The success of any organization is closely tied to the ability of its people to be both effective and efficient. While effectiveness is about doing the right things, efficiency speaks to performing in the best possible manner with the least resources; these two qualities will not just appear within your organization, they have to be deliberately cultivated.
Lean methodologies deal with methods and techniques to reduce eight wastes or non-value-added activities in order to be more efficient in serving the end customer. Wasteful activities are process steps that either the customer is not willing to pay for or are not critical to the creation of value for the customer. Elimination or reduction of these activities will result in tremendous savings for the business. It has been estimated that between 15% and 50% of typical companies’ resources are devoted to rework and non-value added tasks that could be avoided but usually, they are not even uncovered: they become hidden costs.
The first step towards cutting company costs is to uncover these hidden wastes and prepare an action plan to get rid of them as soon as possible.
Some waste exists in every system. From construction, manufacturing and assembly, to hospitality, healthcare, transportation, and social services, some waste is hidden within all processes. Identifying and eliminating these hidden wastes saves millions of naira every year for those organizations that have embraced and continuously use Lean assessments. These wastes fall into eight basic categories: Defects and rework, Over-production, Waiting, Non-utilized resources, Transportation, Inventory, Motion, and Excess Processing. As listed here, the 8 wastes are most easily remembered using the acronym “DOWNTIME”.
Defect and rework waste happens when we do not have robust preventive systems that include Mistake-Proofing, or Poka-Yoke, techniques. When we cause a defect or an error and pass it on to the next operation, or worse, pass it on to the customer, we are accepting rework as part of the process. We lose money when something is constructed, manufactured, assembled or serviced twice, while our customer will only pay us once for the goods or service.
Over-Production waste occurs when we construct, manufacture, assemble, or build more than what is needed. We make something just-in-case instead of Just-In-Time (JIT). Inaccurate scheduling, long lead times, long changeovers and not being close enough to our customers to understand their changing needs, leads us to longer production runs. We worry that our customer might need more while we have to suffer from the associated cost of unsold goods or services.
Waiting wastes come from people, processes or partially finished goods sitting idle while waiting for instructions, information or raw materials. Poor scheduling, poor vendor support or communications and inaccurate inventories cause processes and people to come to a halt and cost valuable time and profit.
Non-utilized resources waste is sometimes referred to as an additional waste. Waste from non-utilized resources typically refers to a failure to utilize the full potential of people in a team or organization, but it can also refer to the failure to use any sort of resource effectively, whether the resource is tangible or intangible, human or non-human. Tangible resources that are not used to their full potential are obvious forms of waste in the supply chain. Assets are associated with measurable costs that can be calculated to determine the specific results from underutilized assets or even assets that lie dormant for extended times. Intangible resources are sometimes harder to measure but can be equally costly. The waste of human resources can also take multiple forms. It can be costly to fail to utilize the full creativity and talent of people throughout the team or organization. When creative ideas and solutions remain untapped, the opportunity cost – the benefits that are foregone as a result – can be virtually impossible to measure
Transportation waste occurs when people, product, equipment or information are moved more often or further than needed. During multi-step processes, materials and people are moved from process to process that are separated by distance and/or time. Instead of processes being sequential or positioned next to each other, they are far apart and require forklifts, conveyors or other moving devices to be re-positioned for the next step in a process. All of these movements add no value to the process or product.
Inventory waste is any material in excess of the one-piece required for the next step in the process and can be found in any of three states-raw materials, work-in-progress, and finished goods. Unless the product is being worked on and having value added to it, or it is on its way to the customer, it is inventory. Excess inventories hide many unwanted conditions. Excessive inventory may cover up quality problems like rework and defects, manpower and/or production scheduling problems, excessive lead times and supplier or vendor problems. It is very expensive to carry excessive inventory which requires capital to be tied up in interest payments. Excessive inventory reduces ROI on manpower and raw materials.
Motion waste is the unnecessary movement of people, product or equipment that adds no value to a process. Workers walk back and forth from the work area to supply, around unneeded equipment or perform redundant motions that can be eliminated to speed up a process. This can be one of the most frustrating wastes for workers and management. The lost time and production rob most processes of opportunities to function efficiently and make the employees work harder. While most processes are not designed to have motion wastes in them, it is one of the first wastes to creep in and cause disruption.
Excess processing is doing anything more than the minimum required to transform the material into an acceptable product. It is an effort that adds no value to the service or product from the customer’s viewpoint. After all, it is the customer, either internal or external, that needs to be satisfied. Clarifying customer requirements and changing the manufacturing or service orders causes different costs. If caught too late, this leads to re-work or even the rejection of shipped goods. This includes processing beyond customer values or taking extra steps that are not required.
By the end of this course, you should be able to:
- specify the value as defined by the customer
- identify the value stream—the core set of end to end processes that deliver value to the customer
- make the process and value flow
- let the customer ‘pull’ as needed so that work is performed only to meet a clear demand
- pursue perfection through continuous improvement.
These principles appear to be able to be applied to any industry or sector because results depend more on the design and structure of the particular training programme, and the discipline needed to implement it, than the type of business.
Learn tools to be taught: Associated with each of these principles is a set of reasonably straight forward tools such as value stream mapping, Opportunities for improvement, Root cause analysis and ‘5S’ that enable people to apply these principles to their work. As noted above all of these concepts and tools have to be understood and embraced by the staff that do the work. In this sense, the workplace cultural aspect (‘how we do things around here’) of lean is just as important as the actual tools and methods. It promotes staff engagement and a facilitative role for managers.
Who should attend?
- All team leads, supervisors, unit heads, managers, professionals and productions staff
This course consists of the following modules;
- CURRENT CONDITION: Define
- Process Management for Projects
- Project Management Basics
- Management and planning tools
- Business results for projects
- Team dynamics and performance
- CURRENT CONDITION: Measure
- Process analysis and documentation
- Probability and Statistics
- Collecting and summarizing data
- Probability distributions
- Measurement system analysis
- Process capability and performance
- CAUSE ANALYSIS: Analyze
- Exploratory data analysis
- Hypothesis testing
- COUNTER MEASURES / MAKE PERMANENT: Improve & Control
- Design of Experiments
- Statistical Process Control
- Implement and validate solutions
- Control Plan
- Post Assessment
OrganizerOAK Interlink Company
LocationNo 70B Olorunlogbon Street, Idi-Iroko
Lagos, + Google Map