In today's highly competitive business environment, organizations constantly look for ways to optimize their systems. They look for effective supplier management services. One of the practical approaches is Lean Six Sigma—waste reduction and process improvement.
Before we dive into the concept of waste in Lean Six Sigma, let's first define what Lean Six Sigma is.
Lean Six Sigma is a data-driven methodology that aims to eliminate defects, reduce waste, and improve customer satisfaction. Lean Six Sigma is based on statistical analysis, process flow, and improvements. We offer quality inspection services in Mexico for better results.
This article will explore the eight types of waste in Lean Six Sigma and how they can be identified and eliminated to achieve operational excellence
The Eight Types of Waste in Lean Six Sigma - DOWNTIME
The foundation of Lean Six Sigma is supplier quality management and waste reduction. Waste is anything that does not add value to the product or service. In Lean Six Sigma, there are eight types of waste, commonly abbreviated as DOWNTIME:
Defects are errors or mistakes in the production process that must be reworked. It results in poor quality of products or services, eventually leading to customer dissatisfaction. This waste occurs when the process is not standardized, or the quality control measures are insufficient. Statistics show that almost 5 to 30% of gross sales are wasted to correct these defects.
Overproduction is producing more than what is needed. It may be due to earlier production leading to excess inventory and wasted resources. This waste occurs when there is a poor balance between demand and supply. It causes huge resource waste.
Waiting is the time required for the information or product to arrive. This step is the opposite of overproduction. It may be due to poor communication among the team, delayed setups, lack of control, lack of synchronization between processes, etc.
4. Non-utilized Talent
Managing your team is one of the trickiest tasks. Not utilizing the abilities of your employee or team member to the maximum is a potential cause of time and resource waste. Be vigilant and assign the task carefully to the employees while keeping their backgrounds, skills, and capabilities in mind. This will optimize your process in several different ways
Undoubtedly, a business requires the transportation of its goods or materials. Not planning an effective route and strategies will lead to increased costs and potential damage. This waste occurs when transportation is unnecessary, inefficient, or without planning.
Inventory is excess material or products that are not needed, leading to increased storage costs and potential obsolescence. This waste occurs due to insufficient demand synchronization or when the production process is not optimized. Effective planning, strategy, and timely use of products will boost your productivity
Motion is any unnecessary movement of people or equipment, leading to wasted time and energy. Design your workplace ergonomically designed, and planning all the processes, tools, and equipment will reduce excessive movement, resulting in resource safety.
8. Extra Processing
Extra Processing is any activity that does not add value to the product or service. It leads to wasted resources and time. It may occur due to human error, delayed approval from management, or any other minor reason.
Identifying and Eliminating Waste in Lean Six Sigma
The first step in waste elimination is identifying the waste. In Lean Six Sigma, this is done through Value Stream Mapping (VSM). This visual represents the entire process, from start to finish. VSM helps identify areas of waste and opportunities for improvement.
Once the waste is identified, the next step is to eliminate it. This is done through a variety of six sigma tools and techniques, including:
- Kaizen: Continuous improvement through small incremental changes
- 5S: A workplace organization method that stands for Sort, Set in order, Shine, Standardize, and Sustain
- Poka-Yoke: Mistake-proofing through the use of visual cues or sensors
- Kanban: A pull
Lean sigma wastes can destroy the project completely. Therefore, it is necessary to eliminate them timely with effective strategies. If you don’t feel confident using these tools and processes, consult experts at AmrepMexico. Get benefited from our services and enjoy the maximum growth