The 10th International Conference of the Slovenian Society for Non-Destructive Testing

»Application of Contemporary Non-Destructive Testing in Engineering«

September 1-3, 2009, Ljubljana, Slovenia, 187-196

ELIMINATING WASTE IN COMPANIES

T. Berlec* and M. Starbek*

*Faculty of Mechanical Engineering, Laboratory for Manufacturing Systems and Production

Process Planning, Ljubljana, Slovenia

ABSTRACT

The global economic recession has caused a reduced volume of orders, market saturation and low
price competition pressure, so it is the right time for reorganization and optimization of companies
and not for dismissal of employees.
By dismissing employees the company loses good staff, employees accustomed to the work in their
company, the moral of workers decreases and the reputation of the company diminishes.
For these reasons, the companies must exploit this global crisis and during this time, with fewer
orders, shift as much energy as possible to improve the organization of the company. This primarily
means evaluation of processes and problems that have occurred during production and could not be
removed before due to the lack of time, or employees were not able to remove them because they did
not have enough knowledge.
Recession is the time to fix enterprise's internal problems and eliminate waste. In most companies,
the share of activities that truly create new value is less than 10%. All other activities that do not
create value can be attributed to waste. Eliminating waste is the first step towards automation and
introduction of Kaizen system (continuous improvement).
The article will summarize the wastes as a stimulation and consideration for companies that want to
address and eliminate waste.

Key words: Waste, Continuous improvement, Lean manufacturing

1. Introduction

Currently, almost no production company (being under strong competition pressure) can be successful
without using the lean production methods. Lean production (or TPS system according to its author Taiichi
Ohno) is a base for a successful, competitive and modern material flow. Simple process flows with simply
recognizable and quick improvement goals lead to quick rise of economy.
Because of new possibilities available on the Internet, even smaller companies can now compete with their
products on the global market. Companies with a good starting position do not have any advantage on the
global market; companies that can response quickly to market demands and can optimize highly flexible
processes have gained advantage over them.

Lean production (i.e. TPS system) consists of several methods and procedures that allow for an effective and
modern material (or product) flow [1].
The most important methods and procedures that ensure lean production are:

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Discovery and elimination of waste: Ignoring any waste in the production process encourages negative
development. Only systematic discovery and elimination of waste in production processes improves
processes and ensures positive development.

$
$
€$

Fig. 1: Waste

5W method: When analyzing background of a problem, the question WHY is being asked FIVE times. Has
the problem arisen because of: machine, worker, material, measurement or method? 5W method very quickly
leads to discovery of the main reason and to a solution of the problem.

Fig. 2: 5W method

Poka Yoke method: error-preventing strategy. The basic idea of this method is to design a process in such a
way that it is impossible for errors to occur; and if they do occur, they are eliminated quickly. Error-
preventing devices in a process are designed in such a way that errors cannot be made. Devices can operate
by detection and by using audible or light warnings.

Fig. 3: Poka Yoke example

Andon: Andon is a semaphore above the production line. It shows the production process line status. Colors
of the semaphore lights are the same as traffic lights used on streets. If a worker detects a small anomaly on
the production process line, he lights the YELLOW LIGHT on the semaphore and thus asks for help. If the
worker detects a larger anomaly, he lights the RED LIGHT and thus stops the production process on this
particular line. GREEN LIGHT on the semaphore indicates that the production process on the line flows
normally, without difficulties. Andon allows the workers to assume responsibility for execution of production
processes of the line.

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 Andon

1 2 3 4 5 6

Indic ation

Irregularit y
Response

Fig. 4: Andon principle

Multi-machine manipulation: A worker does not operate only one machine – he operates several machines.
This is possible if machine cycles allow this. Waiting time losses are reduced or eliminated in multi-machine
manipulation.

Tranform

One worker in one machine

Two workers serving five machines

Fig. 5: An example of a transition from single-machine to multi-machine manipulation

Kaizen: This is a method of continuous improvement; in the beginning it was used for continuous
improvement of production processes. Today Kaizen is used for continuous improvement of any working
process.

* Start As
Re s ess/
a sse
ss
Plan & Des ign
Evaluate

Continouous
Improvement

nt e
Implem

Fig. 6: Continuous improvement

From protection of employees and protection of an individual to a reduction of the number of

employees: Company employees are a sort of a "family" so it is important to protect each individual against
the economy measures. By flexibilization of qualifications in a company it is possible to achieve universal
use of employees, establish prerequisites for teamwork, and achieve higher efficiency.

