Chapter 10

Reduction of seven wastes

The core idea of lean manufacturing is actually quite simple: relentlessly work on eliminating
waste from the manufacturing process. Waste is defined as any activity that does not add value
from the customer’s perspective. According to research conducted by the Lean Enterprise
Research Centre (LERC), fully 60% of production activities in a typical manufacturing operation
are waste – they add no value at all for the customer. The good news is that just about every
company has a tremendous opportunity to improve, using lean manufacturing techniques and
other manufacturing best practices. Techniques that enable us to deliver higher quality products
at significantly lower costs.

Lean Manufacturing:

Lean manufacturing is a methodology that focuses on minimizing waste within

manufacturing systems while simultaneously maximizing productivity. Lean manufacturing is
based on a number of specific principles, such as Kaizen, or continuous improvement.

Five principles of lean manufacturing:

1. Identify value from the customer's perspective. Value is created by the producer,
but it is defined by the customer. In other words, companies need to understand the value
the customer places on their products and services, which, in turn, can help them
determine how much money the customer is willing to pay.

The company must strive to eliminate waste and cost from its business processes so that the
customer's optimal price can be achieved at the highest profit to the company.

2. Map the value stream. This principle involves recording and analyzing the flow of
information or materials required to produce a specific product or service with the intent
of identifying waste and methods of improvement. The value stream encompasses the
product's entire lifecycle, from raw materials through to disposal.
Companies must examine each stage of the cycle for waste -- or muda in Japanese. Anything
that does not add value must be eliminated. Lean thinking recommends supply chain alignment
as part of this effort.
3. Create flow. Eliminate functional barriers and identify ways to improve lead time to
ensure the processes are smooth from the time an order is received through to delivery.
Flow is critical to the elimination of waste. Lean manufacturing relies on preventing
interruptions in the production process and enabling a harmonized and integrated set of
processes in which activities move in a constant stream.
 4. Establish a pull system. This means you only start new work when there is demand for
it. Lean manufacturing uses a pull system instead of a push system.

With a push system, used by manufacturing resource planning (MRP) systems, inventory needs
are determined in advance and the product is manufactured to meet that forecast. However,
forecasts are typically inaccurate, which can result in swings between too much inventory and
not enough, as well as subsequent disrupted schedules and poor customer service.

In contrast to MRP, lean manufacturing is based on a pull system in which nothing is bought or
made until there is demand. Pull relies on flexibility and communication.

5. Pursue perfection with continual process improvement, or kaizen. Lean

manufacturing rests on the concept of continually striving for perfection, which entails
targeting the root causes of quality issues and ferreting out and eliminating waste across
the value stream.

Seven wastes of lean manufacturing:

Here we are referring to any expenditure of resources that doesn’t add value for the customer. In
lean manufacturing there are generally considered to be seven types of waste.

1. Unnecessary transportation.
2. Excess stock of material and components.
3. Over-production against plan.
4. Waiting time of operators and machines.
5. Waste in the process itself.
6. Non value-adding motion.
7. Defects in quality.

Wastes in mass production of our product “foldable bicycle”:

1. Transportation:
Transport is the movement of materials from one location to another, this is a waste as it
adds zero value to the product.
 To manufacture our product lots of component were used. Inappropriate selection of
suppliers would result in huge amount of transportation cost to carry materials and
component in the production site. As we have manufactured both in ‘Kalshi’ and
‘Dholaikhal’, transportation cost goes high. We have to buy many cycles part from
‘Bongshal’. So, transportation cost remains high.
 Solution:

 Strategically appropriate selection of suppliers would decrease a lot of transportation cost.

For mass production it is mandatory to keep manufacturing place and material buying place or
supplier near each other.
 Improving factory layout through the use of value stream mapping and process mapping
can give huge savings in time and money, often with little cost involved relative to the
savings to be made.
2. Inventory:

Inventory is the raw materials, work in progress (WIP) and finished goods stock that is held,
we often hold far more than is required to produce goods and services when the customer wants
them using Just in Time (JIT) principles.

 As we have to travel 3 different places, we need some place in all the 3-working place for
inventory.
 When buying the different parts of cycle, some part we
have purchased early (such as handle). So those parts need some place to keep which
induced inventory cost.
 Employs JIT (Just in Time) inventory management system by selecting appropriate
supplier will ensure enough materials to keep processes going, and just enough finished
products to satisfy market demand.
 What we have noticed in our prototype building (sequence), we have to purchase the
materials in that order in mass production.
 In mass production Kanban can be used to balance our processes and prevent the
buildup of inventory.
3. Unnecessary Movement:

Waste of motion is any motion of man or equipment that does not add value to the product or
service. This kind of waste includes movements of employees (or machinery) which are
complicated and unnecessary.

 Poor workstation layout results in excessive movement. Also poorly arranged

space, tools that are disorganized disrupts production flow.
 Searching for tools and equipment is another reason of unnecessary motion.
  Better facility layout for mass production of our product is the solution of this waste. To
arrange a process, we will consider whatever is necessary where workers need to do as little as
possible to finish their job.
 Applying 5S tool in our work cell will help to keep all the equipment and tools
organized and eliminate the waste of motion.
4. Waiting:

Waste of waiting is any idle time produced when two interdependent processes are not
completely synchronized.

 goods waiting to be delivered, equipment waiting to be fixed or a document waiting

for approval from executives can result in waste in our case.
 In ‘Kalshi’ welding mechanism was not up to the mark. So
we have to wait for better welding which we have done in another place. This includes
in our waste.
Solution:

 Balancing of our production processes using Takt time will help to ensure that the
processes are better matched with regards to cycle time.
5. Over processing:

Over processing means producing features that nobody is going to use.

 There is an under support in our cycle. Which gives more strength but it induces some
difficulty when folding. That occurs over processing.
 We have added an extra key joint in our fork. We want to
make the handle also be folded in the body part. But if it is made then there will
nothing to push for the cycle when carry.
Solution:

 Initial 5S implementation instigate the use of Standard Operating Procedures (SOP) to

provide written instructions for all employees. These SOPs will ensure the standardization of
methods across shifts and personnel, combined with on the job training they are an highly
effective way to improve the quality of our product as well as ensuring the reduction in
Over processing.
6. Defects:

The waste of defects is parts or services that do not meet specifications.

 Broken main body that need to be reworked or replacement results in loss of resources,
,materials and time. It could even lead to lost customers.
 Welded part finishing is not up to the mark.
 The backside supporting mechanism is not work smoothly.

Solution:
 Poka- yoke will help to detect if a product is defective or not. The goal is to prevent
mistakes automatically, without human inspection. We can use sensors to detect defect.
 More precise welding machine must be used in mass production.
 We can also implement standard operations procedures (SOP) and training to ensure
that the correct methods are undertaken and standards achieved.

The foundations of Lean Manufacturing provide a shared understanding for management &
employees of the philosophical basis that separates successful Lean Manufacturing
implementations from failures. If you do not understand the "know why" (philosophy), none of
the rest will make any sense. Practicing the philosophy of Lean manufacturing, developing tacit
learning, engaging all employees in Kaizen and understanding what is meant by improvement.
By supplying the customer with a product of higher value while using much less means to
get there, lean manufacturing truly is a bi-winning solution. Companies Profit is the selling
price less costs to produce it. But selling price is very much dictated by the market not by the
company itself. So charging too much is not a wise idea Therefore the only way we have to
improve our profits are to reduce our costs; this means removing all elements of waste from our
processes.