7 types of losses. Classification of the main types of losses in industrial enterprises

Lean manufacturing is about eliminating waste. What does the word "loss" mean? The article will help you understand the types of losses, show examples in the life around you, and also teach you how to count the money that the company loses because of them. You are offered to help required for download).

Most of the material on this subject presented in books describes in detail the losses in production processes. therefore, we would like to talk about losses, first of all, in office processes, in the processes of providing services - where we encounter them on a daily basis.

First, let's define the wording.Any activity that takes place in the process of making a product or providing a service consumes resources but does not create value for the customer. Those. actions you can do without.

At present, Lean manufacturing distinguishes eight types of losses.

EXPECTATION

The most common type of loss in office activities isexpectation . We all know that if you need to agree on a contract in several departments, then you will have to wait a long time. Employees usually take their time. Each department, having received a document, for starters .... just put it aside ... because no one is going to drop their affairs, which are already in progress and immediately begin to consider a new document. Therefore, the contract will first lie down for a day or two, and then it will be considered. As soon as the case is transferred to the next department, everything repeats ...

Moreover, each of the employees of the department is sincerely sure that he works as efficiently as possible. Indeed, everyone is constantly busy analyzing a document. But no one pays attention to the fact that in our approval process, the contract lies for several days, waits and nothing happens to it ... Imagine, if we remove all expectations, then how quickly we could receive the necessary documents, services ... How far we could overtake competitors!

A visit to any government institution is also not complete without this type of loss. And it doesn't matter if we have a queue with a time stamp or not, we still face a wait. First, we wait in line at the reception to receive a card and coupon, then in front of the doctor's office. Again, it is possible that at this moment all employees are working and very busy, but we, as customers, are forced to wait and lose our time. And, of course, we are not ready to pay our money for this expectation.

From practice: in office processes, losses from waiting reach 60-80% of the time of the entire process. That is, if we conclude a contract for 10 days, then 6 days of them the contract lies on the tables. Do you think the client is willing to pay for it?

And in our daily life, any queue, whether it be to the checkout of a store, to a gas station, or a frozen computer, is all a waste of our time.

Calculation: Let's take a very average salary of an employee of 24 thousand rubles, with an average rate of working hours per month of 160, we get the cost of 1 man-hour of an employee at 150 rubles.

Employees received an invitation to a meeting. , i.e. sorry - delayed 🙂, for half an hour. Everyone is waiting for his arrival.

Direct losses from waiting:

That's the cost of waiting at the door for just one meeting. And how many such meetings per month, year? and perhaps some directors consider it bad form to arrive on time ...

The presence of losses in the process leads not only to monetary losses (the so-called -direct losses), but also to indirect losses— which cannot be valued in rubles, but which affect the company's image, customer loyalty, competitive advantage:

Please note: only 2 hours out of 11 with the document pass real work, and that's all 18% of the total duration. The rest of the time the papers “stupidly” lie and wait. And the client is also waiting ...

How many more customers do you think the company would have if the conclusions always done in 2 hours?

There are two key words in my question: first - ALWAYS - means the same in duration for each performance, and the second - 2 hours is the minimum process execution time in the absence of waiting time losses.

Well, how? Is it possible to implement a process without waiting for the client?

DEFECTS

The following type of losses is quite difficult to observe in the office, but in fact it is very common -defects are the manufacture of a product or the provision of a service with errors that require additional resources to correct them . Defects always entail additional processing, which only increases the cost of production and lengthens the process time. After all, it takes less time to do everything right the first time than to do it wrong first and then redo it.

In production, fixing defects is easier: the master handed over 10 blanks to the machine in the morning, and in the evening received 9 processed and 1 defective, not accepted by the controller. And in the office everything is more hidden from prying eyes: an employee sits, looks at the computer, what does he do there? It can be difficult to understand. When providing services, the client can usually see and notice an error only at the final stage. But how many errors were identified and corrected in the course of execution by the performers themselves - usually this is not even recorded. Employees themselves are not interested in informing management about their "jambs", easier to remake in a quiet way.

