“All we are doing is looking at the time line from the moment the
customer gives us an order to the point when we collect the cash. And we are reducing that time
line by removing the non-value-added wastes.” (Ohno, 1988)
- Overproduction: Producing items for which there are no orders.
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Waiting Time: Employees standing about. Inventory at stand-still.
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Unnecessary Transport: Moving material unnecessarily or long distances.
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Over-processing: Using more steps to produce a product than necessary.
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Excess Inventory: Retaining unnecessary inventory between process steps.
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Unnecessary Movement: Any wasted motion by man or machine.
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Defect: Making incorrect product.
Value is from the customer’s perspective, the customer being the person who uses the output.
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