-
Correction:
Correcting or repairing a defect in materials or parts adds unnecessary
costs because of additional equipment and labor expenses. An example is
the labor cost of scheduling employees to work overtime to rework
defects.
-
Overproduction: Producing more parts than necessary. Producing parts at
a rate faster than required. Doing this requires more raw product
inventory than necessary, over uses machines and people and requires
more storage area.
-
Processing: Processing work that has no connection to advancing the
line or improving the quality of the product. Examples include typing
memos that could be hand written or painting components or fixtures
internal to the equipment.
-
Transportation: Transportation is incidental, required action that does
not directly contribute value to the product. It’s vital to avoid
transportation unless it is supplying items when and where they are
needed (i.e. just-in-time delivery).
-
Inventory: Inventory is a drain on an organization’s use of capital.
The greater the inventory, the higher the carrying costs. If quality
issues arise and inventory perishes, defective material may be hidden
in finished goods. To remain flexible to customer requirements and to
control product variation, we must minimize inventory.
-
Motion: Any movement of people or machinery that does not contribute
added value to the product; i.e., programming delay times and excessive
walking distance between operations.
-
Waiting: Idle time between operations or events, i.e. an employee
waiting for machine cycle to finish or a machine waiting for the
operator to load new parts.
