What is Waste ? Waste is something that adds no value to a process. It is not worth to pay for an action which does not acts any value. The important aspects of removing waste is that improving profit is a necessity as far as a business is concerned but it should not be by charging higher prices but reducing the costs or to be precise eliminating the unwanted costs that occur which adds no value, which is regarded as waste. The basic objective of a firm is to deliver on time, with perfect quality at the right price, which can only be achieved by the elimination of waste in the process. Toyota Production System and TIMWOOD or WORMPIT T – TRANSPORTATION I – INVENTORY M – MATERIALS W - WAITING O – OVER PRODUCTION O – OVER PROCESSING D - DEFECTS The Toyota Production system was invented in Japan by two Industrial Engineers, Mr. Taiichi Ohno and Mr. Eiji Toyoda and has been successfully implemented in the Car manufacturing Industry. The TPS is based on three principles :- 1. Design out Overburden (muri) 2. Design out inconsistency (mura) 3. Eliminate Waste (muda) There are 7 kinds of waste or “muda” as per the TPS to be eliminated in order to run the production process in a reduced cost without compromising on the quality. The seven wastes to be eliminated as per the TPS are as below : 1. Over production – Producing goods even before a requirement is ascertained is referred to as overproduction. The TPS finds this as a waste according to their system, of JIT (Just in Time) as it incurs costs on different spheres. It creates excessive lead times, high storage cost and difficulty in detecting defects. Schedule and Produce as per requirement is what TPS follows in order to avoid this waste. 2. . Waiting – Waiting may be referred to as a situation where in the process gets a halt due or slowdown as goods may not be in the flow of the process is on a wait. The Batch and queue system is where in such kind of a waste is observed to a large extent. A minute of waiting is to be considered as total loss to the entire production unit. The reasons for such waste are due poor movement of materials, long production runs and long distances between work centers. 3. .Transportation – This cannot be avoided in a production system but the transportation of product in a process is cost incurring without adding any value to the product. Excessive movements and Handling may lead to damages and deterioration of quality of the product to an extent. The flow of materials should be in such a pattern that it is transported to the next location or process at the minimal cost and time for which the layout and the material handling equipment should be put at the right place. 4 . Inappropriate Processing – The Production System of Toyota stress on the usage of the right process for the right output. It would be an additional burden on the organization to use high precision equipment for simple process. Usage of flexible equipment with low cost automation is the best way to eliminate waste in a process. 5. . Unnecessary Inventory – Excess inventory creates high lead times, takes up productive floor space, makes it difficult to identify defects and inhibits communication. The mentioned factors contribute to poor operating performance in the system. 6. . Unnecessary or Excess Motion – Motion does not add value to a product in the system. It can be either of people or machines. Inefficient layouts results in excessive motion wherein no value is created and the energy of human efforts are wasted. 7. . Defects – It is an easily detectable waste. It is referred to as the most significant manufacturing wastes because they can actually lead to the generation of additional wastes such as Overproduction, Transportation and Excess Processing. It includes wastes like scrap parts, products that require rework etc. In addition to this the Toyota Production System has identified another waste which actually is not manufacturing specific but is very much related. Non utilized talent is a waste that was identified as the 8th waste. This kind of a waste occurs in a manufacturing environment when the potential of an employee is not completely utilized or his efforts are in such a manner that it is not providing any value in the process. Boeing Production System and CLOSED MITT C – COMPLEXITY L - LABOR O – OVER PRODUCTION S – SPACE E – ENERGY D – DEFECTS M – MATERIALS I – IDLE INVENTORY T – TIME T - TRANSPORTATION The Boeing Production System in 2000 was designed through the customization of the Toyota Production System. They also follow the principle of cost reduction through the elimination of waste and follows the JIT style. The basis of their production is based on the Pull system. In 2003, they expanded the base of their system of production by the implementation of the 5S Concept related to Safety and in 2005 they reemphasized the elimination of waste in their production system foundation which constituted the finding of additional waste other than those observed in the Toyota Production System. The wastes thus detected were :- 1 . Energy – This was a waste that was not getting sufficient attention and was not addressed earlier. It was observed that equipment power and person power was going in vain the production process constituting no value to the product. The problem was to be addressed and it was necessary to avoid false efficiencies, excessive power utilization and unproductive operations 2 . Space – Space is a resource for a production unit and has to be effectively utilized. It is necessary to utilize the available space to maximum utility so that the layout is properly designed without any unwanted elements. Conservation of the space in the area in done by the proper arrangement of machines, people, workstations, storage etc. 3 . Time - Though Waiting was mentioned in the Toyota Production System, BPS observed time as an important constituent in the production system. They had the concept that time is a non-renewable resource and wastage of it in any form was a loss to the production system as a whole. They identified time in the form of waste in the process of waiting, shutting down key processes, breaks or lunch breaks and waiting for communication. In addition to the three wastes they also identified another important factor that could create waste based on their 2003 upgradation of their Production system by the addition of the Safety Concept (5S). As per this parameter they say that, any situation, condition or environment that has the tendency to cause danger or safety hazard should be addressed. Thus an 11th Waste as per the BPS was identified as Safety Hazards. Mapping TIMWOOD with CLOSED MITT It can be very well said that the wastes identified by the Toyota Production System stands as the base and all the new wastes identified by the Boeing Production System has been formulated by the in depth analysis of the basic parameters. The difference in the industry and the continuous improvement is what constituted to the advancement of the identification of the three new wastes as per the BPS. While mapping it can be seen that all the basic wastes that has been found out by the TPS stands aligned with wastes identified by the BPS. TIMWOOD CLOSED MITT Mapping Overproduction Overproduction and Energy The production should only be based on the customer need. Overproduction will lead to a wastage of energy of humans as well as machines constituting a total loss to the system. Waiting Labor and Time It is necessary to avoid any wastage of time in a Production system whether in the case of humans or machines. Transportation Transportation Movement inside a production unit should be made such that a product will receive value at minimum movement. Excess Motion Energy and Time Excess motion by humans or machines constitute the loss of energy without adding any value to the product. An excess motion in certain cases will consume additional time which also constitutes a wastage. Unnecessary Processing Complexity The Process should be in such a manner that they are as simple as possible with any complexity involved. Unnecessary Inventory Idle Inventory, Materials and Space Raw material, components or finished goods in the form of inventory requires a huge sum for it to be maintained and space to be consumed. Defects Defects Doing things twice constitute additional cost and therefor e it is necessary to avoid them and it would be much worse if those are not identified. The scrap waste and is a resultant of the improper usage of raw materials. From the above mapping it can be compared and contrasted that the 7 wastes of TPS and 10 Wastes of BPS are inter related and that the classical 7 wastes is what has constituted to the advancement of the 10 waste concept. Both are tried and tested methodologies. An organization can adopt either one depending on the nature of the industry. The choice is with the organization and the production system they follow. The selected methodology has to be implemented and diligently followed for it to succeed.