Rising cost pressure requires continuous productivity increases in production.
To improve productivity through Lean Production it is necessary to identify and avoid waste (Muda).
In process analysis, a distinction is made between waste and added value. Then a distinction is made between avoidable and unavoidable waste. Once started, waste reduction is a process of continuous improvement (Kaizen) at all levels of the company.
As waste we define all the phases of a process that do not directly contribute to creating added value. This type of waste must always be avoided.
We talk about overproduction when more is produced than what the customer orders or what was planned.
This means extra inventory which translates into costs.
If the employee has to travel large distances to take the material or tools, we speak of unnecessary movements. Unnecessary journeys cost valuable production time.
Waiting times are the dead times in which you have to wait for the material or the end of a process. The waiting employee does not contribute to creating added value.
If the material is moved within the production it is called transport. Transport changes the position of the product, but not its value.
Excess of processes
If it is produced with a higher standard than that requested by the customer, it is called excess of processes. In this way, more work is invested than necessary to satisfy the functionality.
High inventories in production and warehouses of raw materials and finished parts cause capital costs. It is true that stocks give a sense of security, but they also make the product more expensive.
If the parties are in a state that deviates from the norm we speak of errors. Errors involve retouching and selection work with a consequent increase in costs.