Did you know that the concept of lean manufacturing was developed by Toyota in the 1930s to optimize their production processes? This approach identifies eight forms of waste: defects, overproduction, waiting, non-utilized staff, transportation, inventory, motion, and excess processing, which are common stumbling blocks in many manufacturing industries. Read on to understand each of the 8 wastes of lean manufacturing in detail and learn how you can transform your process by eliminating them.
8 Wastes of Lean Manufacturing
1. Transportation
Transporting items or information that is not required to perform the process from one location to another is a waste. This often happens because of poor layout or process design. For example, if products are moved from one end of a factory to another multiple times, it’s a sign of inefficient transportation.
2. Excess Inventory
Excess inventory refers to any supply greater than process requirements. This could include raw materials, work-in-progress (WIP), and finished goods inventory. According to a report by the National Association of Manufacturers, carrying costs of inventory typically total about 25% to 30% of their actual value on an annual basis.
The implications of excess inventory are significant – it ties up capital, occupies valuable storage space, and can lead to obsolescence if products are not sold in time. For example, a furniture manufacturer may end up with a surplus of table units due to overestimating market demand, resulting in occupied storage space and tied-up capital that could have been invested elsewhere.
3. Motion
Unnecessary movement of resources in a manufacturing context refers to any non-value adding physical motion of people, equipment, or materials. Such movements do not contribute to the final product and are considered waste in lean manufacturing. For example, if an assembly line worker has to walk a considerable distance to fetch parts or tools frequently, it signifies poor layout design and results in wasted time and energy. Similarly, if a forklift is used to move materials multiple times due to a lack of streamlined workflow, it leads to unnecessary equipment usage and increases wear and tear.
4. Idle Time (Waiting)
Idle time, often referred to as waiting, is the unproductive time period during which resources stand idle, awaiting the next step in the manufacturing process. It could be due to a variety of reasons such as equipment breakdowns, inefficient workflow design, or delays in material supply. According to a Harvard Business School study, 78.1% of American workers experience idle time on a weekly basis, illustrating the magnitude of this issue.
For instance, an assembly line worker waiting for parts to arrive or a machine standing idle due to lack of maintenance represents wasted time and productivity. This not only leads to longer production times but also increases overhead costs and reduces overall efficiency.
5. Overproduction
Overproduction in manufacturing refers to producing items ahead of their actual need or demand. This often stems from poor demand forecasting or a ‘just-in-case’ mindset, where excess products are produced to avoid potential shortages.
However, overproduction can have damaging effects on a manufacturing unit. Take, for example, a toy factory that produces more units than demanded. This could result in a surplus of unsold toys, tying up capital, occupying storage space, and risking product obsolescence if the toys are not sold in time. Hence, adopting a ‘just-in-time’ production approach, where items are produced as they are needed, can help mitigate the risks and costs associated with overproduction.
6. Underutilized Talent
Underutilization of talent is a significant waste in the manufacturing sector, where the skills, creativity, and experience of employees are not fully leveraged. Take, for instance, a skilled machinist assigned to repetitive, simple tasks while their ability to devise innovative machining techniques remains untapped. Or consider a quality control inspector with a keen eye for process improvement, whose suggestions remain unheard due to ineffective communication channels. Such underutilization can result in decreased productivity, lower employee satisfaction, and ultimately, hinder the growth potential of the manufacturing unit.
7. Expensive Defects
In the context of manufacturing, defects denote any product that fails to meet the set quality standards, leading to rework or even scrapping. For example, in an electronics assembly line, a defect could be a circuit board soldered incorrectly. This faulty board not only requires additional resources to correct but also delays the entire production line, creating a ripple effect of inefficiency. Worse still, if such defects go unnoticed and reach the customer, they can lead to dissatisfaction, returns, and damage to the company’s reputation. Therefore, a robust quality assurance system and a culture of ‘getting it right the first time’ are vital in lean manufacturing.
8. Excess Processing
Excess Processing refers to any effort that adds no value from the customer’s perspective. This often occurs when the quality is not understood, it is believed that more is better, or the processes are not clearly defined and standardized. For instance, unnecessary steps in product assembly due to poor design can lead to excess processing.
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To address these wastes, manufacturers can benefit from Shoplogix’s software, which helps you to eliminate waste on the shop floor by optimizing process steps and improving overall efficiency. By implementing Shoplogix’s solutions, manufacturers can reduce unnecessary costs, improve product quality, and demonstrate a commitment to sustainability.
Manufacturers can create a more efficient and productive shop floor environment, ultimately leading to cost savings, improved customer satisfaction, and a more sustainable business model.
Get in touch with us if you want to learn more about how our software can help your company eliminate waste and optimize manufacturing processes.
