The 7 Wastes, or Muda, encompass non-value-adding activities that hinder efficiency and increase costs. They include transportation, inventory, motion, waiting, overprocessing, overproduction, and defects. Eliminating these wastes through lean principles and continuous improvement enhances efficiency and customer satisfaction.
The 7 Wastes (Muda) are activities or processes that do not add value to the product or service from the customer’s perspective. These wastes consume resources without contributing to the value, and their elimination is essential for Lean Manufacturing. The 7 Wastes were originally identified by Taiichi Ohno, the father of the Toyota Production System.
Key Characteristics of the 7 Wastes
Non-Value Adding: Do not add value to the final product or service.
Resource Consumption: Consume time, materials, and other resources.
Inefficiency: Create inefficiencies and reduce overall productivity.
Customer Perspective: Defined from the viewpoint of the customer.
Importance of Understanding the 7 Wastes
Understanding and eliminating the 7 Wastes is crucial for organizations aiming to improve efficiency, reduce costs, and enhance competitiveness.
Improving Efficiency
Streamlined Processes: Eliminates unnecessary steps and activities.
Time Savings: Reduces the time required to complete processes.
Reducing Costs
Resource Optimization: Minimizes the use of resources such as materials, labor, and energy.
Cost Savings: Lowers operational costs by eliminating wasteful activities.
Enhancing Competitiveness
Quality Improvement: Enhances product and service quality by focusing on value-adding activities.
Customer Satisfaction: Increases customer satisfaction by delivering better quality products and services.
Components of the 7 Wastes
The 7 Wastes encompass various types of inefficiencies found in manufacturing and business processes.
1. Overproduction
Description: Producing more than is needed or producing too early.
Impact: Leads to excess inventory, increased storage costs, and potential obsolescence.
2. Waiting
Description: Time wasted waiting for the next step in the process.
Impact: Causes delays, reduces productivity, and increases lead time.
3. Transport
Description: Unnecessary movement of products or materials.
Impact: Increases handling costs and risk of damage, and does not add value to the product.
4. Extra Processing
Description: Performing more work or adding more features than what is required by the customer.
Impact: Wastes resources and time, and often increases the cost without adding value.
5. Inventory
Description: Excess products and materials that are not needed immediately.
Impact: Ties up capital, increases storage costs, and risks obsolescence and waste.
6. Motion
Description: Unnecessary movement of people or equipment.
Impact: Causes fatigue, increases the risk of injury, and reduces productivity.
7. Defects
Description: Products or services that do not meet quality standards.
Impact: Leads to rework, scrap, and customer dissatisfaction.
Identification Methods for the 7 Wastes
Several methods can be used to identify the 7 Wastes in processes and operations.
1. Value Stream Mapping
Description: A visual tool that maps out all steps in a process to identify value-adding and non-value-adding activities.
Application: Helps visualize the flow of materials and information and pinpoint areas of waste.
2. Gemba Walks
Description: A practice where managers and leaders observe the actual work process on the shop floor.
Application: Provides firsthand insight into operations, helping to identify and understand waste.
3. Kaizen Events
Description: Focused, short-term projects aimed at improving specific areas of a process.
Application: Engages teams in identifying and eliminating waste through continuous improvement activities.
4. Root Cause Analysis
Description: A systematic method for identifying the underlying causes of problems or defects.
Application: Helps trace back waste to its origin and develop effective solutions to eliminate it.
5. 5S Audits
Description: A workplace organization method that includes Sort, Set in order, Shine, Standardize, and Sustain.
Application: Improves workplace efficiency and helps identify areas of waste through organization and cleanliness.
Implementation Strategies for Eliminating the 7 Wastes
Several strategies can be employed to effectively eliminate the 7 Wastes from processes and operations.
1. Just-In-Time (JIT) Production
Description: A strategy that aligns production schedules with customer demand.
Application: Reduces overproduction and excess inventory by producing only what is needed, when it is needed.
2. Continuous Improvement (Kaizen)
Description: A philosophy that encourages constant, incremental improvements.
Application: Involves employees at all levels in identifying and implementing improvements to eliminate waste.
3. Lean Manufacturing Techniques
Description: A set of principles and practices aimed at reducing waste and improving efficiency.
Application: Includes methods such as Value Stream Mapping, 5S, and Kanban to streamline processes.
4. Automation and Technology
Description: Implementing automation and advanced technologies to optimize processes.
Despite its benefits, eliminating the 7 Wastes presents several challenges that need to be managed for successful implementation.
Resistance to Change
Employee Buy-In: Overcoming resistance from employees who are accustomed to existing processes.
