What is Waste ?

In today’s world, waste is a big topic, whether it is in work place, community and house hold activities.

Let us understand first what is waste? Anything which is non value added is waste! Our focus should be more into how to minimise Non value added activities with value addition, then waste automatically will reduce.

Typical ratio of Non-value added and Value added activities are 95%: 5%. In any project, you will see 5% as value added and 95% non-value added activities. Most of the cases,  we only focus on reducing value added activities, and end up  gaining minimal and nothing , example if you reduce 50% of value added activities, your total cycle time would be 97.5% ( only 2.5% improvement), mean you improve only 2.5%. If you reduce 50% of non-value activities, you improved by straightway 47.5%. That shows your through put and cycle time improvement.

Do we know what the biggest Non-Value activities are? Anything for waiting is biggest Non-Value activities, the waiting led into more DOWNTIME…!

•      D efects - Scrap/Rework

•      O ver Production

•      W aiting

•      N on Utilized Human Resources

•      T ransportation (material handling)

•      I nventory (Excess: raw, WIP, finished)

•      M otion Excess

•      E xtra Processing

Remember our customer recognise value added activities as being important and ready to pay for it.