From practice: The bank uses the services of an insurance company to arrange insurance for non-real estate when concluding mortgage agreements. Bank employees constantly complain among themselves about the high level of defective documents from the insurance company. The management does not respond to complaints, as there is no documentary evidence. After collecting and recording data on insurance policy revisions for a month, there were found errors in 95% of documents. For a bank (as well as for an insurance company) this is a huge waste of resources: after all, all documents had to be redone, coordinated with clients, and often with the registration chamber, which, of course, affected the time for issuing a loan and the cost of the operation for the bank. Realizing the terrible statistics, the bank's managers set strict conditions for the heads of the insurance company about the need for more than 5% of cases.

And here are examples from life: mistakes when placing price tags on goods in a store (provided that this was not done on purpose), as well as the loss of test results or an outpatient card in a polyclinic.

Calculation:

OVER PROCESSING

The next type of loss isredundant processing - performing operations that are not necessary for the client, which as a result lead to a delay in the entire process , and also, often, additionally bureaucratizes the process.

For example: in large companies, when signing an agreement, in addition to direct executors in the economic, legal and accounting departments, a visa is also required for the head of this department. Everyone understands that this is the case, but traditions require it ... and each additional visa is both the time until the documents are “cured” on the table and the price of the working time of the leader himself.

Or another real experience: every day the office collects documents on customer transactions for the day and puts them in a certain order - this takes 15-20 minutes, i.e. for a month about 8 hours or a whole working day. Finished documents are sent to the accounting department. Imagine our surprise when we found out that the accounting department, having received beautifully folded pieces of paper, pours everything on the table into one big pile and sorts it according to a completely different principle!

Another example: this is the duplication of information, contracts in electronic and
paper form, and sometimes also in scanned form - just in case. We spend and we pay for the time of employees for actions that are not needed by the client and which only complicate our processes.

Calculation: The price of a formal signature: on the prepared contract for the provision of bank services, the executor signed first, then formally - the head of the office.

In order to radically increase the added value of the consumer, it is necessary to reduce seven types of losses (muda, Jap. -i‘K):

1. Overproduction of goods, when the demand for them has not yet arisen.

2. Waiting for the next production stage.

3. Unnecessary transportation of materials.

4. Extra processing steps required due to lack of equipment or imperfection of the project.

5. Availability of any, except for the minimum required, stocks.

6. Unnecessary movement of people during work (in search of parts, tools, etc.).

7. Manufacturing defects.

The relationship between such losses is clearly shown in Figure 1.

Figure 1 - Seven types of losses

By eliminating mud, quality is improved, production time is reduced, and costs are reduced.

To solve the problem of eliminating muda, kaizen (‰b‘P) is used in lean manufacturing - continuous, continuous improvement of activities in order to increase value and reduce muda; pulling products using the tag-kanban method (ЉE”B) - informing the previous production stage that work needs to be started (for example, a small card that is attached to a box with parts); poka-yoke error prevention (ѓ|ѓJѓ€ѓP) - "foolproofness" - a special device or method due to which defects simply do not form.

Identifying and eliminating waste hidden in production processes begins with performance appraisal, which serves as a mechanism for tracking progress in the adoption of lean manufacturing.

Travel losses. This is the loss of working time associated with useless, from the point of view of product production, personnel movements. The elimination of this type of loss is achieved through rational planning and organization of the workplace, the optimal location of controls, tools and devices in the work area, in order to eliminate the time to search for the desired element, to speed up the process of its transition from the state of waiting to the state of use. An example of such losses is, for example, unsystematic storage of inventory at the workplace. Such losses can be easily eliminated, for example, by installing a small rack for storing tools directly at the workplace, in the visibility and reach of the employee, while the rack must be equipped with cells with clearly distinguishable designations (inscriptions or symbols) of the corresponding inventory.

