Lean methodology and principles refer to practices and methods that minimize waste and maximize value in the business or organization for the customers. In lean, waste can be classified into 8 types commonly referred to as “TIMWOODS” for easy remembering. Each letter represents a type of waste that the business can identify within its process and strive to eliminate to improve process effectiveness and productivity.
The following are details on each of these wastes:
(T)Transportation Waste: The unnecessary movement of materials, documents, equipment or things between workstations, facilities, locations or within a location. This waste can be caused due to poor facility layout, lack of standardization, inefficient processes and/or poor communication.
(I)Inventory Waste: Any raw materials, work-in-progress, or finished goods stored or produced that are not needed for immediate use or delivery to customers can be classified as inventory waste. For example, excess inventory can result in increased storage costs, handling and transportation costs, and can lead to aged products and materials and waste.
(M)Motion Waste: The unnecessary movements made by humans that add no value to the customer is classified as a waste of motion. For example, a customer visits a supermarket to buy groceries and the products are not categorized in proper sections; sections are without proper signages and/or, to make matters worse, the supermarket management frequently changes the supermarket’s layout. This will lead the customer to move more than desired and lead to fatigue, reduce value and contribute to wasted time.
(W)Waiting Waste: Any time a person, equipment or material is waiting for the next step in the process is contributed towards a waste. The wasted time due to waiting can result from inefficient processes, lack of coordination, and poor scheduling. Waiting can lead to a loss of production time, missed deadlines, and increased lead times.
(O)Overproduction Waste: Producing more than is needed or producing too early is classified as waste due to overproduction. Overproduction can result in excess inventory, increased storage costs, increased cost of the process and increased handling and transportation costs. For example: printing marketing materials and brochures more than the desired requirement.
(O)Overprocessing Waste: Performing more work than necessary or using more expensive equipment, materials or tools. Overprocessing can result from over-engineering, lack of standardization, inefficient processes and/or unclear work instructions. For example, the organization takes four levels of approvals to pass one Purchase Order of smaller value. This can be avoided if the organization can define an approval matrix wherein one or two people can approve small orders to speed up the process and avoid risks.
(D)Defects Waste: Any product or service that does not meet customer requirements or expectations, resulting in rework or scrap, is classified as a defect. Defects can result from poor quality control, lack of training, and/or unclear work instructions.
(S)Skills Waste: Any unused talents, skills or knowledge of workers, resulting in underutilization of human resources. Skills waste, also known as the waste of intellect, can result from a lack of employee engagement, poor communication, and a lack of training or cross-training opportunities. For example, assigning an experienced and qualified accountant to work in the Human Resources department and recruit people.
Eliminating these types of waste can increase efficiency and improve business effectiveness, productivity, and profitability. By continuously improving processes and reducing waste, organizations can create more value for their customers and remain competitive in today’s market.
