The original seven wastes are:
•Overproduction (production ahead of demand) – making things ahead of when the customer actually wants them. We do this because our processes are not reliable, or we like to manufacture or do task in big batches (traditionally accountants tell us this is the most efficient way)
•Transportation – moving parts, materials or work in progress around a factory or paper around an office
•Waiting – for parts or information so you can perform at task
•Inventory (all materials, work-in-progress and finished product) – Items produced which can’t be used or sold straight away go into inventory tying up money, space and causing multiple management issues
•Motion -people or equipment moving or walking more than is required to perform the processing
•Over Processing – making more than is needed or doing more work than is needed because you can’t guarantee what the outcome will be ie I need 20 but I will make 25 just in case something goes wrong
•Defects / Rework - the effort involved in inspecting for and fixing defects, reworking items or having to scrap them
There has now been identified an 8th Waste
•Human talent – the waste of people’s talent – training, enthusiasms and brain power.
By identifying waste and non value added activities in our processes we can then start to use the lean tools to eliminate them. Typical Lean tools include – 5S, visual management, TPM, SMED, Pokie Yokie, Standardised work, pull systems, takt time, single piece flow, Kanban, cellular manufacturing, design for manufacture, kaizen etc

Lean thinking and the tools associated with it have been used for decades all over the world by every type of business. There is a standard approach to implementation of lean thinking.
•Step 1: Specify Value
Define value from the perspective of the final customer. What does your customer actually want, what will they pay for and when do they want it.
•Step 2: Map
Identify the value stream, all the actions required to bring a specific product through the physical flow of the company. This includes all the information flow and management flow steps to make things happen. Create a map of how it is today and how you want it to look like. Identify and categorise waste in the current state, and eliminate it!
•Step 3: Flow
Make the remaining steps in the value stream flow. Eliminate functional barriers and develop a product-focussed organization that dramatically improves lead-time.
•Step 4: Pull
Let the customer pull products as needed, eliminating the need for a sales forecast.
•Step 5: Perfection
There is no end to the process of reducing effort, time, space, cost, and mistakes. Return to the first step and begin the next lean transformation, offering a product which is ever more nearly what the customer wants.

If you have a top management team who understand the concepts and a workforce who embrace the culture then Lean will transform your business.

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