"Lean" was a helpful descriptor. It implied more than just low inventories and delivery as needed. But the financially minded may still see Lean merely as a cost-cutting measure and the elimination of superficial waste. They also may see it as a manager-led project, complete with end dates. Truth be told, there really aren't any end dates in Lean. It is not a project, but a process, as many companies are starting to realize.

Just-In-Time or kaizen originated to maximize the contributions of people to process improvement, and to sustain those contributions after the system was in place. Changing situations requires re-thinking all of the time. This month's problems are not last month's problems.

Bear in mind that these terms originated when Toyota was struggling for financial survival. Overproduction was a sin. Quality was defined as anything that added to customer satisfaction. Waste was anything that did not. From there it was easy to define waste as any activity that a customer would not pay for if they knew about it. For maximum efficiency, every action should add value for the customer. Anything else should be eliminated.

But that really isn't what it's all about. There are a lot of processes that go on that the customer isn't aware that they're paying for. Be it the health care or the automotive sectors, there are non-value-added steps that are also essential steps. It's about improving on the waste where you find it. Taiichi Ohno said that eliminating waste is not the problem; identifying it is.

So how do we identify waste?

Below are the three factors to help you identify whether or not something adds value, and eight wastes to look out for.

It adds value if...
• The customer is willing to pay for it (i.e., the worth placed upon something);
• The activity transforms the product or service in some way; and
• The activity is done correctly the first time.

Eight wastes include:
• Defects: Also known as correction, repair, rejects, etc. This includes resources and time wasted to find and fix defects because the process fails to meet expectations and was not done right the first time; and any processing that does not transform the product or service.
• Overproduction: Producing more than the customer requires and causing other wastes like inventory, manpower and conveyance to deal with excess product and consumption.
• Waiting: Waiting in all forms is waste.
• Non-utilized staff creativity: Not using people's mental, creative, physical skills and abilities. Using the wrong level of staff for certain tasks.
• Transportation: Also known as conveyance. The movement of product, materials and resources between operations. The more you move, the more opportunity there is for damage or injury.
• Inventories: Inventory anywhere is non-value-added, though needed. It ties up financial resources and risks damage, expiry, spoilage and quality. It takes up floor space and resources to manage and track.
• Movement: Any movement of people's bodies that does not add value to the process (e.g., walking, bending, twisting and reaching). This includes any adjustments or alignments made before the product or service can be transformed.
• Excessive processing: Activities that add no value to the end user. Causes of excessive processing are unnecessary paperwork, unclear work instructions, redundant approvals/inspections or over processing to accommodate perceived customer needs.

To help you remember these, you may notice that if you take the first letter of each waste, you get the word "downtime."

You may identify many wastes, so you'll need to prioritize which ones you'll address first. Begin with those, but put the others in a parking lot. Put the parking lot items on your Lean board and come back to them later.


Dr. Timothy Hill is an Industrial and Organizational Psychologist and Certified Lean Six Sigma Black Belt with global expertise in Human Resources/Human Capital. He can be reached at
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