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7typeofwasteareknownbyallemployees
WhatExactlyisWaste?
Thesimplestwaytodescribewasteisas“SomethingthataddsnoValue.”Our
customerswouldnotbehappytopayforanyactionthatwetakethatdoesnotadd
valuetowhattheyactuallywantandnorshouldwebe.
InJapanesewasteiscalledMuda.Asmostoftheideasofleanmanagementare
generatedinitiallybyJapanese(TPSToyotaProductionSystem)veryoftentheword
Mudaisused.
WhyRemoveWaste?
YourcompaniesProfitisyoursellingpricelessyourcosts,nomatterhowyouthink
aboutthesellingpriceitisverymuchdictatedbythemarketnotbyyourself.Ifyou
chargetoomuchthenyourcustomerswillgoelsewhere,evenifyouchargetoolittle
youmaylosecustomersastheywillperceivetheremaybesomethingwrongwith
whatyouareoffering.Thereforetheonlywayyouhavetoimproveyourprofitsareto
reduceyourcosts;thismeansremovingallelementsofwastefromyourprocesses.
Audit|OperationsCoordination|7/13/2015Page74
7typeofwasteareknownbyallemployees
TTransportation
IInventory
MMotion
WWaiting
OOverproduction
OOverprocessing
DDefects(rework)
Audit|OperationsCoordination|7/13/2015Page75
7typeofwasteareknownbyallemployees
PoorlayoutexacerbatesTransportwasteismaterial
transportationwastesmovementthatisnotdirectly
associatedwithavalueadding
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