Lean Service Waste Identification

1. Lean Service Waste Identification 6/26/2007

2. Manufacturing Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Mat’ls Goods Conversion Equip. Services process Capital Feedback Control Feedback Feedback Design Kaizen

3. Manufacturing Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Mat’ls Goods Conversion Equip. Services process Capital Materials / Products Information Design Kaizen

4. Environment People Methods Lean Mfg Measurement Equipment Materials Design Kaizen

5. Lean ManufacturingTypes of Waste • Overproduction • Waiting • Transport • Extra Processing • Inventory • Motion • Defects Design Kaizen

6. Environment People Methods Lean Design Measurement Equipment Materials Design Kaizen

7. Service OperationsTypes of Waste Because there is a different focus in service ops in order to add value, the wastes come in different forms. Design Kaizen

8. Service Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Info Designs Conversion Knowledge Services process Time Information Information Design Kaizen

9. Value-Added The difference between the cost of inputs and the value or price of outputs Value added Inputs Outputs Transformation/ Info Design Conversion Knowledge Drawing process Time Feedback Control Feedback Feedback Design Kaizen

10. Environment People Methods Lean Design Measurement Resources Information Design Kaizen

11. Lean ServiceTypes of Waste • People • Processes • Information • Resources • Measurements • Environmental Design Kaizen

12. Lean ServicePeople Wastes • Goal Alignment • Assignment • Waiting • Motion • Processing Design Kaizen

13. Lean ServiceProcess Wastes • Control • Variation • Tampering • Strategic • Reliability • Standardization Design Kaizen

14. Lean ServiceProcess Wastes, continued • Suboptimization • Scheduling • Work-around • Uneven flow • Inspection • Errors Design Kaizen

15. Lean ServiceProcess Wastes – Causes of Errors • Lack of knowledge, skills, or ability. • Mental errors – slips and mistakes. • Sensory overload • Mechanical breakdown • Distractions • Loss of memory • Loss of emotional control After LEMJ, GOAL Design Kaizen

16. Lean ServiceInformation Wastes • Inaccurate Information • Hand-Off • Communication Process Breakdown • Translation • Missing Information • Irrelevancy Design Kaizen

17. Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen

18. Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen

19. Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen

20. Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen

21. Communication Process Breakdown Encode Decode Noise Feedback Design Kaizen

22. Lean ServiceResource Wastes • Inventory • Capital equipment • Movement Design Kaizen

23. Lean ServiceEnvironmental Wastes • Leadership • Physical • Emotional • Business Design Kaizen

24. Lean ServiceLeadership Wastes • Focus • Structure • Discipline • Commitment • People Development Design Kaizen

25. Characteristics of Good Measures • Personal Impact – The causes that affect the outputs are under the control of the people or team who are responsible. • Immediacy – There is little time between changes in the inputs and changes in measured performance. Design Kaizen

26. Characteristics of Good Measures • Proximity – The measure is closer to the performance of the process. • Causality – Measure assesses a cause rather than an effect. • Proportionality – Changes in the measure are proportional to changes in performance. Design Kaizen

27. Characteristics of Good Measures • Customer Focus – Measure reflects performance relative to customer requirements. Design Kaizen

28. References • Office Kaizen by William Lareau • The Lean Enterprise Memory Jogger, GOAL QPC. Design Kaizen