Seven types of waste: How to optimize resource consumption

In business administration, waste is defined as the non-economic or improper use of resources such as working time, training or money. In the lean management approach, this has been analyzed and systematized.

Waste can have serious consequences, if it is not addressed and eliminated. For example, it can demotivate employees and significantly affect the success of the company. In the lean production approach of Taiichi Ohno, the inventor of the Toyota production system, the types of waste are examined. They are classified and systematized. The generic term for the seven types of waste is the Japanese term muda, which stands for pointless activities. The acronym TIMWOOD can be formed from the first letters of the seven types of waste in English. These are the seven types of waste:

Transport

Transporting materials generates costs, e.g. for personnel or energy. In addition, every transport involves the risk of damage to the goods being moved. An analysis of the work routes can help here. Can routes be avoided or shortened - by a different arrangement of the workstations or by a new timing and synchronization of the individual work steps? It is not uncommon for transport to be the cause of delays in the company's operations.

→ Avoid unnecessary material movements!

Stocks (English: Inventory)

Inventories are essential throughout a company's value chain. First, the company needs stocks of raw materials, then of semi-finished items and finally a stock of finished products. However, only to the extent required for the company's operations. On the other hand, inventories that exceed this necessary minimum quantity are classified as waste. This is because these excess stocks tie up capital. In this case, it is advisable to review the company's processes. Stabilizing and standardizing processes is usually an effective way to reduce high inventories.

→ Reduce your stocks!

Movement (Motion)

Unnecessary movements of employees should also be avoided in order to achieve efficient company operations. Unnecessary movements such as walking to the material output or reaching for distant components reduce the employee's productivity. In addition, such movements can cause poor posture, putting strain on the body. The remedy for the company is to consider ergonomic principles when setting up the workstation. This increases the effectiveness of the employees, prevents health impairments and occupational accidents. In addition, an ergonomically designed workplace helps to maintain the quality of production at a consistently high level.

→ Avoid non-ergonomic movements!

Waiting

It is a waste of resources when an employee waits in the company process. During this time he or she is unproductive and no value is created. It is irrelevant whether the waiting is scheduled or unscheduled. Reasons for waiting can be, for example, insufficient synchronization of work steps, it can result from a disruption such as an interruption in material replenishment. Or an employee waits as scheduled for a machine to complete its work cycle. Waiting periods increase the lead time for manufacturing the company's products. This is the most serious effect of waiting periods. In addition, waiting periods can affect the motivation of employees who are under-worked. What can remedy this situation? Optimized process planning in particular may help to eliminate this grievance. Job Enlargement of employees can also help with this problem. Likewise, the operation of several stations is a possible solution.

→ Reduce avoidable waiting times!

Overproduction

Overproduction indicates a situation in which more items are produced than are purchased. This results in inventories. This results in higher costs. Expenses are generated for the maintenance and management of the warehouse. Capital is tied up by the stock, liquidity is no longer available. It remains uncertain whether the produced articles can be sold at all. The reason for this situation is often the concept of "optimal lot size". Here, the relationship between inventory costs and setup costs for production projects is optimized. This also takes place when there is no concrete sales opportunity for the number of units calculated as a result. The so-called pull principle can provide a remedy here. With this philosophy, production is only carried out on demand. In this way, the customer's requirements are coordinated with the production process chain.

→ Avoid overproduction!

Incorrect processes/technology (overengineering)

Waste occurs not only in inefficient processes, but also in overengineering. This term refers to the case where processes are designed to be unnecessarily complex for the end product. In this case, the processes in the company should be reviewed. In this case, it is advisable to modernize and review the processes. A viable way to do this is through modularly designed production facilities. Production facilities designed in this way help to minimize waiting times, goods movements and inventories.

→ Simplify the processing!

Rejects/rework (defects)

Rejects or rework are waste, by definition . In this case, value has already been added, but there are errors. Reasons for this can be errors of the employees or the machines; it is also conceivable that components were delivered with flaws. The goal of improvement must be to deliver the desired quality and reduce the error rate.

→ Improve continuously!