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The
Seven Manufacturing Wastes -
A Primer
1.
Over-production is highly costly to a
manufacturing plant because it prohibits the smooth
flow of materials and actually degrades quality and
productivity. Producing
more than what can immediately be sold (or shipped)
tends to result in excessive lead
times
and a build-up of work-in-process (WIP)
inventories. This, in turn, leads to a late
detection of any quality defects, a decoupling of
work centers, poor internal communications and
utter confusion on the plant floor. The solution:
schedule and produce only what can be immediately
sold/shipped, and improve machine changeover/set-up
capability.
2.
Waiting. Whenever goods are not moving or being
processed, the waste of waiting occurs. In most
facilities, products spend more time in queue (a
non-value-adding activity) than they do in actual
production (value-added). Much of a product's
lead
time
is tied up in waiting for the next operation,
usually because material flow is poor, production
runs are too long and geographical distances
between work centers are too great.
3.
Transportation is wasteful because the movement
of goods between work centers and the
double-handling of work orders do not add value for
the customer. They do, however, add significant
cost to the organization. Excessive movement and
handling cause damage and excessive distances
between work centers inhibits communication and
feedback on corrective action. Finally, material
handlers must be used to transport the materials --
another organizational cost that adds no customer
value.
4.
Excess processing refers to the use of large,
complex machines rather than small, flexible ones.
Inflexible machines tend to result in poor plant
layout because preceding and subsequent operations
are located far apart. In addition, they encourage
high asset utilization (over-production with
minimal changeovers) in order to recover the high
cost of this equipment. The solution: invest in
smaller, more flexible equipment, if possible, and
create manufacturing
cells
(or work cells).
5.
Excess inventory tends to hide problems on the
plant floor, which must be identified and resolved
in order to improve operating performance.
Excessive inventories
increase lead
times,
consume productive floor space, delay the
identification of problems and inhibit
communications. By achieving a seamless flow
between work centers, many manufacturers have been
able to slash inventories and the costs associated
with them, and improve customer service.
6.
Excess motion refers to the ergonomics of plant
personnel at the work center. Excessive bending,
walking, stretching and lifting is physically
tiring, wastes time, presents
a safety hazard and lowers productivity. Jobs with
excessive motion should be analyzed and redesigned
for improvement with the involvement of plant
personnel.
7.
Product quality defects directly impact the
bottom line and include scrap, rework and the costs
associated with quarantining inventory,
reinspection, rescheduling and capacity loss. Not
surprisingly, the total cost of defects is often a
significant percentage of total manufacturing cost!
Through employee involvement mechanisms and a focus
on Continuous Process Improvement (CPI), there is a
huge opportunity to reduce defects at many
facilities.
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