wastes such as over production or inventory. Here’s what it looks like:
Motion is very much like transportation, but it involves unnecessary activities done by people. For example, if the server makes two trips to the table to bring out the order, when he could have done it in one, that’s the waste of motion. Here are a few other examples:
Overproduction happens when an organization creates a product before there is demand. Modern businesses have gone to great lengths to implement just-in-time manufacturing because overproduction is expensive and it balloons into other wastes like inventory and transportation. Here’s what it looks like:
The wastes of inventory and overproduction are two sides of the same coin. If a something is over produced, it ends up somewhere, requiring tracking and management, taking up space, and potentially even driving down product prices. It’s easy to envision a warehouse full of dusty items on shelves. Here are a few more ways to spot the waste of inventory:
Over processing occurs when organizations or people make a product, task, or process more complex than necessary to deliver value to the customer. For example, products or software applications that have features customers rarely use. It might also take the form of:
For a long time, discussion centered around only the prior seven wastes of Lean, but more recently, the waste of human potential has joined their ranks and with good reason. It is probably the most common and most damaging type of waste that organizations encounter. You see it when:
Once you understand the eight wastes of Lean, you will likely see example all around you. This isn’t a bad thing. Each waste you see is an opportunity for improvement that can be addressed to improve all sorts of performance measures.