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Waste or non-value added activities, as defined in the lean terminology. These wastes can be
categorized into seven types: waste due to overproduction, unnecessary waiting, unnecessary
transportation, over-processing, excess inventory, unnecessary movement, and defects. The term
“overproduction” refers to the production of more product than the customer needs. Over-production
results in higher cost in manufacturing and other non-manufacturing business functions. The
overproduction can also lead to excessive inventory, long process set-up, and poor space utilization in
the warehouse.
Overproduction may also result in the consumption of too many resources, including labor,
machines, space, and energy. The term “unnecessary waiting” refers to non-productive human or
machine time, for instance; waiting for parts, work, quality, checking, and system downtime.
Unnecessary waiting may be caused by inappropriate communication, lack of skill or ineffective
production planning in the workplace. Unnecessary waiting can lead to stops in production, bottlenecks,
long lead times, and missed delivery dates. The term “unnecessary transportation” refers to excessive
moving or handling of materials or parts e.g., transporting work-in-process or transporting parts long
distances.
Transportation waste may be caused by inappropriate process and value stream flow designs.
Transportation waste can lead to increased production time, increased work in progress, and suboptimal
use of resources and floor space. The term “over-processing” refers to unnecessary or inefficient
process steps. For example poorly selected equipment, duplicate paperwork, etc. Over-processing may
be caused by inappropriate standard operating procedures or lack of process understanding. Over-
processing can lead to increases in production time and interruptions in production flow. The term
“excess inventory” refers to unused or unnecessary parts, materials, or products e.g., raw materials,
work-in-process, finished goods, office supplies or warehouse space.
Excess inventory is held to cover up problem areas, often stemming from unreliable raw
material suppliers, inaccurate forecasting, unpredictable machine breakdowns, or repair times. Excess
inventory can lead to increased costs and may create waste in many forms, including tracking, additional
storage facilities, etc. The term “unnecessary movement” refers to non-productive motion of workers,
for example searching for tools or unnecessary walking. Unnecessary movement may be caused by
inadequate worker training, lack of standard operating procedures, or poor work and equipment layout.
Unnecessary movement can lead to increased production time, costs, and/or energy usage. The
term “defects” refers to rework or errors in products or processes e.g., missing parts, scrap, rejects, and
recalls. Defects may be caused by inadequate worker training, too many product models, poor work and
equipment layout, or poor process documentation. Defects can lead to added costs, inventory
problems, delivery failures, and/or decreased customer satisfaction. The benefits of these various lean
tools have been documented in the literature.
2.4.2 Lean System for Warehouse Design and Production Scheduling
The idea of integration of production processes in a continuous flow was generated from Henry
Ford at Toyota (Levy, 1997). The lean system introduced at Toyota is called the Toyota production
system which aims to optimizer the production through elimination of waste,. It is also referred as lean
manufacturing system or Just-in-Time system. The term ‘lean’ is also referred as ‘lean thinking’ as it aims
for continuous improvement in production system. Therefore, it becomes important to study this
concept in-depth for designing warehouse design and production scheduling.
As per Levy (1997), lean system is one of the most efficient systems which need to be
incorporated in the warehouse design and production scheduling. Lean system is mainly based on
efficiency optimization which is the key objective of every organization.
The techniques of pull and push are used in the lean manufacturing. Womack and Jones (2003)
defined the pull technique is the movement of inventory in the warehouse that signals the previous
stage for the replenishment is required for the next product. These signals are kanban. According to
Beamon & Bermudo (2000), there is less amount of inventory held within the pull environment, which
can compromise the situation if the lead time is too long. On contrary to pull, the push technique is
based on forecasts and involves functioning, which is even not required. This assists in availability of the
abundant goods at a time, while the back-inventory is available. Michael (2002) found the effectiveness
of the pull techniques in the multiple paths to achieve lean operations as compared to the pushing
techniques, which involves meeting the forecast by pushing the batch of inventory.
