STM Quality Limited 7 Wastes TOTAL QUALITY MANAGEMENT 7 Wastes ©©ABSL Power Solutions STM Quality Limited 2007 Waste STM Quality Limited How often have you used the expressions: “That was a waste of time!” or “That was a waste of money!” or “That was a waste of effort!” © STM Quality Limited Wasted Time STM Quality Limited Just imagine if we could collect all the time together that we have wasted in the past How much time would that be? © STM Quality Limited Wasted Money STM Quality Limited Just imagine if we could collect all the money together that we have wasted in the past How much money would that be? © STM Quality Limited Wasted Effort STM Quality Limited Just imagine if we could collect all the effort together that we have wasted in the past How much effort would that be? © STM Quality Limited The Problem With Waste STM Quality Limited The problem with wasted time, money & effort is: When it’s gone… - it’s gone! © STM Quality Limited Eliminating Waste STM Quality Limited So what can we do to eliminate waste? We first need to identify what is & is not waste, then we can look at ways of eliminating or at least reducing waste. © STM Quality Limited Identifying Waste in the Workplace STM Quality Limited Operational Activity Value added Operations Any process that changes the nature, shape or characteristic of the product in line with customer requirements e.g. Pressing, welding, heat treatment. This is where we make a profit! © STM Quality Limited Identifying Waste in the Workplace STM Quality Limited Operational Activity Non-Value added Operations Work carried out which is necessary under current conditions, but does not increase product value. e.g. Inspection, tool change, maintenance. This is where we make a loss! © STM Quality Limited Value Added and Non-Value Added operations STM Quality Limited The objective is to raise the ratio of Value added operations to non-value added operations and eliminate waste. OPERATOR TIME WASTE NON-VALUE ADDED VALUE ADDED ELIMINATE MORE TIME FOR OTHER ACTIVITIES NON-VALUE ADDED VALUE ADDED © STM Quality Limited 7W – The Elimination of Waste STM Quality Limited So, now we understand the difference in value added & non-value added operations, what are the benefits in eliminating all waste? • Reduced costs • Greater Capacity • Bottlenecks are identified © STM Quality Limited 7W – 7 Types of Waste STM Quality Limited 1 Over-production 2 Inventory 3 Transportation 4 Process 5 Idle Time 6 Operator Motion 7 Bad Quality © STM Quality Limited 7W – 1. Over-production STM Quality Limited Over-production Producing more than is needed hides a multitude of problems. Excessive set-up times, machine faults, risk of producing obsolete stock. © STM Quality Limited 7W – 2. Inventory STM Quality Limited Inventory Carrying stock attracts cost & storage problems. Storage leads to stacking, racking, sophisticated computers, bar coding & automation, all for an activity that adds no value to the product. © STM Quality Limited 7W – 3. Transportation STM Quality Limited Transportation This may appear unnecessary but does add value. Large transport is easily identified but small transport such as manual labour may not be so noticeable. These can be improved by changes to the work environment. © STM Quality Limited 7W – 4. Process STM Quality Limited Process Adds cost but no value - e.g.trimming & moulding to a level that is beyond the required standard adds extra time that customers do not want to pay for. © STM Quality Limited 7W – 5. Idle Time STM Quality Limited Idle Time Typically, waiting for products & services from preceding operations, waiting for work from their previous set-up or waiting for cycles to finish, or meetings to start. © STM Quality Limited 7W – 6. Operator Motion STM Quality Limited Operator Motion Typically, single handed operations where both should be used, stretching unnecessarily or awkwardly and walking between things. All of these take time or use time poorly, none add value. © STM Quality Limited 7W – 7. Bad Quality STM Quality Limited Bad Quality Rejects are always produced by systems and procedures created by management. If operators fail it is because the process allowed them to fail through inadequate training or because the process was not capable in the first place. © STM Quality Limited 7W – The Elimination of Waste STM Quality Limited So, now we understand the 7 wastes, we can: • Produce only what is needed; • Carry only essential stock; • Use transportation more wisely; • Produce work to the standard required; • Plan our production processes; • Put our efforts to the best possible use; • Train to make quality work every time! © STM Quality Limited