•1.) Overproduction: producing more than the demand of customers,
resulting in unnecessary inventory, handling, paperwork, or
warehouse space
•2.) Waiting Time: operators and machines waiting for parts or work
to arrive from suppliers or other operations; customers waiting in
line
•3.) Unnecessary Transportation: double or triple movement of
materials due to poor layouts, lack of coordination, and poor
workplace organization
•4.) Excess Processing: poor design or inadequate maintenance of
processes, requiring additional labor or machine time
•5.) Too Much Inventory: excess inventory due to large lot sizes,
obsolete items, poor forecasts, or improper production planning
•6.) Unnecessary Motion: wasted movements of people, or extra
walking to get materials
•7.) Defects: Use of material, labor, and capacity for production of
defects, sorting out bad parts, or warranty costs with owners
•Additionally – 8.) Underutilization of Workers: stems from not
recognizing, developing, and utilizing mental, creative, and physical
abilities of employees
2.) Identify, study, and improve the value stream of the process for each product or service
•Value Stream: identifies all the processing steps and tasks undertaken to complete
a product or deliver a service from beginning to end
•a typical value stream can include both value-added and non-value-added
processing steps and tasks
•the goal of value stream is to eliminate the non-value-adding processing
steps and tasks
•Value Stream Mapping: creates a visual representation of the value stream
of a process, much like process flowcharting