The process of Lean Six Sigma helps an organization highlight the 8 main kinds of waste that delay or slow down the production process. Finding out what they are and getting rid of them enables an organization to streamline their methods of production and get the best results while saving plenty of time.

1. Waste as a result of defects

This is waste that comes from things like employing low skilled laborers to do a job, poor communication, incorrect information being as well as defective processes. Waste caused by defects can easily be dealt with by having an open line of communication, dealing with the correct information, employing skilled labor and updating equipment or tools used during work.

2. Waste as a result of overproduction

When an organization is overproducing, it simply means they are making more than they should at a fast pace. This causes an inventory mess as they will have a massive pile of stock that isn’t being used. An example of overproduction can be buying a bulk of perishable products and not using them all to a point where some of them rot.

The best way to deal with overproduction is by making sure that there is a balance between supply and demand. This requires the doors of communication to be open as well as an organization making sure that make, purchase and produce products based on accurate estimates.

3. Waste a result of waiting

This is the most common form of waste as it deals with things like waiting for deliverables, at queues or even transport. Waiting causes a great deal of stress and significant delays can make an organization and even people lose revenue. An organization can deal with waiting by hiring private transport for their deliverables and if someone is waiting for output on their co-worker, they can move on to other tasks.

4. Waste as a result of not using talent properly

This is often called the 8th form of waste, in addition to the original 7 developed at Toyota. An organization can have a huge amount of waste on their hands if they don’t use the talents of their team properly. Not performing well in this department brings about what is known as opportunity costs. An organization might choose to retain such talents over upgrading its infrastructure and being competitive in their field. The best way to deal with this is by making sure that every team member knows their jobs and has something they are working on which suits their talents.

5. Waste as a result of transportation

This is brought about by unnecessary placement and movement of materials or people from one place to another. One of the best ways of dealing with transport waste is removing any form of wasteful transportation. If a particular job can be done at home, for example, employees should be allowed to do it there. If a meeting can be held over Skype via video conferencing, let it be done.

6. Waste as a result of poor inventory management

Inventory waste is any materials that have no purpose or haven’t been used during the production process. An example of inventory waste can be ordering 70-floor tiles to upgrade a bathroom while only needing 35 tiles. Dealing with inventory waste is very simple, money should only be spent on things that their utility and purpose can be justified. Another way is by estimating the requirements and need accurately to avoid breaking the bank.

7. Waste as a result of motion

A bit similar to transport waste as it involves an unnecessary moment of equipment and people to various workflow processes. This causes things like a waste in resources, delays, and consumption of energy. The best way to bypass this problem is to have a plan in place, creating a checklist of all the tasks that need to be done does help in getting things done systematically.

8. Waste as a result of processing methods

This is where plenty of time, effort and money is spent on achieving something that brings very little result. An example of waste processing can be cleaning and washing a car for hours for no logical reason. An organization can prevent excess processing through a method called parametric estimation. Before any task is done, questions like how much effort is needed to get the job done need to be asked. If the effort needed is not clear, management can base it off tasks that are similar to it.

Conclusion

It is clear to see that the process of Lean Six Sigma helps an organization highlight the 8 main kinds of waste that delay or slow down the production process. When each of the 8 types of waste is dealt with the right way, an organization is able to streamline their methods of production and get the best results while saving plenty of time.

Like this topic? Learn more by downloading our free 7 Forms of Waste guide at:

You can also download some Powerpoint slides of the 8 forms of waste, based on the acronym TIM WOODS

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Identifying the Main Sources of Environmental Harm in Production

If you’re trying to be more green in your manufacturing processes, you need to start by identifying the main problems that cause harm in the first place. These will vary from one company to another, and they won’t be immediately obvious in every case. But with enough experience and enough collected data you should be able to build a list of the main issues sooner or later.

The Obvious Culprits

There are some things that pretty much every manufacturing facility is guilty of. Environmental pollution tied to smoke and other harmful particles can be easy to track down if you know where to look. In most cases, you’ll probably already know what you’re emitting in the first place. Make sure to check all venues for this air, water, soil, and anything else that might be relevant to your business.

