Over the last several decades, we have learned a lot about building cars efficiently, and profitably, from Toyota. The Toyota Production System (TPS) has come to be known by the term "Lean" around the world. Toyota and other successful manufacturing companies have learned that Lean does not just apply to the value-adding employees on the shop floor. Since 80 percent of waste does not occur on the manufacturing floor, there is a lot of improvement needed in office and support function areas. What Toyota learned to apply to manufacturing in the 1990s has since blossomed to all types of organizations. Many companies in the service industry are adopting Lean techniques with great success. The same principles that are practiced on the shop floor are relevant for service companies, hotels, hospitals, banks, insurance, and construction companies. One of the key elements of Toyota's success is properly identifying problems and solving them. That's where the "8 Wastes" fit in.
Taiichi Ohno, considered by many as the Father of the Toyota Production System, realized that the work and how it was performed held many opportunities for improvement. His famous walks on the shop floor had trained him to look for waste. He decided that these forms of waste could be categorized into what he called the "Seven Deadly Wastes." Of course, as part of continuous improvement there is an additional waste that is very common among Lean practitioners, bringing the total to eight.
The following list will give an explanation of each waste, and how it applies in office or support function areas, as well as in service organizations. See if you have ever encountered things like this.
Overproduction - making more, earlier, or faster than the next process needs it
Motion - any movement that does not add value to your product or service
Inventory - anything in excess of one-piece flow
Transportation - moving people, materials and information around the organization
Waiting - waiting for man, machine, materials, information, etc.
Under-Utilized People - not tapping into people's education, skills, experience, knowledge, creativity, etc. (This is the additional waste mentioned above)
Defects - anything that needs to be scrapped, adjusted, reworked, etc.
Over-processing - additional effort that adds no value from the customer's viewpoint
If you have ever seen anything like this, you have observed waste. So the key is to learn how to identify waste so that we can reduce or eliminate it. How do you go about fixing these problems? There are many tools and techniques used in the Lean world to make this happen. More importantly, however, is that people in your organization become true Lean thinkers.
If you can't see the waste, you can't get rid of it. A quick, simple method to train people to recognize waste is to perform "Waste Walks." In a small group, walk with purpose, through an area noting waste and possible solutions. This will help promote discussion and a better understanding of your workplace. Never settle for the "we have to do it this way" answer. Be open-minded and realize that there is always room for improvement.
A catalyst with Profero, Inc., Tony provides professional consulting services to organizations focusing on implementing Lean Enterprise. Tony is trained and certified by the National Institute for Standards and Technology (NIST), U.S. Department of Commerce, in all elements of Lean. Relying on his diverse knowledge of business and creative techniques and applications, he is able to shape the Lean Tools of manufacturing into implementation processes for professional service organizations. He assists clients of all types and sizes in the implementation of Lean Enterprise.