Q 550. Compare the wastes of Overproduction vs Overprocessing. Provide at least 2 examples of each from both Manufacturing and Service sectors. What are the ways in which these wastes can be handled?

 

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Overproduction and Overprocessing are 2 categories of Lean wastes that Organizations most commonly use in their journey towards lean. 

 

Service:

1. Overprocessing 

Exhaustive testing practices might not be required for all types of project. Ideally , we should do a thorough testing prior to any deliverable to the client. Typically, in Data Engineering projects thorough Unit Testing, System Testing, Integration and Acceptance Testing including regression and smoke testing is recommended. There are consulting and predictive Modelling projects where exhaustive testing is not required. It is ok to have Unit testing done with Client provided test data followed with interim client demos and capture client review comments. Exhaustive testing will lead to Overprocessing.

 

2. Overproduction

Release of processes that are not required by the project teams leads to overproduction and loss of time and effort in creating, reviewing and releasing them. For e.g. a start-up company which has embarked on the journey of process standardization might not need a tailoring and deviation process. This waste can be handled by waiting for the organization to mature and standardize so that standardization is a way of life and deviating from it will need process to be followed.

 

Manufacturing:

1. Overproduction

In Bakery shops, baking and preparing cakes without demand leads to overproduction. Cakes which have icing on it are such items that do not last beyond a day or 1.5 days. Hence, overproduction leads to waste of money, effort and time. The seller should forecast based on the time of the year, i.e. probable marriage dates etc. and then over produce. This can be handled by having tie ups with bigger hotels wherein beyond a certain time i.e. 10pm the cakes etc. are delivered to them. Bigger brands typically have a higher rate of footfall than the smaller joints.

 

2. Overprocessing

Tailor creating clothes - The tailor should add his/her creativity to the extent that is required by the client else the clothes will appear overdesigned and will not fit the purpose. Such waste can be handled by waiting for the right occasion where the clothes are befiting.

 

 

 

Overproduction is producing more then needed and fasted then needed.

1. Manufacturing the product to improve OEE.

2. Entering repetitive information or data on multiple documents.

 

Overprocessing is the addition task or activity that adds no value to the process or product.

1. Providing more quality than the standard specification. extra polishing, over painting, extra wrapping while packaging.

2. Defining the various unnecessary terminologies in a report. Multiple approvals or signatures in a report.

 

Overproduction can be reduced by doing proper and effective production planning.

Overprocessing can be reduced or eliminated by clearly defining the work steps in SOP or Work Instructions or optimizing SOPs and Work Instructions.

Both overproduction and overprocessing are two of the 8 wastes according to Lean.

 

Overproduction:  Producing sooner and faster than required and in more quantities than needed is overproduction.  Overproduction results in waste of time, labor and materials thereby creating too much inventory which results in extra cost.  If the overproduced product is seasonal, it would either end up as a scrap or would add to the storage cost and if it is perishable then it would have to be discarded.  Poor estimation of customer demands often results in overproduction.

 

Examples of Overproduction:

Service Industry:  a)  Huge meals in the restaurants.  b)  Creating way too many reports and records than actually required. c) More number of beds in the hospital than required.

Manufacturing Industry:  a).  Keeping labor and material on a standby.  b)  Warehouses filled with overproduced unsold goods.

 

How to Prevent Overproduction:

1). Using TAKT time to gauge customer’s demands.

2). Practicing Just-In-Time inventory management.

3). Using production levelling by both Volume and Type.

4). Doing production control by using supermarkets where continuous flow is not possible.

5). Having a production scheduling point called as a “Pacemaker Process” in place preferably towards the end of the production line that signals a pull to the upstream processes for production thus enabling a continuous flow for the downstream processes.

 

Overprocessing:  Any additional work that does not add any more value to a product than expected is called overprocessing.  Overprocessing often results in a reduced overall equipment and people effectiveness. The primary reason for overprocessing is not having a common and clear understanding on the critical to quality and critical to acceptance parameters of the end product.

 

Examples of Overprocessing:

Service Industry:  a). Many approval levels warranting quite a few signatures on a document for even smaller requests.  b). Recommending too many diagnostic tests to patients. c). Entering same data at multiple places. 