Also, it might be worth investing in some more modern measurement tools to keep track of the situation in your facilities remotely. This can go a long way towards making your manufacturing processes greener in the long run, especially as you continue to expand your facilities.

Energy Consumption and Origins

Even if you’re not the one polluting the environment directly, that doesn’t mean you’re not contributing to its harm. A production facility typically uses a lot of power, especially in some specific industries. And this power has to come from somewhere however, most business owners don’t typically pay too much attention to the origin of their own energy.

And sure, green power can cost a bit more, depending on your supplier, but there are various hints that this trend is going to reverse in the not too distant future. As more people start to realize the harmful impacts of certain power production channels, we should see more attention being paid to clean, green energy, which will make it more available to everyone sooner or later.

Reducing Production Waste

Another point to consider is how much waste you’re creating in your typical production run. Sometimes the number might be startling, especially if you’ve never done any analysis on it in the past. Production waste can come in all shapes and sizes, and sometimes it boils down to using your resources more efficiently and not squandering them.

Many business owners make the mistake of getting too comfortable in their situations, believing that they have no reason to optimize the resource utilization of their plants. And when you crunch the numbers in the long run, the effects can be quite frightening.

Packaging and Transportation

If you’re producing physical goods, it’s also a good idea to check how much harm you might be contributing to the environment with your packaging and transportation practices. This can be difficult to measure in some cases, especially if you’re relying on external partners for that, but you should do your best to evaluate the situation and figure out ways to reduce your impact on that front.

Sometimes, that alone can have the biggest potential impact on your contribution to the environment. And it’s a good idea to keep it in check in the long run as well, because it’s a factor that can change a lot over time.

Recycling Options

Last but not least, try to consider some more environmentally friendly ways to get rid of your waste. Recycling is becoming more accessible and widespread every day, and we constantly see new options on that front. Even if your waste can’t be recycled efficiently today, keep checking back you never know when you’re going to see the right kinds of advances on the market!

And when that happens, it’s important to seize it and implement it into your own workflow as quickly as possible. Improving your recycling practices will become increasingly more important in the long run.

Conclusion

Paying attention to all fronts can be difficult when it comes to reducing the environmental harm of your production facilities. But once you get started, it will become increasingly easier to identify the true sources of harm, and you’ll get better and better at getting rid of them. And before you know it, this will be one of the main points of your work. Which is not a bad thing at all it means that your company is ready for the future!

If you’d like to learn more about Lean Six Sigma and the Environment, check out this FREE online course >>>

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There are a series of benefits associated with standardized work using lean. When used properly, it can be a very effective tool in your arsenal. However, knowing the reasons as to why it should be implemented will also prove to be essential if we wish to get the best out of your approach. In order to help, we can spend some time examining three different benefits associated with it that may very well assist us in understanding why we may wish to use this tool.

1. It Provides a Sense of Consistency

If something is consistent, then it leads to greater efficiency, as well as reducing the levels of confusion that may surround a particular process. Without standardized work, there is virtually no chance of achieving the required levels of consistency. This can become a frustrating cycle of guesswork that can easily be avoided.

If there are no clear instructions of what to do or the order in which things should be done, then it leads to far too many questions being asked with no answers provided. Planning goals and targets without standardized work will result in additional errors and costly mistakes being made unnecessarily.

Think of it from this perspective: If a production line does not have a standardized approach, it would lead to disorganized production, unpredictable outcomes, lack of communication and products being finished at the wrong times in no clear order. With departments waiting for others to complete their part as people attempt their own approach, this will result in potential chaos and the end result would be erratic and the quality of the production line would vary.

2. It Becomes Easier to Identify Problems

When approaches and processes are standardized, it then becomes substantially easier to spot a problem and to then identify it at the earliest opportunity. However, if you fail to use a standardized approach, then time will be wasted. Professional approaches must determine if there is a problem, how to overcome it and ensure past problems are nullified.

When there is no clear path to success, there is too much room for guesswork and a wide margin for error. When there is this standardized approach, it then means you are instantly aware of when something goes wrong, how to tackle it and you also have a procedure that everybody involved can follow and refer back to if they have any doubts about the process. If a plan deviates from a standardized approach, then specific mishaps can be predicted and pinpointed. Productivity is all about reducing waste and improving efficiency.

