The 7 Types of Waste
Increasing cost pressures require continuous improvements in production productivity.
To improve productivity through Lean Production, it is essential to identify and eliminate waste (Muda).
When analysing processes, a distinction is made between waste and value-added activities. Waste is then further classified as avoidable or unavoidable. Once started, waste reduction becomes a process of continuous improvement (Kaizen) at all levels of the company.
Waste is defined as any step in a process that does not directly contribute to creating added value. This type of waste should always be eliminated.
Overproduction
Overproduction occurs when more is produced than the customer has ordered or than was originally planned. This results in excess inventory, which in turn generates additional costs.
Unnecessary Motion
When employees have to travel long distances to retrieve materials or tools, this is considered unnecessary motion. Unnecessary movement wastes valuable production time.
Waiting Times
Waiting times are periods of inactivity spent waiting for materials or for a process to be completed. During this time, the employee does not contribute to creating added value.
Transportation
When materials are moved within the production process, this is considered transportation. Transportation changes the location of the product, but does not add value to it.
Overprocessing
When a product is manufactured to a higher standard than the customer requires, this is considered overprocessing. This means that more work is performed than necessary to meet the required functionality.
Inventory
High levels of inventory in production, as well as stocks of raw materials and finished goods, result in capital costs. While inventory may provide a sense of security, it also increases the overall cost of the product.
Defects
When parts deviate from the required standard, they are considered defective. Defects require rework and inspection, resulting in additional costs.