Sunday, July 08, 2007

Management Lite & Ezy 39 – Ohno’s Seven Wastes

In lean production, waste refers to anything that does not add value to a product from the customer’s perspective.

Taicho Ohno, the Toyota’s executive who spearheaded Toyota Production System, identified seven categories of wastes which are to be reduced or eliminated. They are:

  1. Overproduction – producing more than the customer orders or producing early (before it is demanded) is waste. Inventory of any kind is usually a waste.
  2. Queues – idle time, storage, and waiting are wastes.
  3. Transportation – moving material between plants, between work centers, and handling more than once is waste.
  4. Inventory – unnecessary raw material, work-in-process, finished goods, and excess operating supplies add no value.
  5. Motion – movement of equipment or people that adds no value is waste.
  6. Overprocessing – work performed on the product that adds no value is waste.
  7. Defective product – returns, warranty claims, rework, and scrap are wastes.


Jay Heizer & Barry Render, “Operations Management”, 8th edition

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