Losses from transportation. This type of waste is associated with the chaotic movement of materials, semi-finished products and production information, when these movements do not add value to the product of production. Everyone is familiar with the situation when, during the manufacturing process, the product makes a lot of counter and cross movements, often accounting for more than 50% of the total manufacturing time. The solution lies in a critical rethinking of route technology and equipment layouts.

Losses from over-processing. These are losses associated with the fact that the product, during the creation process, is subjected to excessive processing, which is not required to give it the properties required by the customer. Such redistributions, when they are detected, should be immediately excluded from the technological process.

Downtime losses. Addressing them requires leveling the planned workload and synchronizing operations. It is eliminated by transferring production from work in batches to the principle of "flow into one part", i.e. implementation of Lean principles. Examples are Toyota automobiles (large series) and Pratt & Whitney aircraft engines (small series).

Losses from overproduction. Losses from overproduction are due to the very nature of mass “batch” production, when an enterprise is forced to produce stocks for which there is currently no specific consumer. This leads to the immobilization of working capital, their withdrawal from circulation, which increases the current financial needs of the enterprise and negatively affects the turnover of working capital and significantly reduces the ability to maneuver finances. There is only one cure here - do not produce more than the consumer requires, when planning production, rely not on sales forecasts made no less than a month ago, but on the real needs of the market.

Marriage loss. Marriage entails either an increase in the waste of raw materials and materials, or additional processing in order to eliminate defects. In any case, we have losses. The method of dealing with these types of losses according to Lean is protection against defects, the use of standard operating cards, measures for the continuous improvement and improvement of manufacturing processes.

Losses from excess inventory. In essence, they are similar to losses from overproduction. Pull production, built on the principle of "flow in one part", operates based not on a sales forecast, but on real effective demand. This allows you to accurately plan the optimal size of stocks, which significantly reduces the size of working capital immobilized in them.

Aliulova Liliya Rafagatovna, Competitor, Department of Economics and Enterprise Management, Kazan National Research Technical University named after V.I. A.N. Tupolev, Russia

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Annotation:

The article discusses the causes of seven types of losses in production, analyzes the possible consequences, which makes it possible not only to avoid losses, but also to control the further development of the situation with limited resources, thereby optimizing management.

JEL classification:

Identification and reduction of losses is a priority for any modern enterprise, as it is the basis of successful activity.

Taiichi Ohno (1912‒1990), the executive director of Toyota, first introduced the concept of seven types of waste. Being the most ardent loss fighter, he established seven types of muda. "Muda" is one of the Japanese words, meaning wastage, waste, that is, any activity that consumes resources but does not create value. These are mistakes that need to be corrected. These are redundant steps that you can do without.

The literature deals primarily with the assessment of loss and the method of elimination, which is certainly important, but does not give an answer to what causes and consequences accompany the seven types of losses.

The goal of lean manufacturing is to prevent waste. It is necessary not only to eliminate, but also to prevent further occurrence and / or development of losses.

The task of management is to optimize the process. Considering the consequences of losses, management with limited resources can decide where to focus efforts in the first place.

Overproduction - the most dangerous of losses, as it entails other types of losses. But in order to eliminate and identify this type of waste, it is enough to follow the motto: “Do not produce too much!”. It is necessary to produce only what is ordered.

The reasons for overproduction may be large batches, which in turn may be a consequence of the impossibility of a quick changeover. Pre-emptive production can also cause overproduction. Excessive equipment, unstable quality are also causes of overproduction.

The consequences arising from overproduction are the premature consumption of raw materials, and as a result, the purchase of materials, which leads to excess stocks and loss of quality.

The amount of unclaimed products and blanks in warehouses and intermediate operations is the cost of the "Overproduction" loss. Determined within a month, quarter, year.

The pull supply system helps to avoid overproduction, as well as leveling the load of production lines.

Cause excess inventory is a long readjustment, which in turn is associated with the release of products in large batches. As well as the imperfection of the system for planning production and supply of materials.

For warehousing stocks, we need additional space, warehouses, additional labor. Also, these reserves will need to be subsequently sought, which means again spending time and effort. All these efforts are additional costs, plus the reserves themselves are the frozen capital of the enterprise.