Cultural Shift: Promoting a culture that embraces continuous improvement and waste elimination.
Identifying Waste
Visibility: Some wastes, such as extra processing and waiting, can be less visible and harder to identify.
Complex Processes: Complex processes may require detailed analysis to uncover hidden wastes.
Sustaining Improvements
Continuous Effort: Maintaining the momentum of continuous improvement initiatives over time.
Standardization: Ensuring that new processes and improvements are standardized and sustained.
Resource Allocation
Time and Effort: Allocating sufficient time and effort to identify and eliminate waste.
Investment: Investing in training, technology, and process improvements.
Best Practices for Managing the 7 Wastes
Implementing best practices can help effectively manage and overcome challenges, maximizing the benefits of eliminating the 7 Wastes.
Foster a Culture of Continuous Improvement
Employee Involvement: Engage employees at all levels in identifying and eliminating waste.
Recognition: Recognize and reward contributions to continuous improvement initiatives.
Implement Lean Tools and Techniques
Value Stream Mapping: Use Value Stream Mapping to visualize and analyze processes.
5S Implementation: Implement the 5S methodology to organize and streamline the workplace.
Use Data and Metrics
Performance Measurement: Track key performance indicators (KPIs) related to waste and efficiency.
Root Cause Analysis: Use data to identify root causes of waste and develop targeted solutions.
Standardize Processes
Standard Work: Develop and document standard work procedures to ensure consistency and sustainability.
Training: Provide ongoing training to ensure employees understand and follow standard processes.
Continuously Monitor and Improve
Regular Audits: Conduct regular audits to identify new areas of waste and assess progress.
Feedback Loops: Establish feedback loops to gather input from employees and continuously improve processes.
Future Trends in Managing the 7 Wastes
Several trends are likely to shape the future of managing the 7 Wastes and their applications in Lean Manufacturing and Lean Thinking.
Digital Transformation
IoT and Big Data: Leveraging Internet of Things (IoT) and big data analytics to monitor and optimize processes.
Automation: Increasing use of automation and robotics to eliminate manual waste and enhance efficiency.
Integration with Industry 4.0
Smart Manufacturing: Integrating Lean principles with Industry 4.0 technologies to create smart manufacturing systems.
Real-Time Data: Utilizing real-time data to identify and respond to waste more effectively.
Sustainability and Green Manufacturing
Environmental Impact: Reducing environmental impact by eliminating waste and promoting sustainable practices.
Resource Efficiency: Enhancing resource efficiency to support sustainable growth.
Enhanced Training and Education
E-Learning: Expanding e-learning platforms to provide accessible and flexible training on Lean principles and waste elimination.
Professional Development: Offering continuous professional development programs to keep employees updated on best practices.
Global and Cross-Industry Applications
Global Standards: Developing global standards and best practices for waste elimination.
Cross-Industry Learning: Applying Lean principles and waste elimination techniques across various industries.
Conclusion
The 7 Wastes are a critical concept in Lean Manufacturing and Lean Thinking that impact efficiency, costs, and overall productivity. By understanding the key components, identification methods, implementation strategies, benefits, and challenges of the 7 Wastes, organizations can develop effective strategies to eliminate waste and achieve operational excellence. Implementing best practices such as fostering a culture of continuous improvement, using Lean tools and techniques, leveraging data and metrics, standardizing processes, and continuously monitoring and improving can help maximize the benefits of eliminating the 7 Wastes.
Key Highlights – 7 Wastes (Muda)
Concept: The 7 Wastes, also known as Muda, form a foundational concept in lean thinking and process improvement methodologies.
Types: These wastes encompass seven categories: Transportation, Inventory, Motion, Waiting, Overprocessing, Overproduction, and Defects.
Lean Philosophy: Rooted in the lean philosophy, the goal is to eliminate these wastes to enhance efficiency and optimize value delivery.
Benefits: Addressing the 7 Wastes leads to streamlined operations, reduced costs, improved quality, and heightened customer satisfaction.
Challenges: Identifying wastes can be complex and requires thorough process analysis. Implementing changes demands organizational commitment and overcoming resistance.
Examples: In manufacturing, excessive inventory or overproduction; in service sectors, waiting or unnecessary steps in processes.
Continuous Improvement: Waste reduction is a continuous journey, driving ongoing process refinement and continuous value enhancement.
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.
Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.
Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.
Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.
Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.
Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles.
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).
Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.
Business modelinnovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.
A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.
DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.
Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.
eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.
Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.
A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.
The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.
A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.
As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.
Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.
The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.
RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.
Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.
The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.
The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.
As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.
Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.
Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.
Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.
Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).
Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.
Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.
The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.
The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
