The 7 Types of Waste

1. Defects: Errors take time to fix and usually require added funds and time to remanufacture the product. This should have been done right the first time.

Some of the reasons behind having defects are:

• Poor quality control
• Processes that are lacking in standard
• Customer needs not met/lack of understanding needs

2. Overproduction: Excess product being manufactured, whether or not needed.

• Production in case of emergency
• Producing to meet a forecast
• Faulty automation
• Long set up time between productions

3. Waiting: This is the time spent waiting during the work processes.

For example, this could be waiting for approval or because you ran out of material or a machine broke down. This could be due to any number of reasons, including:

• Being short staffed
• Poor communication
• Poor work processes
• Unbalanced workloads

4. Transporting: Otherwise known as excessive movement of product, which doesn’t add any value and wastes time. So moving the product to another location could be easier if you could map out the flow of the product and timeframe.

5. Inappropriate Processing: Here is where high tech equipment is used when a a simpler tool would be sufficient. The high tech equipment doesn’t add value and actually diminishes your profits.

6. Unnecessary Inventory: This is also what happens when you overproduce and add waiting to the mix. Excess inventory takes up space, uses up material, increases lead-time, increases delays, and is a hazard in general.

7. Excess Motion: This is bending, stretching, walking, lifting and reaching that is done unnecessarily. Having excess motion increases job-related accidents. A more thoroughly thought-out work process or better ergonomics should be designed and implemented.

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The 7 Wastes

Overproduction: This is when you manufacture a product that might not get used right away; you are manufacturing it on spec that you will need it. This is a tremendous amount of waste in storage costs, spending too much in material when it isn’t necessary, not to mention manpower. The goal is to only schedule and produce what is needed and can be shipped out and sold immediately.

Defects: Can be very costly as having to remanufacture a product that has already been made incorrectly can really affect your company’s bottom line. These unnecessary costs also include having to re-inspect products and additional work that doesn’t add value to the product that should have been correct in the first place.

Transportation: This is waste in the movement of material that doesn’t add value to the product. This happens when process layout is not good; for example, they are too far in distance between operations/tasks in the processes. Multiple storage locations due to overproduction could also lead to transportation issues.

Waiting: This is any idle time that is wasted in waiting or if the person doing the process is slow and the machine involved keeps running its cycles. If the processes that are interdependent are not synchronized, waste will occur in time and production costs.

Inventory: This is inventory that is considered excess stock, and work that has yet to be completed that is in excess of the required. Continuous flow is needed so that unnecessary inventory does not accumulate.

Motion: This is any motion of a person or equipment that does not add value to the end product. This is due to poor layout that makes excessive bending, walking or reaching when working the processes.

Over-Processing: This is putting unnecessary effort or more into a product than is valued by the customer. For example, painting or polishing unseen areas is considered waste because it is deemed not important to a customer if the area is unseen. To avoid this a clear specification of acceptable standards is necessary.

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Transport: Remember if it is not adding value to your product or service, it is waste. So moving materials or moving the product itself that is not required is considered waste. The primary reason is because the more you move, there is an increased chance for damage or injury.

Waiting: In business as in life, any kind of waiting is considered waste. If a staff member’s hands are at a standstill, that is a waste of that resource. There are many reasons this could happen, some of which are unbalanced workloads, more instruction needed due to staff shortages, or poorly designed work processes.

Motion or Movement: Any movement of a staff member that is not required to get the job done is major waste. This would include unnecessary bending, lifting, reaching, walking, turning or kneeling. Furthermore, if there is any adjustment that has to be made before production can take place, then something is wrong with the design of the process. If the adjustment does not add value, the adjustment takes away valuable production time.

Overproduction: Producing too much product is never a good idea and a big form of waste. Now that you have excess product, you need a place to store it. You will have to rent a storage space or warehouse. But what if that excess product doesn’t sell? Now you are stuck trying to sell it at a discount, which means loss of profits. Also affected is cash flow, because of the materials and manpower you had to pay for to make the excess product.

Extra Processing: Any processing that does not add value to your product, especially when it is a result of outdated or inadequate technology or communications. If necessary packaging is not included in the original processes, or if customer doesn’t require excess packaging because it affects the quality of the product and it is still done, this is major waste.

Inventory: Inventory itself does not add value. You may need it to manage shortages between demand and production, but inventory itself does not add value. In fact, inventory takes up space, financial resources, and the quality of your product could become compromised. In fact, inventory covers up sins that should be examined closer.

Defects: If you have to go back and fix a defect or do a correction, that is a waste. It should be done right the first time, and every time thereafter. That is the purpose of both Six Sigma and Lean Six Sigma and their tools.

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