3. The Ability to Sustain Improvements

Standardized work also makes it easier to sustain improvements, as everybody involved in the process is working from the same initial point. Also, when people are aware of the key steps to follow, and the order in which each step should happen, it means we can avoid unnecessary stress.

Conclusion

There are actually numerous benefits associated with using a standardized work approach for any company, regardless of how many staff, what industry, etc.  A standardized work plan leads to a smoother path for the company across each and every department. Some people mistakenly believe that using the standardized approach eliminates freedom of expression, but that is simply not true as this is not intended to be a completely confined approach but rather a framework for people to operate within while they have the freedom to make improvements that will then have a profound impact.

Standardized work will undoubtedly be of benefit, so failing to adopt this approach will only lead to unnecessary complications.

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Determining how well the processes in your organization are running can play a critical role in running things smoothly over an extended period of time. There are many factors that can play a role in the definition of a controlled state, and understanding their full range as well as the relationships between them can be highly beneficial to any serious leader.

The control chart is a tool developed by Walter Shewhart and extended significantly by various others through time which is meant to show whether processes in your organization are under control, and in cases where they are not. The control chart can help you pinpoint the exact sources of deviation.

Control Chart: Basic Concepts

Normally, you would use a control chart to track the performance of tools with a continuous rate of change. However, in some cases it can also be a useful tool for making more binary/discrete comparisons, such as testing against the value of some variable over an extended data set.

The control chart itself is a separate entity from the actual measurement tools used to capture data about the state of each process. You are typically given a lot of freedom in determining how that data is going to be monitored, and you should be familiar with the specific properties of the processes used within your organization.

Once you have your data collection in place, you can think about how you are going to represent it on a control chart. A typical control chart should have some fundamental components, although the exact style is going to vary from one company to another. You are also going to see variance between the different processes in your organization.

You should normally at least have a set of points representing the data you’re measuring. This will look similar to a typical graph plot. However, you are also going to plot the mean of those variables in your control chart. In addition to that, you should also be able to see your specific process limits in the chart.

Using Your Control Charts

When it’s set up correctly, a control chart can quickly show you the relationships between certain process variables and their corresponding appropriate limits. That way, you can tell at a glance if a certain process is under control, that is, if its parameters are within the intended limits. In cases of deviation, you will also see a clear indication of where exactly the problem occurs and how far the data is from expected values.

An important note in the use of control charts is that you are not just looking for deviations that stray too far away from the median. Other results can be interesting too, and a standard rule is to stop production when a certain number of data points in a row all fall on the same side of the average line, e.g. above or below it. You may see the number listed as 7 or 8 in some places, and you are probably going to have your own known optimal values for your organization as well.

Sometimes, certain levels of deviation may even call for a complete stop of your current production. The usefulness of a control chart comes in part from the fact that it can point out some problems in your production before they can be identified by other means.

This tends to work better when you have proper data collection practices in place to track the progress of your facilities over time. As a result, a control chart tends to improve in usefulness, as long as you are tracking everything correctly. As we mentioned above, a successful implementation of a control chart also relies on having a well-developed measurement system in place. The sooner you take a deeper look into that aspect of your organization, the better results you’re going to see.

Conclusion

The control chart is a seemingly simple tool, and it’s true that there aren’t any overly complicated concepts behind it. But once you’ve mastered its use, and you have additionally learned some auxiliary techniques that work in tandem with it, you should see some amazing results in the productivity of your organization and your ability to track the performance of processes.

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Drop shipping involves a retailer making an arrangement with a wholesale distributor to ship their product after a customer has purchased it. The retailer sells it, and the wholesaler distributes it with the retailer’s label on the item’s packaging. This is a mutually advantageous relationship in which both parties benefit. The wholesaler acquires more product sales and new outlets for retail. Similarly, the retailer benefits from the percentage they earn from each sale. A further advantage for the retailer is that they don’t have to concern themselves with the shipping or carrying of inventory. The wholesaler takes care of it all on their behalf. Today, we look at some of the advantages of drop shipping and how Six Sigma ideas can help you make the most of it.

