Posted in Operations and Supply Chain Terms, Total Reads: 174
Definition: Shingo’s Seven Wastes
Shingo’s Seven Wastes are those problems/issues which must be avoided for achieving maximum efficiency in production. There are seven wastes that have been identified by Shigeo Shingo, an engineer at Toyota who is also an expert in Just in time techniques.
These are all wastes identified with respect to production and if these wastes are prevented during the process of production, it is called lean manufacturing. The Seven wastes are:
• Waste of overproduction – This waste signifies that an organization should produce only what is absolutely required. Overproducing just creates unnecessary inventory which increases the carrying cost also.
• Waste of waiting – This waste signifies the loss in production which is created due to the unavailability of raw materials as the materials were not procured in time. All times should be adhered to and production should be planned accordingly.
• Waste of transportation – The goods when in transit are of no use and the longer it takes to receive materials or send out produced goods the more time is spent without gaining money. The transportation process should hence be optimized and the shortest route should be identified and treaded into.
• Waste of processing – There might be many processes which are done as they were designed initially but with passing time, companies should continuously keep evaluating if every process Is required or not. All redundant processes should be done away with.
• Waste of stocks – Too much inventory is of no use as the cost of carrying inventory increases. Stocks should only be maintained so as to meet sudden demands and optimization of inventory should also be carried out.
• Waste of motion – All existing processes should first be improved before actually automating it because technology can be implemented to save time but the real benefits are realized only when the process is improved and is working in its full capacity.
• Waste of making defective products – This states that the company should accept no defects whatsoever and try to not produce any defect only in the first place as money is spent on producing the item but it cannot be sold also due to its defect, so it is a total waste.
For example: Shingo’s seven wastes are an industry standard now and all companies implement this to reduce any form of waste.