1.-Lean Wastes

Zulfa Management Consulting
www.zulfadev.com
+966 59 084 2622 [email protected]
To get closer … @zulfateam @zulfateam
[email protected]
Hussain Yasin Al-Ahmed
@hyahmed
Management Consultant
@hussain_alahmed
www.zulfadev.com
© 2015 Zulfa Managment Consulting. All Rights Reserved.
Lean is NOT ...Clearing confusions
It is not a magic wand or

It is not a diet program
silver bullet to fix everything
It is not rocket science. It is not a system to

It is simple reduce headcount
It is not only for factories. It is not a solution to

It works everywhere personnel or performance
issues
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2
What is Lean? Basic definitions
Lean is simply is:
“ A systematic approach to continuously eliminate waste within a process ”
It may be referred to as:

• Continuous Improvement
• Kaizen
• Operational Excellence
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3
What is Lean The Five Principles
Identify Map the Create Flow By Esatblish Seek

Value as Value Eleminating Customer Perfection
Percieved Stream Waste Pull Through
by System Kaizen
Cusotmers
Produce - only what the customer wants,

- only in the quantities they want,
- only when they want it,
- only by doing the tasks that add value.
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History of Lean
Over 60 Years of Continuous Improvement
1903 1908 1911

1913
Model T
Ford built the first

moving assembly line
Henry Ford Frederick Taylor

Model A Ford established its
manufactured the first developed scientific
first assembly line
commercial fuel engine car management principles
1970 1950 1933

1946 1939 to 1945
Toyota suffered from World War II

post war depression
Taiichi Ohno Edward Deming and the great strike Toyota was founded
finished buidling the made the PDCA by Kiichiro Toyoda
Toyota Production improvement cycle and his son
System (TPS) after popular
WWII
1990
1980 1984 2000
Continouos Improvement, LSS and

The rise of
Operational Excellence Strategies are
Motorola initiated Six Total Quality Management Jack Welch adopted by many organizations in
Sigma Quality (TQM) Theroy created Six Sigma and the different fields
Center of Exellence at GE
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5
Movie Time
Formula 1 Pit-Stop Evolution

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7
Why Focus on Process?
Why not something else?
80%
Inputs Outputs
• Products
• Material
• Services
• Information
• Customers
• Material
• Information
• Customers
Process
• Resources (people, facilities, equipment)
• Steps and decisions
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8
Process Waste Is the step value added?
Value-Added (VA) Step

Lead time = 7 Hours
Before
Non-Value Added
(NVA) Step
After
(Waste)
Lead Time = 3 Hours
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9
Value Added vs Waste Waste is Everywhere
Ask these 3 questions to know if the step is value added: Non-Value Added
but Necessary
Is the customer willing to pay for this specific step?

1 30%
2 Does the step transform the product or service?

10%
60% Value
3 Was the step done first time correctly? Added
Non-Value Added
If one if the answers is NO, then the step is waste.
(Waste)
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10
Photo Credit Tim and Selena Middleton
The 8 Types of Waste

Muda (Surface wastes)
1
D Defects
2
O Over Production
3
W Waiting
4
N Non-Utilized Talent
5T Transportation
6I Inventory
7
M Motion
8E Extra Processing The first step is

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© 2015 Zulfa Managment Consulting. All Rights Reserved. 11
seeing the waste!
Photo Credit Hussain Al-Ahmed
Overproduction Doing more than required

Every years billions of
Producing more products or services than the
dollars are lost because of
customer needs or downstream process can
use right away.
excess medicines
Examples:
prescribed by doctors.
• Oversupply
• Wasted raw material
• Too many meetings
• Not required work
• A report that no one reads
• Sending unnecessary e-mails
Common Causes:
• Unclear customer demand
• Push production system
• The production line cannot be stopped
• Long and complicated changeovers
• Unbalanced work flow
• Poor worker distribution
• Batching
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© 2015 Zulfa Managment Consulting. All Rights Reserved. 12 12
Inventory Storage
Unnecessary storage of information and

material How much is needed?
• Physical Inventories
• Queues of customers
• Digital Information in database
Examples:
• Too much stock in the warehouse
• High backlog or WIP (Work In Process)
• Customers waiting to be served
• System transactions waiting for actions
• Unread and undeleted e-mails
• Old and outdated documents
• Duplicate files
Common Causes:
• Overproduction
• Batching
• Late inventory updates
• Material replenishment system problems
• Disconnected storage locations
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© 2015 Zulfa Managment Consulting. All Rights Reserved. 13 Photo Credit Wikipedia
Inventory
High
Inventory
Why is it a problem?
Cost • Phyical invnetory ties up working capital

• Time-Cost to the waiting customer
• Cost of system setup access, update and
miantenance
Space • Items requires storage space