The concept pull is also linked with the traditional concepts of lean production material resource
planning (MRP), while the concept of push is related to the advance ERP systems. Langenwalter (2000)
and Beamon & Bermudo (2000) argued the pull systems are based on the production plans that are
initiated, when the orders are placed for the products. On the contrary, the push systems are based on
anticipating the demand of products, considering the warehouse environment forecasting the needs of
excessive products and allocating it. However, the pull technique in warehouse environment will
consider and manage the inventories depending on the customer demands (Greenwood, 2006). Thus,
there is inconsistency in the concepts of pull and push concepts. The flow of information and material is
also different, following these techniques. The push operations are based on the flow of information,
with respect to the orders and depend on the other operations. On the other hand, the pull system
focuses on the kanban signals, where the flow of information is opposing the flow of product. Beamon &
Bermudo (2000) suggests the implementation of pull and push systems together can help achieving the
customer demand and reducing the high cost for holding inventories. Beamon & Bermudo (2000) have
also provided the solution for implementing the pull and push techniques by avoiding the weaknesses of
each concept and driving the benefits. This automated solution proposed by Beamon & Bermudo (2000)
is known as the hybrid push/ pull algorithm. This algorithm is useful for the various stages of supply
chain in the industries, where the warehouse is an important component of the supply chain.
Waste can be defined as anything that does not add value to the services and products.
Since waste is the symptom not the root cause of the problem, it indicates the problems within
the organization and system. The seven forms of wastes that are common in Corus are listed
below:
Inventory –holding too much of stock or inventory negatively impacts the effectiveness
Waiting – corresponds to the material and individual waiting rather than moving at a
speed of demand. Variations in the procedures can lead to waiting. Case in point, waiting
for the outcomes of the production processes, waiting in queues or ensuring that all the
Transportation – Transportation is the form of waste that involves any movement of the
individuals or items that does not add value. Even though the transportation cannot be
completely eradicated from a system, all possible steps must be taken to minimize it with
Defects – Every organization should aim for zero defects for the reason that a defect that
is passed along the processes can amplify the impact of the initial defect.
Staff movement –Unnecessary movement of the staff is also considered as a waste.
Unnecessary processing –This type of waste correspond to the utilization of the complex
One of the most effective ways to increase the profitability of any business is to eliminate
the waste. Processes involved in the manufacturing of any machine either add value or waste to
the final product. In order to eliminate waste, it is highly imperative to comprehend what waste is
and where it exists. Seven deadly wastes were identified as the part of Toyota production system:
Transport
Every time a project is moving it stands risk for delayed, lost, damaged, and resulting in
additional cost. No transformations are made in the product due to transportation that a customer
is supposed to pay for. In fact transporting item between the processes adds cost instead of
adding value to the product. Moreover, excessive handling and movement may lead to damages
Inventory
Inventory refers to holding too much of stock or inventory negatively impacts the
effectiveness and quality as it utilizes large space and resources. Abundance inventory tends to
shroud issues on the plant floor, which must be recognized and determined keeping in mind the
end goal to enhance operating performance. Overabundance inventory increases lead times,
devours profitable floor space, defers the distinguishing proof of issues, and represses
producers have possessed the capacity to enhance client benefit and slash inventories and their
related expenses.
Motion
that has significance to safety, wear, and damage. It also entails the operating expenses and fixed
assets. This type of wasted associated to ergonomics and is found at all occasions of reaching,
lifting, walking, stretching and bending. Processes that involve excessive motions ought to be
analyzed and redesigned for enhancement with the involvement of plant personnel.
Waiting
Waiting corresponds to the material and individual waiting rather than moving at a speed
of demand. Variations in the procedures can lead to waiting. Variations in the procedures can
lead to waiting. Case in point, waiting for the outcomes of the production processes, waiting in
queues or ensuring that all the equipment is geared for a specific action
Overproduction
Overproduction is the type of waste that results due to production of goods more than
demand. Production of large batches is one common practice that leads to the waste for the
reason that customers often demand changes over long times large batches. Overproduction
results in excess inventory that in turn requires the expenditures of resources on preservations
Over Processing
Over processing manifest at any occasion when more work is done on a part than
required by the customers. This also includes utilization of tools that are more expensive,
Defects
Additional cost is incurred whenever defects occur due to reworking of the defected part.
