1. Simple Lean Value
and Waste Training
By: Romains Bos

2. • Introduction – Value and Waste
• Defining Value and Waste
• Understanding and Eliminating Waste
• Value and Waste
• Types of Waste
• Examples of Waste
• Office Examples of Waste
• Benefits of Lean
• Remembering the Seven Wastes
• Foundations of Project Success
Agenda

3. Value and Waste
Introduction

4. Defining Value and Waste
Value Added Activity
• Done right the first time
• Any activity that changes the form, fit,
function or finish of a product / transaction
• Something customers are willing to pay for
• Addresses specific need(s) at a specific
time
and or a specific price
Non-Value Added Activity
• Not done right the first time
• Takes time / resources / space but does
not add value
• Customer is not willing to pay for
• All other actions and unwanted features
are by definition — WASTE
Typical process is 2-5% value-added activities… 95-98% waste!

5. Types of
Waste
Unnecessary Waste - adds no value and can be
eliminated immediately. "That's embarrassing.
Let's stop doing that."
Necessary Waste - adds no value, but is
required for the way things are currently done.
(e.g. Verification, approvals)

6. Observe that two things are ALWAYS happening. . .
Things that should be done
Things that should not be done WASTE
WORK
Time
After
Before
Value Added Work
After
Before
Non Value Added Work
Time
“It”…Either Adds Value or Does Not
Understanding and Eliminating
Waste

7. Value and Waste
Value
Unnecessary
waste
Necessary
waste
Rework
Missing
information
Lack of / Poor
communication
Information
that does not
(from the
viewpoint of
the customer)
add value to a
good or service
Reviewing the business
rules
Quality checks
Building the metrics
Resources consumed by
inefficient or non-essential
activities
Designing the organizational tools
Transforming the information
Assembling the part
Creating the drawing

8. Examples of Waste
Waiting
Excess Inventory
Transportation
Over Production
Excess Motion
Over Processing
Defects
IT examples
• Performance and Availability
Issues
• Poor technical designs
• Unused HW, SW and / or licenses
• Multiple versions of the same
reports or objects
• Required fields not really needed
• Not enough Poka-yoke
• Buggy code
• Too many screens
• Manually moving data from one
system to another
• Poor integration design
• Utilizing non-standard integration
tools
• Over-solutioning (unused
features)
• Duplicate functionality
• Table scans of complete
databases
• More than one screen / system
for the same transaction
• Input fields not organized
• Credit application awaiting
approval
• Invoices waiting to be paid
• Missed customer due dates
• Data entry errors
• Duplicate entries
• Shipping hard copies that
requiring signatures
• Running a credit check for
every customer inquiry
• Looking / Searching for data
and info
• Printing material for personal
use
Transaction examples Product examples
• Expensive machine running at
30% capacity
• Material between operations and
process steps
• Buffer & safety stock inventory
• Poor quality or fit of materials
• Handwork…polishing, deburring
• Conveyance of any materials
and tooling
• Conveyance systems
• Sub-assemblies and components
between feeder and main line
• Operators bending, twisting,
turning and reaching
• Machines “cutting air”
• Robotic motion getting home

9. Office Examples of Waste
Defects
• Data entry errors
• Other order entry or invoice errors
• Any error that gets passed downstream - only to
be returned for correction or clarification
• Changes (Not requested by the customer)
• Design flaws
• Employee turnover
• Absenteeism

10. Office Examples of Waste - Cont’d
Over Production
• Printing paperwork (That might change) before it
is needed
• Processing an order (That might change) before it
is needed
• Any processing that is done on a routine schedule
- regardless of current demand

11. Office Examples of Waste - Cont’d
Excess Inventory
• Purchasing or making things before they are
needed (Think office supplies, literature...)
• Things waiting in an (Electronic or physical) In Box
• Unread email
• Any form of batch processing (e.g. Transactions,
reports...)

12. Office Examples of Waste - Cont’d
Over Processing
• Relying on inspections / auditors or quality
checks, rather than designing the process to
eliminate errors
• Re-entering data into multiple information systems
• Making extra copies
• Generating unused reports
• Expediting
• Unnecessarily cumbersome processes (Think
financial statement period end close, expense
reporting, the budget process...)

13. Office Examples of Waste - Cont’d
Excess Motion
• Walking to copier, printer, fax...
• Walking between offices
• Central filing
• Going on a "safari" to find missing information
• Backtracking back and forth between computer
screens

14. Office Examples of Waste - Cont’d
Transportation
• Movement of paperwork
• Multiple hand-offs of electronic data
• Approvals
• Excessive email attachments
• Distributing unnecessary Cc copies to people who
don't really need to know

15. Office Examples of Waste - Cont’d
Waiting
• Slow computer speed
• Downtime (Computer, fax, phone...)
• Waiting for approvals
• Waiting for information from customer
• Waiting for clarification or correction of work
received from upstream process

16. Office Examples of Waste - Cont’d
Confusion
• Any missing or misinformation
• Any goals or metrics that cause uncertainty about
the right thing to do
Unsafe or Un-ergonomic
• Office work conditions that cause carpel tunnel,
eye fatigue, chronic back pain, or that
compromise the health and productivity of workers
in any way

17. Office Examples of Waste - Cont’d
Under Utilized Human Potential
(Performance / Talent)
• Restricting employee's authority and responsibility to make
routine decisions
• Having highly paid staff do routine tasks that don't require
their unique expertise
• Not providing the business tools needed to perform and
continuously improve each employee's assigned work
• Not trusting your people to stop production in order to stop
and fix a problem
• Not trusting people with a flat organization structure of
largely self-directed teams
• Not expecting (and measuring) every person to contribute to
continuous improvement

18. Excess Inventory Full inboxes, lengthy To-Do lists, long work queues
Defects
Memos / emails / documentation containing spelling and
grammar errors
Waiting Delaying a meeting until a coworker returns from vacation
Over Production Excessive e-mail Cc’ing
Over Processing Routing documents for approval
Excess Motion Walking to the copier, printer, and fax machine
Transportation Interoffice mail / information
Business Process Analogues

19. Benefits of Lean
• Reduced Cycles
• Better Delivery
• More Capacity
• Better Quality
• Productivity
Improved Customer
Satisfaction
. . . Any Process or Value Stream
After
Before
Wait / Waste . . .
Non Value Add Time
Wait / Waste . . .
Non Value Add Time
Lean Attacks Waste Here
Work . . .
Value Add Time
Work . . .
Value Add Time
Lead Time / Cycle Time

20. Remembering the Seven Wastes
An easy way to
remember the seven
wastes is TIMWOOD
• T: Transportation
• I: Inventory
• M: Motion
• W: Wait
• O: Over Processing
• O: Over Production
• D: Defect
Another easy way is
NOW TIME: It's now
time to eliminate Mudas
• N: Non Quality
• O: Over Production
• W: Wait
• T: Transportation
• I: Inventory
• M: Motion
• E: Excess
Processing
An even better way is
DOWNTIME which
includes the all important
8th waste of Non Utilized
Talent
• D = Defects
• O = Over Production
• W = Waiting
• N = Non Utilized
Talent
• T = Transportation
• I = Inventory
• M = Motion
• E = Excess
Processing

21. Foundations of Project Success
Scope and Requirements
Schedule
Project Success
Quality
Cost
Integrity and Safety

22. The
End
Questions
?
Comments
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