Service Waste

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Manufacturing and Service waste
The original seven muda are:
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Transport (moving products that is not actually required
to perform the processing)
Inventory (all components, work in process and finished
product not being processed)
Motion (people or equipment moving or walking more than
is required to perform the processing)
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Waiting (waiting for the next production step)

Overproduction (production ahead of demand)
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Over Processing (resulting from poor tool or product
design creating activity)
Defects (the effort involved in inspecting for and fixing
defects)
Service Waste
The Biggest Challenge in Service: Learning to Recognize Waste
• Waste 1: Overprocessing – adding more value than your
customer would pay for. Do you know what your customer
wants? Have you allowed NVA to creep into the process?
• Waste 2: Transportation – excessive movement of
materials or information. Paperwork loop-backs are
especially wasteful. Cut the hand-offs in half and you cut
the queue time in half.
• Waste 3: Motion – excessive movement of people. Multiple
computers or drives, multiple keystrokes, poor office
setup or workstation arrangements.
• Waste 4: Inventory – WIP exceeding customer needs
causes NVA waiting, longer lead times. Look for piles of
requests, callers on hold, people in line. Excess WIP is
often overproduction.
• Waste 5: Waiting time between processes. Since much
service work is invisible, mapping techniques are essential
for finding delays. [See Diagram: Process Map]
• Waste 6: Defect – anything that does NOT meet customer
needs. Missing information, missed deadlines.
Misinformation in a process results in re-work. Mapping
shows how corrections are done.
• Waste 7: Overproduction – production over what is needed
for immediate use.
One redefinition of these wastes for service operations by
Bicheno and Holweg (2009) is as follows:
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Delay on the part of customers waiting for service, for
delivery, in queues, for response, not arriving as promised.
The customer’s time may seem free to the provider, but
when she takes custom elsewhere the pain begins.
2. Duplication. Having to re-enter data, repeat details on
forms, copy information across, answer queries from
several sources within the same organisation.
3. Unnecessary Movement. Queuing several times, lack of
one-stop, poor ergonomics in the service encounter.
4. Unclear communication, and the wastes of seeking
clarification, confusion over product or service use,
wasting time finding a location that may result in misuse
or duplication.
5. Incorrect inventory. Being out-of-stock, unable to get
exactly what was required, substitute products or
services.
6. An opportunity lost to retain or win customers, a
failure to establish rapport, ignoring customers,
unfriendliness, and rudeness.
7. Errors in the service transaction, product defects in
the product-service bundle, lost or damaged goods.
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