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 Effect/
flexibility Effect/
flexibility

Time
Time

"Universal" use of employees,

trust, reliability, between
individuals , as "family"
Individuals, not confidence,
dissatisfaction

Fig. 7: Satisfaction of individuals

Just in time: JIT means supply of material at the right time, of the right quality, in the right quantity and on
the right location. In this way the production flows are optimized holistically, it is not just their functions that
are optimized.

Production A ssem bl y F inal assemb ly

$
$
$

D elivery Person 1 Person 1 Person 1

Sal e C usto mer

Production
Balanced
Synchronized
Simplified
Without wastes
Streamlined

Fig. 8: JIT chain

Kanban: The term "Kanban" means a label or a card on a box; it is used as a means of control. There are
several types of Kanban cards: concept order, delivery, supply, signal, express and urgent Kanban card. The
concept of the Kanban system is shown in Figure 9.

Kanban

Delivery what is required

when necessary in the required quantity

Fig. 9: Kanban

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The principle of SUPERMARKET and SUPPLIER KANBAN: In supermarkets the processes are carried
out using the PULL principle: when the stock of a particular material has been used up to a certain limit, new
material is ordered at the supplier with the KANBAN SUPPLIER card.

A simple example of the

supermarket system is a vendor for
drink and food.

Fig. 10: An example of the supermarket system

Production Leveling (Hei-junka): Leveling of labor is carried out. The goal is to make a transition to a
production on the principle of a conveyor belt and thus avoid large waste. It is also possible to achieve
continuous material flow and therefore JIT-oriented processes by adding buffers.

Production
levelling

Tradicional Levelling

Fig. 11: Production-leveling philosophy

Toyota company developed a 6-step production-automation procedure (Figure 12).

Step 6: Full automation

Step 5: Formation of robotize lines »U« shapes

Is there a direct
path to full
automation ? Step 4: Half automation production line

Step 3: Basic processes automation

Step 2: The formation of simple production lines »U« shapes

Step 1: Eliminating waste

Current status

Fig. 12: Automation procedure steps [2]

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We can see that the first step of the production-automation procedure is ELIMINATION OF WASTE, so in
the follow-up we will deal with the problems of finding and eliminating production waste.

2. Waste in manufacturing

All activities in manufacturing processes that do not add any value to the products are waste. It is necessary
to find all sorts of waste in manufacturing processes and suggest the ways of their elimination. SEVEN
TYPES OF WASTE were found in Toyota [2]:

1. waste of OVERPRODUCTION
2. waste of WAITING
3. waste of TRANSPORT
4. waste of INAPPROPRIATE PROCESSING
5. waste of UNNECESSARY INVENTORY
6. waste of UNNECESSARY MOTION
7. waste of MANUFACTURING DEFECTS.

2.1. Waste of OVERPRODUCTION

Overproduction occurs if more products are manufactured than it was planned by the production plan, or if
products are manufactured faster that it was planned. Consequences are piles of too early deposited products
in intermediate warehouses.
In order to prevent that a worker on a machine in a production line would not be without work, he starts
processing the next operational order immediately after having finished the previous one. This new product
was planned to be manufactured later, so the worker creates overproduction, which requires intermediate
warehouses.

The company should have a good overview of overproduction, so it has to organize the work in such a way
the overproduction is clearly visible (Figure 13).

FROM ORDER ACCEPTENCE TO DELIVERY

NO ADDED VALUE ADDED

VALUE
WAITING & CONGESTION ACTIVITIES
MOVEMENT FOR WHICH
DAMAGED MACHINES THE BUYER IS
CORRECTION ALREADY MADE PRODUCTS WILLING TO
SEARCH & STORAGE PAY

> 90 % < 10 %

Fig. 13: Less than 10% of activities are used for creation of added value

Overproduction can be eliminated by informing and convincing the workers that they have to stop working
the moment when the daily production plan has been achieved. It is better that workers do not work than that
they do something that they do not need.

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 Workplace 1 Interim Workplace 2 Interim Packing
storage storage

Fig. 14: Waste No. 1: Overproduction (intermediate warehouses)

2.2. Waste of WAITING

Waiting times can be visible or hidden. A clearly visible form of waiting time can be seen in a case of a
worker who operates a single machine that has an automatic feed and stop device (Figure 15).