Manufacturing Industry:  a).  Using advanced machinery for a product that could have been easily produced using a basic machinery.  b)  Adding more attributes/features in a product than actually needed.

 

 How to Prevent Overprocessing:

1).  To have a clear understanding and communication on the critical customer requirements and updates.

2).  By doing VA/NVA analysis for each activity and develop a Standardized Work for the entire process. This should be done in an iterative manner for the entire process flow as more activities might get added due to changes in customer requirements.

3).  Keeping it simple by eliminating complexities that arise out of excessive documentation, instructions, manuals etc.

4). Automate the process steps where possible to reduce or eliminate the chances of overprocessing.

5). Revisiting steps 1 through 4 periodically to ensure sustenance.

Over Production is producing more than what is required, producing earlier or faster than when is required to be used by the end customer. 
Over Processing is a non-value-added processing step and the efforts add no value to product or service from clients and customers standpoint 

 

 

Over production examples:
Producing more than client’s demand of good, service, product, detail, or any information for that matter. 
•    Production of excessive number of quantities than required by the user.
•    Production of reports which are not used. 
•    Buying before the need is specified.
•    Huge snacks in bars
•    Passenger trains with more wagons than necessary
•    Overstaffed sales stores
•    Too many meetings or the wrong folks in meetings
•    Printing all forms instead of obtaining the information in a laptop
•    Multiple forms with same data
•    Staff meetings held when it could have been communicated in an electronic mail.
•    Unstable production scheduling.
•    Incorrect forecasting model
 

How can we eliminate overproduction?

Quote

“An hour of planning can save you 10 hours of doing”.

Better planning to understand customer demands.
Sending out survey to find out how many people will attend the meeting to plan for snack boxes.
Clarity on – How much, when, what can avoid over production situations.
 

Over Processing Examples:
Each pointless activity which is required to produce a service, goods based on customer’s expectations.
Doing the same thing for the second time (e.g., double check of computations).
•    Signs, forms, manager’s approvals which are not required to complete the task
•    Re-writing of data which was already inserted (e.g., from pdf to the system)
•    Correction of previously performed work.
•    Software features that no one ever accessing it.
•    An MRI when an X-ray would be adequate.
•    Complex purchasing procedures with multiple approval levels.
•    Reports reviewed by multiple people or multiple signoffs.
•    Passing customer calls around. 
•    Painting / polishing on unseen/hidden areas. 
•    Doing unnecessary quality check when not required 

 

How can we eliminate over processing?
Getting to know about customers expectation and converting them to meet the precise specification. 
We can use, VSM to identify VA, NVA and can essentially reduce the over processing. 
 

The 8 wastes described in the Lean philosophy very aptly define factors that affect the capability of a system to reach maximum efficiency. Overproduction is where an output is produced more or sooner than required. Over processing is unnecessary additional work is done which adds no value to the output.

Manufacturing:

Overproduction

1) The assembly line of a mobile phone manufacturing company has an imbalance. Phase n is unable to handle the volume produced by phase n-1. This results in inventory waste at phase n due to an overproduction at phase n-1

2) A restaurant cooking amount of food which is more than volume of customers expected. The remaining food goes to waste

Over processing

1) A hand sanitizer company adds a fancy package in which the bottle is sold. Customers do not care about how fancy the package is for a product like hand sanitizer

2) A desk calendar manufacturer uses an extremely expensive quality of chart paper which increases the cost of the product

 

SERVICE INDUSTRY

Overproduction

1) Recruiting more than necessary people without a scope to place them in operations

2) Generating more sales leads that the operations has the capacity to handle

 

Overprocessing

1) Creating a customer dashboard (MIS) with additional unnecessary data

2) A call center asking too many questions, questions that are not going to be used for the solution.

 

HOW TO HANDLE THESE WASTES

Overproduction can be handled by balancing the line by techniques like Just in time. the advantage of pull system can be taken

Overprocessing can be managed by understanding the customer perception of value and calibrate the production accordingly. Value stream mapping can help

All participants have quoted relevant and excellent examples of Overproduction and Overprocessing. The answer that stands out from the others is that of Pradeep Kandpal for providing apt methods to deal with the two kinds of waste.