SM4.1 Eight Types of Waste

The well-known Toyota car company identified seven types of waste that had an impact on Productivity and Profit.  An eighth has been added more recently.  By gradually reducing these wastes, you can improve the Productivity and Profit of your business.  In Japanese, this is referred to as reducing “muda” (pronounced Moo-da).  This article discusses how these types of waste might show up in your business; and what to do about them.  Waste reduction is an ongoing and probably never ending process.  This article gives lots of examples of waste in each of the categories.   To be most effective, you should tackle the largest waste items first so as to make the largest gains first. Waste reduction is a team effort ideally as those on the front-line probably already know what is wasteful; they are just not empowered and trained to combat waste.

Read this if: you are working on making your business operate more efficiently

Relates to: 80/20 Rule for finding the biggest issues, Kaizen for incremental improvement, Constraints and bottlenecks.  Our Profit Acceleration optimization toolkits; Double Profit in 100 Days and Double Growth and Profit in 365 Days.

Audio/visual Materials: none

Degree of Difficulty: Yellow (entry level) .  Not hard to do but requires perseverance.  It is the first article in a series on managing waste to improve your profit

SM4.4 How to Reduce Waste in Offices and Service Industries

Most improvement is an incremental process. “Kaizen” is a Japanese word for incremental improvement. Most people think of the removal of waste occurring only on the factory floor.

Waste can also occur in Office Operations; administration, human resources, sales & marketing. Experts report that Office Operations waste is at a higher level than waste on the factory floor.

The principle reason: operations on the factory floor are very visible. People optimise things on the factory floor. As previously discussed, experts have categorised waste into 8 types. Yellow &  Blue Belt

SM4.2 Capturing Waste in the Wild

Once you get on the trail of waste out in the wilds of your production system (service, retail or manufacturing), you are going to find literally hundreds of examples of waste.  It’s too much to hold in your head so you need a simple way to find, measure it and record it for later prioritised removal.  This is a yellow belt approach to these tasks. It is the second article in this series on waste.

SM4.3 Prioritising Waste Removal

Any waste removal project will identify literally hundreds of instances of waste. There is a serious risk that such a vast quantity of information will overwhelm the business operator’s ability to manage it in the best interests of the business. We need to discuss ways to identify the most important wastes to remove first. 

This is a Yellow Belt article.

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