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10 wastes

Waste is considered as everything that does not act value to customer, they are 9 types of wastes:

Overproduction

Overproduction means to produce products that are more than customer requirement, products changed very quickly, if the product produced finally cannot be sold out, they are mostly likely to be scraped, this creates a big impact to the profit margin of the company. It takes more space, manpower and computer hardware to keep these additional products, these also waste a lot of resources.

Waiting

Waiting creates longer cycle time and in return increases the inventory level making more space for storage and more manpower to manage the inventory. If the cycle time is long, any problem found in the product will involve more products/ sub-assemblies to rework or scrap, thus creating higher rework cost. The long cycle time creates long cash turn-over that can greatly harm cash flow of the company.

Transporting

If the layout is not well designed, a lot of transportation will be required to transport raw material to assembly and to ship out, more machinery will be required to transport material, semi-assemblies or products around, this not only involve in space, manpower but also on capital expenditure on these transportation equipments. The transportation create delays the process that will increase cycle lead-time.

Inappropriate processing

Doing things with inappropriate process not only delays the process but increases the manpower and overhead.

Unnecessary Inventory

Setting up the right amount of inventory helps smooth the material flow but unnecessary inventory increases storage space, more manpower to handle and more computer hardware, all these will create more capital wasted.

Unnecessary /excess motion

Doing any action or work requires certain motion, if the motion is more than required, it will waste manpower.

Defects

It is often higher cost to rework than to make, if the defects rate is high, a lot of resources will be required to rework on them. If the defects were found at the customer side, it will involve a lot of transportation cost and may involve claims from customers. At worse it may damage the image of the company, thus creating high loss.

Cannot reuse or recycle

Resources in the earth are limited, it the material or product produced cannot be reuse or recycle, the material or product will be very costly. Nowadays, it products cannot be reuse or recycle, the scrap charges will be high.

Over-management

Over-management occurs when too many levels or too many issues need management involvement. As the cost for management is high, if there are too much management, it is a great waste.

Over information

When information is more than enough, it will waste a lot of manpower, computer hardware and stationary to keep these information. This is also very costly and is a great waste.

Posted By: Kenneth Yu Category: Quality Date: 11 May 2014

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10 waste

Update on: 11 May 2014