• Customers require waiting area
• IT system requires memory, security and
special environment
Inventory hides problems
Quality • Physical items may deteroriate over time
or obselete
• Customers may get upset if they wait for
too long Reducing
• Data may get corroupted or lost
Inventor
• Physical inventories may hide problems y
Operations
• Waiting customers may put undue
pressure on the staff causing quality
issues
• Databse needs constant management,
acess control and maintenance
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© 2015 Zulfa Managment Consulting. All Rights Reserved. 14 Source: adapted (Slack etl, 2009)
Photo Credit Garry Knight
Transportation Moving things
Moving products, equipment, material,

information, or people from one place to
another.
Examples:
• Shipping products
• Mobilizing equipment and people
• Moving material in the shop
• Moving spare parts
• Forklifts and cranes
• Moving marketing material for tradeshows
Common Causes:
• Poor facility layout (distance and sequence)
• Poor planning and communication
• Not leveraging technology
• Overproduction and high inventory
• Improper storage solutions
Will he add value by
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moving the books?15
Motion Searching
Unnecessary movement of people or

machines that takes time and uses energy and
may create health and safety risks.
Examples:
• Searching for hand tools or material
• Going to the supervisor office
• Excessive reaching or bending
• Walking to find people or information
• Trips to copier machine or printer
• Extra computer clicks
• Looking for specific files in computer
• Searching in the web
Common Causes:
• Facility layout
• Shared hand tools
• Workstation design
• Poor workplace organization and housekeeping
• Manual processes and not leveraging technology
• Ineffective information sharing
Are they working?
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Defects
Rework / Correction/ Errors
The efforts involved inspecting for and fixing

errors, mistakes.
Examples:
• Failed outgoing equipment inspection
• Quality problems and failures
• Corrections and rework
• Scrap and junk
• Returned documents and invoices
• Rejected paperwork
• Incorrect approval chain
• Unsaved computer work
Common Causes
• Lack of standard work
• Training problems
• Unclear or complex process
• Voice of the customer is absent
• Missing or incomplete information
How much will it cost to
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fix this! 17
Waiting Delays
Idle time created when material, information,

people, or equipment is not ready
Examples:
• Operator waiting for machines to finish cycling
• Waiting for Forklift
• Products waiting for people
• People waiting for material
• People waiting for other people
• Waiting for information, decisions or approvals
• Waiting for customer specifications
• Waiting for supplier confirmation
• Slow or broken computers or internet
Common Causes
• Unbalanced work flow
• Lack of workers
• System down time
• Machine breakdowns Keep Calm and Just Wait!
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Extra Processing
Ready to cut the apple in
Overdoing it
Process steps that do not add value to the

product or service, including doing work half?
beyond a customer’s specification.
Examples:
• Complex checklists with unused fields
• Highly sophisticated machines for simple tasks
• Curing material longer than engineering
requirements
• Doing maintenance more often than necessary
• Approval queues
• Printing every e-mail
• Collecting unused data
Common Causes
• Not questioning the status quo
• Unclear customer requirements
• Lack of trust and control issues
• Poor communication
• Lack of effective and creative problem solving
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© 2015 Zulfa Managment Consulting. All Rights Reserved. 19 Photo Credit Hussain Al-Ahmed
Non-Utilized Talent
Not involving people
Not adequately leveraging peoples’ skills and

creativity
Examples:
• Technicians spending time doing paperwork
• Engineers not trusted
• Not involving people in improvements
• Not utilizing people’s indirect skills
Common Causes
• “The boss knows everything” thinking
• Misusing position power
• Narrowly defined jobs and expectations
• No effective suggestions and improvements
procedures
• Boundaries between different levels of the OFF
organizations
Switch off during work

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hours!
The 8 Types of Waste
Do you remember them?
Defects Transportation
Overproduction Inventory
Waiting Motion
Non-Utilized Talent
Extra Processing
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21
Our goal is to help you achieve yours.
We strongly believe in supporting local

communities and charities. We are committed to
providing help anyway we can.
Let us hear from you …
Zulfa Management Consulting
www.zulfadev.com
+966 59 084 2622 [email protected]
@zulfa.team @zulfateam

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Zulfa Management Consulting

+966 59 084 2622 [email protected]

To get closer … @zulfateam @zulfateam

It is not a magic wand or

It is not rocket science. It is not a system to

It is not only for factories. It is not a solution to

Lean is simply is:

“ A systematic approach to continuously eliminate waste within a process ”

It may be referred to as:

Identify Map the Create Flow By Esatblish Seek

Produce - only what the customer wants,

1903 1908 1911

Ford built the first

Henry Ford Frederick Taylor

1970 1950 1933

Toyota suffered from World War II

Continouos Improvement, LSS and

Formula 1 Pit-Stop Evolution

• Steps and decisions

Value-Added (VA) Step

Lead Time = 3 Hours

Is the customer willing to pay for this specific step?

2 Does the step transform the product or service?

The 8 Types of Waste

8E Extra Processing The first step is

Overproduction Doing more than required

Unnecessary storage of information and

Cost • Phyical invnetory ties up working capital

Space • Items requires storage space

Transportation Moving things

Moving products, equipment, material,

Unnecessary movement of people or

The efforts involved inspecting for and fixing

Idle time created when material, information,

Process steps that do not add value to the

Not adequately leveraging peoples’ skills and

Switch off during work

We strongly believe in supporting local

Let us hear from you …

Zulfa Management Consulting

+966 59 084 2622 [email protected]

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