Introduction to Lean and Waste
Lean is a management philosophy that aims to minimise waste and maximise value for customers. What is waste? Waste is any unwanted or unusable material that is discarded after its primary use. Waste, in the context of lean, refers to any activity or process that does not add value to the customer. The concept at the core of Lean methodology is to minimise inefficiencies such as waste, unevenness, and overburden, which drives continuous improvement and process optimisation. By identifying and eliminating waste, organisations can streamline their operations, reduce costs, and enhance customer satisfaction. Waste is not just about physical materials; it encompasses time, effort, and resources that do not contribute to the final product or service.
Types of Waste in Lean
There are three main types of waste in lean: Muda, Muri, and Mura. These are the forms of waste that organisations need to identify and eliminate to improve efficiency. Muda means waste or wastefulness in Japanese, referring to activities that do not add value. Each type of waste represents a different aspect of inefficiency that can hinder an organisation’s performance. By addressing these forms of waste—Muda, Muri, and Mura—businesses can create more efficient processes and deliver greater value to their customers.
Muda (Non-Value-Added Activities)
Muda refers to non-value-added activities that do not contribute to the creation of value for the customer. Solid waste, such as discarded materials from households, factories, or hospitals, is an example of such non-value-added activities. These activities can be eliminated or minimised to improve efficiency. Muda reduction focuses on identifying and minimising non-value-adding processing steps within business operations. Examples of Muda include:
- Overproduction: producing more than what is needed
- Waiting: waiting for materials, equipment, or information
- Transportation: moving materials or products unnecessarily
- Inventory: storing excess materials or products
- Motion: unnecessary movement of people or equipment
- Defects: producing defective products
- Overprocessing: using more resources than necessary to complete a task
The seven wastes framework is commonly used to categorise different types of Muda in Lean manufacturing and business process improvement.
By identifying and eliminating Muda, organisations can streamline their processes and focus on activities that add real value to the customer. Efforts to eliminate muda are central to Lean systems, as they help improve quality, safety, and efficiency while reducing costs.
Muri (Overburden)
Muri refers to overburden or overloading of equipment, people, or processes, with various sources of overburden including industrial, commercial, domestic, and agricultural sectors. This can lead to inefficiencies, errors, and waste. Exceeding the capacity of an operation or resource often results in Muri, making it crucial to balance workload and production flow. Examples of Muri include:
- Overloading equipment or machinery
- Assigning too many tasks to an individual or team
- Insufficient training or resources
- Unrealistic expectations or deadlines
Overburdening can cause stress, burnout, and an increased likelihood of mistakes, which ultimately results in waste. By managing workloads and ensuring adequate resources and training, organizations can prevent Muri and maintain a more efficient and productive environment. Muri and Muda (muri muda) are interconnected—overburden in operations can directly lead to increased waste, highlighting the importance of optimising capacity and process flow.
Mura (Inconsistency)
Mura means unevenness or irregularity in processes or workflows. This unevenness can occur in various areas, such as the production line or assembly process, and is a root cause of waste (muda) in Lean systems. Different sources of waste, such as industrial, commercial, domestic, and agricultural, contribute to this inconsistency and impact overall efficiency. Mura can lead to inefficiencies, errors, and waste. Examples of Mura include:
- Inconsistent quality of materials or products
- Variability in production schedules or workflows
- Lack of standardisation in processes or procedures
- Inadequate communication or coordination between teams or departments
Maintaining a steady pace and aligning production with takt time helps reduce Mura by ensuring that workflow and capacity are balanced. For example, using a just-in-time system in a production line or assembly process delivers materials and produces items only as needed, minimising unevenness and preventing overproduction.
Inconsistencies can disrupt the flow of work and create bottlenecks, leading to delays and increased costs. By standardising processes and improving communication, organisations can reduce Mura and create a more predictable and efficient workflow.
By understanding and addressing these types of waste, organisations can improve efficiency, reduce costs, and increase customer satisfaction.
Muri – Types of Waste Overburden
Overburden can be caused by processes having uneven demand (Mura) or potentially by reducing wastes within processes. Whatever the reason, overburden occurs when we place too much burden on a part of the process. These are the wastes of overburdening machines – asking them to work faster than they are capable and perhaps not giving enough time for day to day maintenance. This can lead to inefficiencies, errors, and waste. Overburdening increases the risk of mistakes and accidents, which can compromise workplace safety and process stability.
But more often than not fail to identify when we overburden our people. Overburdening people is one of the most damaging things that can happen within organisations. This can be the result of aggressive cutting, restructures or even the result of poorly planned transformation activities that are meant to drive improvements in the business. Additionally, pressure to meet targets can result in overburden, as employees may be pushed to work beyond their capacity, leading to further risk of errors and burnout.
In January 2017, Future workforce and Kronos identified that burnout is responsible for over 50% of their annual turnover. And 30% of these employees blamed the overburden on poor management.
Therefore, getting the balance right is critical. And lets be honest – its often the best employees that get overburdened. Its not the average or poor performers that get pulled into various projects. It’s our best people – the ones we can count on to make a difference. Analysing and standardising work processes is essential to prevent overburden and ensure workloads are distributed efficiently.
