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1. Rapid Site Assessment 8 Wastes Transportation Inventory Motion Waiting Over processing Over production Defects Unused Human Potential

2. Transportation Definition: Any movement of product that does not add value Example: Moving parts in and out of storage, movement of parts between processes Indicator: Batch Production, push production, large storage areas, functional layout Action to take: One Piece Flow, VSM, Point of use storage 2 2

3. Inventory Definition: Any material or product that is not needed to satisfy the current customer demand Example: Excess raw materials, work in process, finished goods, Indicator: Long supplier lead times, lack of visible flow, long setups, no ordering process on shop floor Action to take: Pull Systems, One Piece Flow, VSM, SMED 3 3

4. Motion Definition: Any movement of people that does not add value Example: Searching for parts/tools/prints, sorting materials, reaching for tools, lifting parts/boxes Indicator: Workplace disorganization, poor workstation design, unsafe workspaces, missing items Action to take: 5S, Hoshin, VSM, Point of Use Storage, Water-Spider 4 4

5. Waiting Definition: Idle time created when material, information, people or equipment are not ready Example: Waiting for parts, prints, inspection, machines, repairs, information Indicator: Push production, work imbalance, centralized inspection, high downtime, no visible production plan Action to take: Work Balancing, SMED, TPM, In process Inspection 5 5

6. Over processing Definition: Any effort that adds no value from the customers viewpoint Example: Multiple cleaning of parts, over-tight tolerances, paperwork Indicator: Delays between processes, No DFM process involving employees, No standardized work Action to take: VSM, One Piece Flow, Standardized Work 6 6

7. Overproduction Definition: Producing more that the customer needs right now Example: Producing to forecast, producing to avoid setups, batch production Indicator: Forecast on shop floor, long setups, inventory to cover breakdowns Action to take: Pull Systems, Work Balancing, Hourly Takt Targets, SMED 7 7

8. Defects Definition: Any effort to contain, rework or disposition mistakes or errors Example: Scrap, rework, customer returns, supplier rejects Indicator: Processes not defined and stable, Poor handling and tracking of rejects/rework, Internal and external defect rates not visible Action to take: Standardized Work, DM Process, Customer Focus Area, Shop Floor Problem Solving Upper longeron location in F-15 forward fuselage 8 8

9. Unused Human Potential Definition: Any Losses due to lack of utilization of the entire team in continuous improvement Example: No cross-functional teams, top-down management, no suggestion programs Indicator: No Team communication areas, poor understanding of priorities, employee resistance to new ideas Action to take: 5S, Daily Team Meeting, Suggestion System, QRQC 9 9

10. 10 Example - Scorecard

11. 11 Example - Scorecard