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40   Chapter Two


           2.5.1 Waste elimination in process
           In observing the mass production, Tachii Ohno (Ohno 1990, Liker
           2004), an engineering genius of  Toyota, who is the pioneer of the
           Toyota production system, identified the following “seven wastes” in
           production systems:
           1. Overproduction: producing too much, too early
           2. Waiting: workers waiting for machines or parts
           3. Unnecessary transport: unnecessary transporting of moving parts
           4. Overprocessing: unnecessary processing steps
           5. Excessive inventory: semifinished parts between operations and
              excessive inventory of finished products
           6. Unnecessary movement: unnecessary worker movements
           7. Defects: parts that need rework or are scrap
           These seven wastes are called  muda, which is a Japanese term for
           missed opportunities or slack. These items are considered waste
           because in the eyes of customers, these activities do not add value to
           the products that they wanted.
             In lean operation principles, the seven wastes can be identified by the
           value stream mapping method. The waste caused by overproduction
           can be reduced or eliminated by a pull-based production system. The
           waste caused by excessive inventory, waiting, unnecessary transport,
           and unnecessary movement can be greatly reduced by one-piece flow
           and work cell (cellular manufacturing). A setup time reduction tech-
           nique is often necessary to make one-piece flow possible. Use of one-
           piece flow and work cell also makes defect detection easier. Besides lean
           operation principles, other techniques, such as ergonomics, poke yoke
           (foolproof), and statistical process control, should be applied to reduce
           the waste caused by defects and unnecessary movements.
             Figure 2.13 is a simplified value stream map for a production process.
           Clearly, based on the definition of seven wastes, the staging, transporta-
           tion, setup, and inspection are nonvalue-added steps; casting, machining,
           and assembly are value-added steps. In Fig. 2.13, the horizontal length of
           each step is proportional to the time required to do the step. The total
           time duration from the beginning of the process to the end of the process
           is often called the process lead time. Clearly, in the above example, the
           value-added time is a small portion of the total lead time. In many pro-
           duction systems, the ratio of value-added time to production lead time
           can be used as a measure of process efficiency, specifically:

                           P ocess efficiency =  value-added time       (2.2)
                             r
                                              total leaad time
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