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How to optimize your process with Lean principles

The term Muda is a Japanese word meaning waste. It refers to any activity that does not add value in the eyes of the customer.

The Lean approach aims to reduce these wastes through continuous improvement.

There are 8 types of Muda:

• Overproduction: Producing more than what is needed by the customer.
• Waiting: Time spent between tasks or within a task where no value is added.
• Transportation: Unnecessary movement of people, tools, stocks, materials, or products.
• Processing: Tasks performed that do not add value to the customer or processes that are too complex.
• Inventory: Excess stock that leads to wasted space and financial immobilization.
• Motion: Unnecessary movement of people or equipment that leads to additional work and wear.
• Defects: Errors or defects that require rework or correction.
• Skills: Underutilization of employee skills and knowledge

“Eliminating waste is the key to efficiency and continuous improvement. In the pursuit of perfection, every unnecessary movement, task, or process must be identified and eradicated.”

A simple change that improved our performance by saving time and ressources

This example describes a case of applying lean methods to improve the efficiency and performance of a warehouse process.

Here are some possible lean tools and principles that are relevant :

• Bottleneck analysis:
  This is a tool to identify and eliminate the constraints that slow down the flow of value in a process. We faced a bottleneck at the warehouse due to the high demand of orders, which affected the delivery of parts and equipment. We used bottleneck analysis to find and address the root causes of the problem.
  
  
• Gemba Walk:
  This is a principle that means “go and see” the actual place where the work is done. We conducted a Gemba walk to observe and understand the current situation of the warehouse and the purchasing departments. We also discussed with the people involved in the process to get their feedback and insights.
  
  
• Value stream mapping:
  This is a tool to visualize and analyze the flow of materials and information in a process, from the customer’s perspective. We mapped the current flows of materials and people, and identified the value-adding and non-value-adding activities. We also designed a new flow to eliminate waste and optimize value.
  
  
• Unnecessary rehandling:
  This is the unnecessary movement of materials or products within a process, which adds no value but consumes time and resources. In our industrial site optimization project, we significantly reduced unnecessary rehandling. Before Lean principles, materials were moved multiple times between locations, causing extra handling and damage risks. Streamlining the workflow and using visual management minimized material rehandling. This cut down time and labor spent moving materials, supporting waste reduction.
  
  
• Heijunka (Load Balancing):
  This is a principle that means “leveling” the production volume and variety to match the customer demand. We simplified the process and met the needs of the warehouse’s customers and the Industrialization process, mainly the workshop. We reduced the number of picking or work points by 87%, which improved the productivity and quality of the process.
  
  
• Poka-yoke (Mistake Proofing):
  This is a tool to prevent or detect errors in a process, by using simple devices or methods. We achieved this by providing the warehouse with laptops and a secure wifi terminal, which enabled better communication and coordination among the departments.
  
  
• 5S (Sort, Set in order, Shine, Standardize, Sustain):
  We also implemented the 5S methodology separately as a tool to organize the workspace efficiently, creating a cleaner, more organized, and safer work environment. This contributed to error reduction, improved efficiency, and enhanced overall process effectiveness.

Case studies of how businesses have tackled muda in their operations

• Transportation Muda : Unnecessary movement of people, tools, stocks, materials, or products.
  
  Toyota, the pioneer of Lean manufacturing, recognized the importance of reducing transportation waste. In their production system, known as the Toyota Production System (TPS), they implemented concepts like “Just-In-Time” manufacturing to minimize the need for excessive movement and transportation of materials within their factories. By strategically placing materials and components in close proximity to the production line and using Kanban systems to signal when materials should be replenished, Toyota significantly reduced transportation waste, leading to greater efficiency and cost savings.
  
  
• Processing: Tasks performed that do not add value to the customer or processes that are too complex
  
  Amazon, continually works to reduce processing waste in its order fulfillment centers. They employ advanced automation and robotics technology to simplify and streamline their order processing operations. For instance, robots are used to transport shelves of products to human workers, reducing the complexity of manual material handling and allowing employees to focus on value-added tasks such as packing and quality control. This approach has improved order accuracy and processing speed, benefiting both the company and its customers.

In Summary, Reducing waste and optimizing efficiency: A Lean approach

• Muda, or waste, refers to any non-value-adding activity in the eyes of the customer.
  
• Lean principles aim to eliminate waste through continuous improvement.
  
• Eight types of Muda include overproduction, waiting, transportation, processing, inventory, motion, defects, and skills.

Case Study: Reducing Waste of Movement by 87%:

• Bottleneck Analysis: Identifying and eliminating constraints in the process.
  
• Gemba Walk: Observing the actual work environment and gathering insights.
  
• Value Stream Mapping: Visualizing and optimizing material and information flow.
  
• Unnecessary Rehandling: Reducing movement of materials within the process.
  
• Heijunka (Load Balancing): Leveling production to match customer demand.
  
• Poka-yoke (Mistake Proofing): Implementing error prevention methods.
  
• 5S (Sort, Set in order, Shine, Standardize, Sustain): Organizing the workspace for efficiency.

Case studies of businesses addressing waste mudas:

• Transportation waste:
  • Toyota’s “Just-In-Time” manufacturing approach minimizes excessive material movement.
  • Materials placed strategically near production lines and Kanban systems reduce waste.
    
• Processing waste:
  • Amazon simplifies order processing using automation and robotics technology.
  • Robots transport shelves, reducing manual handling and enhancing order accuracy.

“Muda is not only about reducing waste; it is also about managing resources wisely.”

Taiichi Ohno