As in the case of overproduction, improving the planning system helps to reduce inventory. Production flows should be based on a pull system with as small batches as possible, which is facilitated by the leveling of production.

The next type of loss is transportation, is a consequence of the irrational placement of equipment, a large distance between production sites. The inefficiency of the organization of the production flow helps to identify the map of the value stream. Displaying material flows and their direction, we see the distance that a workpiece or material overcomes before it becomes a finished product. An increase in transportation costs leads to an increase in the cost of products.

Optimizing the layout of equipment, storage space and the direction of material flow in general helps to reduce the number of shipments.

A loss "Moving" associated with the movement of workers during the work shift. This contributes to a decrease in labor productivity, an increase in staff fatigue and an increase in injuries. The Spaghetti Diagram helps to reveal this hidden loss. But it is also important to understand the personal role of the employee himself in optimizing his working day and his actions. To eliminate unnecessary movements of the employee, first of all, it is necessary to improve his qualifications. Together with him, to optimize the production process and effectively organize jobs. The personal involvement of the staff can be increased by implementing the Kaizen movement - small improvements in-house.

Of all types of losses, the least damage comes from loss. "Expectation". This is the time that equipment or personnel spends inactive, that is, without creating value. When optimizing production flows, it is necessary, if not to exclude all other losses, then at least to strive to convert them into waiting. The timing of the work of personnel and equipment allows you to determine the waiting time. The total number of downtimes per shift, month and year will give us the waiting time. To reduce waiting time during downtime, it is recommended to send personnel to cleaning, the implementation of 5S, TPM, SMED, Kaizen systems.

Optimizing the layout of equipment, reducing changeover times can reduce waiting times.

Also, excessive processing can affect the increase in costs in the manufacture of products. It arises due to the lack of a standard for the worker, the imperfection of technology. Before fulfilling an order, you need to clearly understand what properties of the product are important to the consumer. This understanding should be reflected in the standard for the worker. For example, in a standard operating chart, where all the steps and actions of the operator will be clearly spelled out.

Defects in manufacturing entail additional costs for revision, control, and organization of a place to eliminate defects. They arise as a result of a violation of technology, low qualification of an employee, inappropriate tool, equipment, material. The cost of defects is determined by the cost of defective products and the cost of rework. The implementation of quality loops and TPM systems help to reduce waste. Also important here is the personal interest of employees to produce quality products.

For the analysis of losses in production, it will be useful to consider table, which will simultaneously present the causes and consequences of all types of losses, as well as ways to identify and calculate them. The importance of this table lies in the fact that it helps to determine the priorities of management actions in the fight against hidden production losses. Having a list of problems, it is important for management to correctly understand the direction and sequence of actions. Only by building a clear program can a sustainable result be achieved.

Table 1

Causes and consequences of 7 types of production losses

Lean Manufacturing, also known as Lean Manufacturing, or LEAN, is one of the best solutions for organizations looking to increase productivity and keep costs as low as possible. The concept of Lean Manufacturing allows the company to operate effectively even in the face of serious competition.

Waste in Lean production interferes with the achievement of the main goals of the Lean system. As well as the implementation of the main principles of the concept. Knowing the types of losses, understanding their sources and ways to eliminate them allows manufacturers to bring the production organization system closer to ideal conditions. Or almost perfect.

Basic principles of lean manufacturing

The Lean concept adheres to certain principles, the implementation of which ensures the improvement of the quality of the final product and the reduction of losses. The principles of lean manufacturing include:

1. Determination of the final value of the finished product.
2. Understanding flows that create value.
3. Ensuring Permanence
4. Pulling the product by the consumer.
5. Continuous improvement.

Lean Tools and Techniques

The methods and tools of the Lean Management concept are presented in the table.

