L1.1 Eight Types of Waste
The well-known Toyota car company identified seven types of waste that had an impact on Productivity and Profit. An eighth has been added more recently. By gradually reducing these wastes, you can improve the Productivity and Profit of your business. In Japanese, this is referred to as reducing "muda" (pronounced Moo-da). This article discusses how these types of waste might show up in your business; and what to do about them. Waste reduction is an ongoing and probably never ending process. This article gives lots of examples of waste in each of the categories. To be most effective, you should tackle the largest waste items first so as to make the largest gains first. Waste reduction is a team effort ideally as those on the front-line probably already know what is wasteful; they are just not empowered and trained to combat waste.
Read this if: you are working on making your business operate more efficiently
Relates to: 80/20 Rule for finding the biggest issues, Kaizen for incremental improvement, Constraints and bottlenecks. Our Profit Acceleration optimization toolkits; Double Profit in 100 Days and Double Growth and Profit in 365 Days.
Audio/visual Materials: none
Degree of Difficulty: Yellow (entry level) . Not hard to do but requires perseverance. It is the first article in a series on managing waste to improve your profit