Waste Reduction

FICCI

CE

Waste reduction The first step in improving a processes is to eliminate waste with the following techniques :I. Value-added assessment II. Eliminating non-value adding activities III. Minimize checks and inspections IV. Minimize administrative tasks V. Minimize storage and transportation activities

FICCI

CE

I. Value added assessment

Value to customer : First, the customer’s view point should be considered. The customers are only interested in receiving the product or service that satisfies their requirements. All activities that must be performed to cater to the customer’s requirements are value -added activities.

FICCI

CE

Does the activity add value to the customer ?

 Would any customer care if the activity was not performed ?  Would any customer object if the activity was not performed ?

FICCI

CE

II. Eliminate non-value adding activities

Value to business : There are many activities that may not add value from the customer’s point of view. Attending meetings, developing plans, compliance with regulatory guidelines, writing procedures etc are examples of activities that may not add value to the customers, but they do add value to the organization. Each of these activities must be carefully examined.

FICCI

CE

III. Minimize checks & inspections

• Checks and inspections may be necessary in a process, however they do not add value to the process. Each inspection point should be identified and challenged. • The next slide lists some questions to use in this challenge.

FICCI

CE

What if the inspection was eliminated?

• What if the inspection was eliminated? • Would the inspection be missed? • What is the potential impact in eliminating the inspection? • What potential consequences exist if the inspection is eliminated? • What is the likelihood that the inspection would have revealed a problem?

FICCI

CE

IV. Minimize administrative tasks

Administrative tasks often result in delays in process time due to excessive paper work, levels of reviews and multiple signatures (mostly by people who, it seems, are never available when needed). Reviews, approvals, signatures, preparing written documentation, making and distributing copies etc needs to be thoroughly reviewed..

FICCI

CE

V. Minimize storage and transportation activities

Sometimes storage and transportation are necessary evils but because they are both non-value adding they should be minimized. The purpose of just-in-time inventory systems to minimize the amount of inventory stored.

FICCI

CE

Minimize storage and transportation activities Transportation activities are also non-value adding. Often the relocation of single activity can significantly reduce the transportation requirements.