Losses in lean manufacturing

Lean manufacturing, also called Lean Manufacturing, or LIN, is one of the best solutions for organizations that want to increase productivity and minimize costs. The Lean Manufacturing concept allows the company to operate efficiently even in the face of severe competition.

Losses in lean manufacturing interfere with the achievement of the main goals of the LIN system. As well as the implementation of the main principles of the concept. Knowledge of the types of losses, understanding of their sources and ways of eliminating them allows manufacturers to bring the production organization system closer to ideal conditions. Or almost perfect.

The basic principles of lean manufacturing

The LIN concept adheres to certain principles, the implementation of which ensures the improvement of the quality of the final product and the reduction of losses. The principles of lean manufacturing include:

1. Determination of the final value of the finished product.
2. Understanding value streams.
3. Ensuring the constancy of these flows.
4. Pulling the product by the consumer.
5. Continuous improvement.

Lean manufacturing tools and techniques

Methodologies and tools of the Lean Management concept are presented in the table.

Types of production losses

Losses at any enterprise, both producing products and providing services, are an integral part of the work process, require minimization or complete elimination. The types of losses in lean manufacturing include:

• losses from overproduction of products;
• losses due to excess stocks;
• losses during transportation of raw materials, semi-finished products and final products;
• losses due to excessive movement and manipulation of employees;
• losses due to standby and downtime;
• losses due to defective products;
• losses from excessive processing;
• losses due to unrealized creative potential of employees.

Overproduction

One of the most important types of losses in lean manufacturing is considered the overproduction of products and services. It is understood as the manufacture of such a quantity of products or the provision of such a number of services that exceed the requirements of the customer. It is overproduction that provokes the appearance of other types of losses: expectations, transportation, excess reserves, etc.

Losses of overproduction at enterprises manufacturing any type of product can be represented by the accumulation of work in progress products, as well as the manufacture of units that are not required by the customer.

Overproduction in the office can be represented by the following examples:

• preparation of documents, reports, presentations and their copies, which do not affect the activities of the company and are redundant in the work process;
• processing of excess information that does not play an important role in the work of the company.

To reduce the loss of overproduction at the enterprise (in the organization) it is advisable to produce products (provide services) in small batches that satisfy the demand of the customer (client), or produce the number of units of products in accordance with a specific order. The implementation and operation of the quick changeover system - SMED will also contribute to the elimination of losses.

Excess stocks

Excess production stocks include:

• raw materials purchased but not required in production;
• work in progress, intermediate units;
• oversupply of finished products in excess of consumer demand and the number of products required by the customer.

Excess stocks are considered one of the most unpleasant types of losses. Excess raw materials and finished products require storage. Also entail the appearance of other production losses of power, additional funds are used to move raw materials and semi-finished products in the production process.

As a way to improve and get rid of excess inventory losses, it is proposed to supply materials, semi-finished products and finished goods units in certain sizes exactly when the production process requires it - using the Just-In-Time system.

Transportation

The system of transportation of materials and products during the production process if not properly organized can lead to many negative consequences. They are associated with excessive consumption of transportation capacities, fuel and electricity, losses are supplemented by irrational use of working time and the possibility of damage to products in the warehouse.

Nevertheless, provided that there is no negative impact on the quality of the elements of the production process, losses due to transportation are considered last.

Measures to deal with losses arising from transportation include redevelopment, following rational trajectories, and optimizing the production process.

Displacements

Losses on unnecessary movements are directly related to the actions of workers engaged in production. The actions of employees that are not beneficial to the work process, according to the principles of lean manufacturing, must be minimized.

Losses on unnecessary movements are found both in production and in office work conditions. Examples of such irrational movements can be:

• long search of documents or data due to their irrational location;
• liberation of the workplace from unnecessary documents, folders, stationery;
• irrational location of office equipment in the perimeter of the office, which forces employees to make unnecessary movements.

Measures aimed at improving the production process and minimizing loss of displacement include improving the regulations for the performance of a particular type of activity, training employees in the methods of rational work, adjusting labor discipline, as well as optimizing the production process or the provision of services.

Expectation

During the production process, anticipation involves downtime and loss of time by workers. The expectation can be caused by many factors, including an insufficient amount of raw materials, malfunctions in the operation of equipment, imperfection of the technological process, etc.

In production, equipment may be idle awaiting commissioning or repair, as well as employees waiting for components and elements necessary to continue work.

Company employees employed in office premises may experience waiting costs due to colleagues being late for important events and meetings, late submission of data, and malfunctions in office equipment.

In order to reduce the loss of expectation and their impact on the work of the enterprise or organization, it is advisable to use a flexible planning system and stop the production process in the absence of orders.

Excessive processing

Losses from excessive processing of products among all types of losses are most difficult to determine. Excessive processing implies such operations in the technological process, as a result of which a significant number of resources are consumed, and the value of the final product does not become larger. Excessive processing is the reason for the irrational use of time and capacity, as well as the loss of electricity due to its excessive consumption.

Losses from excessive processing are found both in enterprises manufacturing products, and in organizations and their parts that are not engaged in production activities. In production, examples of excessive processing of products can be a large number of product inspections and the presence of elements of finished products that could be dispensed with (for example, several packaging layers).

In office work, excessive processing can be expressed:

• duplication of data in similar documents;
• a large number of approvals of one document;
• numerous inspections, reconciliations and inspections.

Excessive processing may result from compliance with industry standards. In this case, minimizing losses is extremely difficult. If this type of loss is caused by a lack of understanding of the requirements of the customer for the products, it is quite realistic to reduce the effect of excessive processing on the final results of the activity. As ways to improve the situation, options such as outsourcing and the purchase of raw materials that do not need processing can be considered.

Defects

Losses on the elimination of defects are often characteristic of organizations that strive for the mandatory implementation of the production plan. Refining products that do not meet customer requirements due to marriage entails the expenditure of more time and resources. A serious consequence is economic loss.

Optimization of the production process, eliminating the possibility of defects and carrying out activities motivating employees to work without errors can be measures to eliminate defects in production.

Unrealized potential of employees

Jeffrey Liker owns the idea of ​​accounting for another type of loss, presented in the book "Toyota Tao." Losses of creative potential imply a lack of attention on the part of the company to the ideas and proposals of employees to improve work.

As examples of loss of human potential can be identified:

• performance by a highly qualified employee that does not correspond to his abilities and skills;
• negative attitude to initiative employees in the organization;
• imperfection or lack of a system through which employees can express their ideas or make suggestions.