Types of production losses

Losses in any enterprise, both manufacturing products and providing services, are an integral part of the workflow and require minimization or complete elimination. Types of waste in lean manufacturing include:

• losses from overproduction of products;
• losses due to excess inventory;
• losses during the transportation of raw materials, semi-finished products and final products;
• losses due to unnecessary movements and manipulations of employees;
• losses due to waiting and downtime;
• losses due to defective products;
• losses from excessive processing;
• losses due to the unrealized creative potential of employees.

Overproduction

One of the most important types of waste in lean manufacturing is the overproduction of products and services. It refers to the manufacture of such a quantity of products or the provision of such a number of services that exceed the requirements of the customer. It is overproduction that provokes the appearance of other types of losses: waiting, transportation, excess stocks, etc.

Losses of overproduction at enterprises manufacturing any types of products can be represented by the accumulation of products of work in progress, as well as the manufacture of units that are not required by the customer.

Overproduction in office work can be represented by the following examples:

• preparation of documents, reports, presentations and their copies that do not affect the company's activities and are superfluous in the workflow;
• processing of unnecessary information that does not play an important role in the work of the company.

To reduce the loss of overproduction in an enterprise (in an organization), it is advisable to manufacture products (provide services) in small batches that meet the demand of the customer (client), or to produce the number of units of products in accordance with a specific order. Also, the introduction and operation of the quick changeover system - SMED will contribute to the elimination of losses.

excess inventory

Excess production inventories include:

• raw materials purchased but not required in production;
• work in progress, intermediate units;
• an excess of finished products that exceeds the demand of the consumer and the amount of products required by the customer.

Excess inventory is considered one of the most frustrating types of waste. Excess raw materials and finished products require storage. Also entail the appearance of other production losses of capacity, additional funds are used to move raw materials and semi-finished products in the production process.

As a way to improve and get rid of the loss of excess stocks, it is proposed to supply materials, semi-finished products and units of finished products in certain sizes exactly when the production process requires it - the use of the Just-In-Time system.

Transportation

The system of transportation of materials and products in the production process, if not properly organized, can lead to many negative consequences. They are associated with excessive consumption of transportation capacity, fuel and electricity, the losses are complemented by the irrational use of working time and the possibility of damage to products in the warehouse.

However, provided that there is no negative impact on the quality of the elements of the production process, losses due to transportation are taken into account last.

Measures to deal with transportation losses include redevelopment, following rational trajectories, and optimizing the manufacturing process.

Movements

Losses on unnecessary movements are directly related to the actions of workers employed in production. The actions of employees that do not benefit the work process, according to the principles of lean manufacturing, must be minimized.

Losses due to unnecessary movements occur both in production and in office work. Examples of such irrational movements can be:

• long search for documents or data due to their irrational location;
• freeing the workplace from unnecessary documents, folders, stationery;
• irrational location of office equipment in the perimeter of the office, which forces employees to make unnecessary movements.

Measures aimed at improving the production process and minimizing movement losses should include improving the regulations for the implementation of a particular type of activity, training employees in rational work methods, adjusting labor discipline, as well as optimizing the production process or the provision of services.

Expectation

During the production process, waiting means idle production facilities and wasted time by workers. Waiting can be caused by many factors, including insufficient raw materials, equipment malfunctions, process imperfections, etc.

In production, equipment may be idle waiting for adjustment or repair, as well as waiting for components and elements necessary for workers to continue working.

Employees of the company employed in office premises may experience waiting costs due to colleagues being late for important events and meetings, untimely provision of data, malfunctions in office equipment.

In order to reduce waiting times and their impact on the operation of the enterprise or organization, it is advised to apply a flexible scheduling system and stop the production process in the absence of orders.

Overprocessing

Losses from excessive processing of products among all types of losses are the most difficult to determine. Over-processing refers to operations in a process that consume a significant amount of resources without increasing the value of the final product. Over-processing causes waste of time and capacity, as well as waste of electricity when it is consumed in excess.

Losses from excessive processing are found both in enterprises that manufacture products, and in organizations and their parts that are not engaged in production activities. In manufacturing, examples of over-processing of products can be a large number of product checks and the presence of elements of finished products that could be dispensed with (for example, several packaging layers).