Fig. 15: Waste No. 2: Waiting

Hidden forms of waiting arise due to difficulties in execution of production process, such as waiting because
of a machine defect, shortage of material, damaged material, machine set-up, change of tools and devices, or
unauthorized leave of a worker.
By eliminating waste of waiting, other waiting-related waste is often also eliminated.

2.3. Waste of TRANSPORT

Waste of transport is a consequence of excessively long, intersecting transport paths, temporary storage, load
and unload, transport of pallets hither and thither.
Waste of transport is also caused by too detailed process breakdown and exaggerated division of work, due to
imprecisely defined intermediate warehouses and due to production in large series.
Waste of transport can be eliminated by optimizing transport paths, by defining exact locations and numbers
of intermediate warehouses and by a transition from large-series to small-series or even individual
production.

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 Workplace 1 Workplace 1

Transport Transport

Interim storage

Fig. 16: Waste No. 3: Transport

2.4. Waste of INAPPROPRIATE PROCESSING

Waste of inappropriate processing is a consequence of a poorly planned production process of the product.
The product does not satisfy requirements and has to be reworked; sometimes it is even useless.
The reasons for waste of inappropriate processing can be found by using the fishbone diagram.
Waste of inappropriate processing can be eliminated by a thorough analysis and continuous improvement of
manufacturing process.

Un
fin d es
ish ir a
ing bl e
re e d
qu g e
ir e
d

Figure 17: Waste No. 4: Inappropriate processing

2.5 Waste of UNNECESSARY INVENTORY

Waste of unnecessary inventory is similar to the waste of overproduction. Just like overproduction, supply of
too large quantities leads to the waste of unnecessary inventory. Costs upon exit from the warehouse consist
of costs for purchasing material and products, order-launch costs and inventory costs. High costs are therefore
related to storage and they can amount up to 20% of the product sales value (Figure 18).
Waste of unnecessary inventory can be minimized by defining optimal, maximum and minimum inventory,
as well as exact time when the ordered quantity should arrive at the warehouse.

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 Fig. 18: Waste No. 5: Unnecessary inventory

2.6. Waste of UNNECESSARY MOTION

Waste of unnecessary motion is clearly visible when holding and depositing products. Workers sit by the
conveyor belts and put together parts in order to make the final product. The main element of the assembly
line is a conveyor belt, so the waste consists of reaching and depositing.
The main reason for waste of unnecessary motion is the sitting work of workers, which reduces workers'
moving area and eliminates mutual help of workers.
Waste also occurs because of one-hand work: a worker holds the part with his left hand and he uses just one
hand for manufacturing activities (Figure 19).

Person 1 Person 1 Person 1 Person 1

W orker

Worker Worker Worker Worker

Fig. 19: Waste No. 6: Unnecessary motion

Waste of motion can be considerably reduced by a transition from a conveyor belt to the U-shaped production
lines.

2.7. Waste of MANUFACTURING DEFECTS

Waste of manufacturing defects appears on locations where semi-manufactured products accumulate and
therefore intermediate storage is required (Figure 20).
It is possible to eliminate waste of manufacturing defects by training workers to control the workplace,
product and circumstances:
The worker who manufactures a particular part should have the possibility of supervision how this particular
part was manufactured at his predecessor.
The worker who has just finished a particular part should check it immediately.

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The worker who has finished a particular part should also build it in in his workplace.

Production Control Repair

Transport Warehause

Packaging

Fig. 20: Waste No. 7: Manufacturing defects

3. Conclusions and findings

"Waste" is any activity that does not add value; there are more than seven ones that are listed above. By
knowing where possible waste occurs, every company should find for itself where the waste arises and then
eliminate it. This is the first step towards a full automation of manufacturing processes.
On the basis of these simple procedures the productivity of the employees (and the company) will rise. At the
same time the number of defects will reduce. If everything is done properly, the moral of employees will rise,
because they will be able to significantly contribute to easier and tidier work.
Designers of new products, production process planners and toolmakers have an important role in the
company. Also important is a dialog between them, which ensures execution of harmonized processes of new
product development, i.e.: processes without waste. Elimination of waste in the company is the first step
towards the automated production.

5. References

[1] Philipp Dickmann: Schlanker Materialfluss: mit Lean Production, Kanban und Innovationen,
Springer Verlag Berlin – Heidelberg, 2009
[2] Kenichi Sekine: Goldgrube Fertigung, Schnelle steigerung der Produktivität, Verlag Moderne
Industrie, 1995

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