The manager’s role
The focus as a manager must first and foremost be on getting the front line team to understand “Muda” and how to remove waste from every process to drive efficiencies and great value.
However, as managers, we must take a high-level view of the end to end process and by removing silo’s, functions and departments from our thinking we must find ways to ensure a consistent flow of work across all sections to support our teams.
Do you have the right people in the right places?
Do you have uneven demand within the value stream and what actions can be taken to even it out?
Are there certain individuals or sections which are doing the lion’s share and are potentially overburdened? If so, how can the responsibility or workload be shared? Is the team structure or organisational structure fit for purpose?
Check out this article from Harvard Business Review where Excessive Collaboration is discussed.
https://hbr.org/2017/04/employee-burnout-is-a-problem-with-the-company-not-the-person
Understanding Waste in Lean
Lean is a management philosophy that aims to minimise waste and maximise value for customers. In the context of waste management, lean principles can be applied to reduce waste generation, improve waste collection and disposal processes, and promote sustainable practices. Analysing entire business processes is essential to identify inefficiencies and areas where waste can be eliminated. There are several types of waste that can be identified in lean, including:
- Transportation Waste: This refers to the unnecessary movement of waste from one place to another. Reducing transportation waste can lead to more efficient waste management and lower transportation costs.
- Inventory Waste: This involves the storage of waste that is not being used or processed. By minimising inventory waste, organisations can free up valuable space and resources.
- Motion Waste: This is the unnecessary movement of people or equipment to manage waste. Streamlining processes to reduce motion waste can enhance productivity and reduce physical strain on employees.
- Waiting Waste: This refers to the time spent waiting for waste to be collected or processed. Reducing waiting waste can lead to faster and more efficient waste management operations.
- Overproduction Waste: This occurs when more waste is generated than necessary. By aligning production with actual demand, organisations can minimise overproduction waste.
- Overprocessing Waste: This involves using more resources than necessary to manage waste. Simplifying processes can help reduce overprocessing waste and conserve resources.
- Defect Waste: This is the generation of waste that is defective or of poor quality. By improving quality control, organisations can reduce defect waste and enhance overall efficiency.
In lean production systems, various lean tools such as 5S, Just-In-Time, and Kanban are used to eliminate waste and improve process efficiency. For example, a distribution centre can implement lean tools to optimise workflow, reduce unnecessary motion, and eliminate waste, resulting in improved efficiency, reduced overload, and enhanced safety for employees.
By identifying and addressing these types of waste, organisations can improve their waste management processes, eliminate waste, and reduce their environmental impact.
Impact of Waste on Lean Processes
The impact of waste on lean processes can be profound, affecting various aspects of an organisation’s operations. Waste can be a significant barrier to achieving lean efficiency and operational excellence. Here are some key ways in which waste can impact lean processes:
- Reduced Productivity: Waste can lead to reduced productivity by causing delays and interruptions in the workflow. For instance, waiting for materials or equipment, dealing with defects, or managing excess inventory can slow down production and reduce overall efficiency. This not only hampers the speed of operations but also increases labour costs as more time is spent on non-value-adding activities.
- Increased Costs: Waste can lead to increased costs in several ways. Storage costs can rise due to excess inventory, rework costs can escalate when defects are produced, and scrap costs can accumulate from discarded materials. These additional expenses can strain an organisation’s budget and reduce profitability. By identifying and eliminating waste, businesses can significantly cut down on these unnecessary costs.
- Overproduction Waste: Overproduction occurs when more products are made than are needed, often because production is not aligned with actual customer demand. This leads to unnecessary inventory, increased storage costs, and wasted resources. Aligning production levels closely with real customer demand is essential to minimise overproduction and eliminate waste.
- Reduced Quality: Waste can lead to reduced quality in products and services. Defects, errors, and variability in processes can result in poor-quality outputs that fail to meet customer expectations. This not only affects the reputation of the organization but also leads to additional costs associated with rework and returns. Ensuring high-quality standards by minimising waste is crucial for maintaining customer trust and satisfaction.
- Decreased Customer Satisfaction: Waste can lead to decreased customer satisfaction in various ways. Delayed deliveries, poor-quality products, and inadequate service are common outcomes of inefficient processes plagued by waste. Customers expect timely and high-quality products and services, and any deviation from these expectations can result in dissatisfaction and loss of business. By streamlining processes and eliminating waste, organisations can enhance customer satisfaction and loyalty.
Understanding the impact of waste on lean processes is essential for organisations aiming to improve efficiency, reduce costs, and deliver greater value to their customers. By addressing the different types of waste, businesses can create more streamlined and effective operations, ultimately leading to better performance and customer satisfaction.
Conclusion
Waste is a complex issue that affects the environment, human health, and the economy. Understanding the different types of waste, their sources, and their impacts is crucial for developing effective waste management strategies. By applying lean principles to waste management, organisations can reduce waste generation, improve waste collection and disposal processes, and promote sustainable practices. Ultimately, reducing waste and promoting sustainability is essential for protecting the environment and ensuring a healthy and prosperous future for all.