Associated costs include capacity loss, rescheduling, re-inspecting and quarantining inventory. In
majority of the firms, the total cost of defects is often a significant percentage of the total cost of
manufacturing.
The concept of Lean was first introduced by Toyota to improve the flow and eradicate the
waste from processes. Generally, Lean refers to getting the right things at the right time at right
place and in the right quantities while being open and flexible towards changes and reducing
waste. Likewise, lean production corresponds to the production processes that minimize waste.
The ultimate aim of the Lean processes is to utilize resources such as time, materials and space in
an efficient manner.
thereby, increasing productivity as well as profitability. The just-in-time principle is one attribute
of lean production that allows the organization to save costs of the stock. The concept of just-in-
time implies producing and supplying the items and services when they are required. Any
manufacturing company or business acquire the limited volume of raw materials and just
finished products to fulfil the demands of the customers. Well-organized systems are required to
make sure that goods arrive and supply reach to the customers on time. This diminishes the cost
and, in turn, augments the return on assets on the investment for the stakeholders. Tools that
address the eradication of non-value added steps, visual control, standardization and workplace
organization are applied to surpass customer expectations, eliminate waste and improve the flow.
Womack and Jones (1996) introduced five core principles to represent Lean that are listed below:
Strive for the perfection so that the amount of time and number of steps as well as
In useful terms, one of the basic presumptions made by Lean is that associations are
procedure or client’s excursion instead of streamlining individual offices. This point of view,
which is generally connected in the industry, is often alluded to as the “procedure based
perspective” of associations.
Continuous Improvement Processes in Toyota
continuously explore the strategies for enhancing the quality of their products and services,
operational systems and customer satisfaction (Zangwill & Kantor, 1998). The continuous
Communication
governed by the continuous improvement and it emphasized the need of engaging each employee
Involvement
workforce.
Process development
The initiation of continuous improvement process in Toyota partly involves the creation
programs for its employees on regular basis. The purpose of these training programs is to
enhance the understanding of the employees regarding the significance of continuous
improvement. Such type of education and awareness courses encourage the employees to work
in groups and share their ideas. They additionally intend to change the behavior of the employees
A continuous improvement culture implies that each employee can contribute his ideas
and opinions regarding the changes that should be made in the processes to enhance their
Corus, the continuous improvement manager is responsible for coordinating all the procedures.
An association needs to know where it is going keeping in mind the end goal to have the capacity
to put in place the assets it needs to accomplish its goals. Scunthorpe plate plant has set out a 5-
year vision improvement arrangement which assist in establishing the continuous improvement
culture for the business. Everybody in the association needs to comprehend and effectively
bolster the arrangement. Workshops for all representatives have occurred to clarify the vision
Process Mapping
With the assistance of the continuous improvement coaches, the employees of Corus
have constructed maps of their procedures. These maps display the link between the
manufacturing phases and the flow of information that is required. In addition, the map shows
the costs, delays, stocks, inspection points, rework cycles, number of products and details of
tonnages. Current state value stream mapping is the first step of this procedure. In the next phase,
the appearance of the future state map is decided. This indicates what the Corus needs to do to
accomplish this stage; for instance, investing in new equipments and procedures. Currently, the
plate mill of Corus consists of 16 system maps. All the maps link with each order in order to
Stock rotation guarantees that the plates for one client don't get to be covered underneath
The required measure of piece steel ('feedstock') must be before the factory by the
By moving plates in the arranged week, the factory is legitimately paced and every single
"downstream" process, (for example, cutting, levelling and review) can be booked in like
manner.
Utilizing the value stream maps has offered Corus to enhance processes flow with
processing streams and the workplace. It has likewise lessened superfluous movement,