Hey everyone, welcome to this lecture, what are eight wastes part one. In this lecture we will discuss the first four wastes in detail. Let's begin with number one defects. defects are rejects that require additional time, resources and money to fix defects are also called rework as they lead to more work. Lean thinking demands a vigorous look at these and other causes in order to continuously reduce defect levels. Typical causes of defects in the manufacturing world are poor equipment maintenance, poor quality system, poor training or work instructions and poor product design.
Causes of defects in the service industry our employees not calibrated poor training or work instructions or poor code Quality Management. Waste number two, overproduction. overproduction is defined as making more than is needed, or making it earlier or faster than is needed by the next process. The principle indication of overproduction is excess work in progress or Wi Fi. Companies adopt over production for various reasons, including long setup times, unbalanced workload. And just in time philosophy.
One company maintained a six month supply of a particularly small part because the machine that produced it was unreliable. In some cases, accounting methods have dictated that machines over produced to a monetize their capital costs. All work in progress should be continuously scrutinized for a possible reduction or elimination examples of openness Include when you observe that more information is being requested than required when the efforts are not aligned with risk, complexity or customer needs, and when the automation is poorly applied in your business. Waste number three, waiting. If you are making a phone call to your bank to check a few details of your bank account, and they have put you on hold for a long time. This long whole time is considered as waste.
It is waste of waiting, waiting results in waste of customers time waste of resources and also potentially leads to demoralization of personnel. Reducing the setup time and maintaining the production plans are partial answers to this problem. cross training of personnel so that they can be effectively moved to other positions is also helpful in some cases. Most important of course is carefully planned and executed scheduling. Waste number four non utilized skills, non utilized skills or waste of intellect is also called as lost creativity. This is perhaps the most unfortunate waste.
Most employees have ideas that would work to improve processes if those ideas are implemented. Standard organization structures sometimes seem designed to not promote such ideas. Union and management divide seem almost impossible to bridge. Lean thinking recognizes the need to involve employees in teams that welcome and reward their input. These teams must be empowered to make changes in an atmosphere that accepts mistakes as learning experiences. The resulting improved morale and reduce Personnel turnover impact the bottom line in ways that no accounting has yet calculated.
These are intangible benefits of lean thinking. Some additional examples of non utilized skills are a significant portion of expert time wasted on low value activities, lack of teamwork, lack of training, and narrowly defined jobs and expectations. That brings us to the end of this lecture. In the next lecture, you will continue to learn the remaining four types of waste. See you there