In an office environment, over-processing can be expressed as:

• duplication of data in similar documents;
• a large number of approvals of one document;
• numerous checks, reconciliations and inspections.

Over-processing may result from compliance with industry standards. In this case, minimizing losses is an extremely difficult task. If this type of waste is caused by a misunderstanding of the requirements of the customer for the product, it is quite possible to reduce the impact of excessive processing on the final results of the activity. Options such as outsourcing and purchasing raw materials that do not need to be processed can be considered as ways to improve the situation.

Defects

Losses to eliminate defects are often typical for organizations that strive for the mandatory implementation of the production plan. Refinement of products that do not meet the requirements of the customer due to marriage, entails the expenditure of more time and resources. Economic losses are a serious consequence.

Measures to eliminate defects in production can be the optimization of the production process, the elimination of the possibility of defects and the implementation of measures that motivate employees to work without errors.

Unrealized potential of employees

Jeffrey Liker came up with the idea of ​​accounting for another type of waste, presented in the book The Toyota Way. Loss of creativity implies inattention on the part of the company to the ideas and suggestions of employees to improve the work.

Examples of loss of human potential include:

• performance by an employee with high qualifications that does not correspond to his abilities and skills;
• negative attitude towards initiative employees in the organization;
• imperfection or lack of a system through which employees can express their ideas or make suggestions.

In the Resources section, the presentation “The ABC of Lean Manufacturing. What is loss. The presentation gives a definition of what losses are, what types of losses exist, definitions of 7 classical and one additional type of losses. The Resources section is available to registered users.

Below, in the text of the note is the accompanying text.

In addition, this presentation in video format with my comments is posted on Youtube.com and Rutube.ru.

I ask you to give your comments and suggestions on the youtube and rutube websites, directly on the video page, or through the form on my website, so that I can take them into account in the future.

Transcript of accompanying text

Let's define it as usual. Waste is any activity that consumes resources but does not create value for the customer.

Losses are different from costs or expenses. Waste in lean manufacturing is not the same as what is called waste in inventory systems.

Losses are actions or situations that lead to the use of resources, but do not increase the market value of a product or service, only its cost increases.

Let's compare with Wikipedia's definitions of cost, expense, and loss.

Costs - the amount of resources in cash used in the course of economic activity.

Production costs are the costs associated with the production and circulation of goods produced.

A loss in economic practice is a loss in monetary form, a decrease in material and monetary resources as a result of an excess of expenses over income.

Thus, losses are actions that consume resources irrationally, and costs or costs are the value of these consumed resources in monetary terms.

The founder of the Toyota Production System, Taiichi Ohno, identified seven types of waste. These are defects, inventory, people movements, material movements, waiting times, over-processing and overproduction.

Let's define all these eight types of losses.

1. Defects. This is the production of low-quality products, the presence of marriage, incorrect information, alteration of products at the production stage, inspection of marriage.

2. Stocks. These are any materials in the work area other than those immediately needed for the next operation or process.

3. Movement of people. This is any movement of people that does not add value to a product or service, such as searching for parts, tools, lifting and lowering heavy objects where the process can be organized differently.

4. Movement of materials. This is the movement of materials from one part of the company to another, for example, from production to a warehouse, and then back to production, transfer from one building to another, the use of cranes, loaders. special modes of transport.

5. Waiting. These are downtime due to a lack of materials, information, machines, or when sanctions are not received to perform certain actions.

6. Over-processing. These are operations that create excessive quality, operations that correct previously created defects, or operations that are complicated due to a mismatch of parts or tools.

7. Overproduction. This is the production of such a quantity of products or services that exceeds the needs of the next process, internal or external consumer.

8. Unused human potential. These are situations where an experienced worker performs operations that do not require high qualifications. Or is it a refusal to use the personal qualities, knowledge or skills of employees that lie outside the scope of traditional "job duties". For example, ingenuity, ingenuity, skills and knowledge from other fields of activity, industries.

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