Why is Drop Shipping Beneficial?

Drop shipping is beneficial as it does not require retailers to maintain an inventory. Not does it require them to handle shipping. They can simply buy at wholesale prices and sell directly to the customer at retail prices, with the distributor supplying product information as well as new products. Amazon, Alibaba, and Overstock all use drop shipping in their online operations. Using this method has helped them cultivate a prosperous online business presence with virtually no initial inventory investment required. By having wholesalers source and dispatch the items they sell, Amazon makes substantial revenue to dominate the online market.

When a retailer sets up a website to sell goods, customers buy the goods, paying the retailer plus any shipping costs. For example, a $10 item may necessitate $3 shipping. It’s then up to the retailer to contact the wholesale distributor, informing them of the details regarding the order. The wholesaler can then package and ship the item to the customer using the retailer’s label. The retailer pays the wholesale price of the product(s) and shipping while retaining a 30% profit. This is how sites like Amazon have managed to make billions of dollars.

Going Where No Retailer Has Gone Before

Certain markets regularly become flooded as multiple retailers try to woo customers with competing products. There is a way around this, though, and Amazon is a great example of ingenuity here. Moreover, Amazon has gone a step further than most as they are both retailers for external products and wholesaler for their own-branded goods. But not only that, Amazon is not just a retailer and distributor, but also a manufacturing and technology giant too. The AmazonBasics line of products aims to provide affordable alternatives to a vast array of everyday essentials. Everything from batteries and phone chargers to backpacks and fashion items. Using Six Sigma principles, they have managed to significantly streamline their manufacturing, distribution, and retail processes for their own-branded products. This affords them a substantial market advantage over competing vendors. Why pay more when you can pay less?

Supply Chain Management

Supply chain managers have a lot on their plate. Their work is often externally focused, requiring them to work with outside partners to source goods or parts to produce products. This is integral to the way modern retailing works. For wholesale distributors and delivery companies, supply chain managers source the inventory retailers require, selling it to them so that they can sell it on again to make a profit. Supply chain managers often work for large corporations, particularly online stores and retail giants like Alibaba and Amazon. They negotiate contracts with distributors to maintain inventory on in-demand goods. Using Six Sigma, you can make a real difference to your wholesalers and how you deal with them. This will help improve efficiency and increase revenue for both.

Improving Delivery Businesses with Six Sigma

As a retail supply chain manager, it’s up to you to decide which products you want to sell. Six Sigma uses raw data to make justifiable decisions about process changes. Without a strong plan to follow, you won’t make the most of Six Sigma strategy. Think about the market you are targeting. Make certain that the products you want to sell are in demand. Search engine analytics are a great way to shed light on what is trending, on which products and services people want. The more you know, the more prepared you are to drive successful change. The more data you have, the greater control you have over the value chain, allowing you to predict potential future demand.

It’s important to utilize reliable drop shippers to ensure success. Be wary, though, as there are plenty of charlatans out there masquerading as good drop shippers. If you chance upon a bad egg, get rid of it quickly, as they will cause more problems for you later. A reliable drop shipper demands lots of pertinent information to do their job. This is your golden ticket. You can expect them to ask for references from other suppliers as, remember, they want to benefit from the arrangement just as much as you do. Once you get going, we recommend applying tools like Root Cause Analysis and DMAIC as regular assessments of your business operations.

Additional Six Sigma Improvement Tools

If you keep running into similar problems, like missing product information and shipping alternative or defective items, apply Root Cause Analysis to identify the source of the issue. Similarly, DMAIC can help you take control of inefficiencies to improve your business processes. It can also help you locate sources of variation that lead to defective products using Analysis of Variance. Applying Lean principles will also help eliminate sources of waste such as over-processing and human error. Black Belt-led improvement projects can also actively seek out inefficiencies and replace them with innovative solutions. All these tools and techniques coalesce to make significant improvements across the board. Cultivating a Kaizen culture of continuous improvement is also a beneficial strategy to stay on top of these problems and ensure future success. This not only benefits the customer but, of equal importance, you as well.

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