Question

In: Operations Management

What is meant by waste in systems that have adopted clean operations or optimized production? Name...

What is meant by waste in systems that have adopted clean operations or optimized production? Name the seven sources of waste.

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Expert Solution

Waste can be defined as any manufacturing activity that uses resources but does not add customer value. As such waste raises the cost of the goods, the producer either decreases its income or inflates the rates to be charged by the consumer. Typically, since they do not profit consumers are unable to pay for these companies. The management of waste therefore gives companies a great chance to reduce costs and improve productivity. Lean experts typically refer to 7 explicitly when speaking of waste. This includes: movement, inventory, movement, waiting, processing and overproduction and defects.

The recycling of these seven forms of waste will allow businesses to minimize costs , increase employee involvement and customer satisfaction and increase income. Kaizen aims to reduce waste as much as possible through leans management and continuous improvement theory.
By adopting lean management and ongoing development strategies and methods, businesses will reduce the 7 forms of waste. Yet businesses do not necessarily focus on waste management while adopting these ideas and tools.
Alternatively, organizations should use lean and quality management methods to define consumer interest. This increases the productivity of value added processes and reduces waste in the business.

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