Quantify Waiting Waste

Quantify Waiting Waste

In the Lean technique, ‘Waiting’ is considered a type of ‘Waste’ that can reduce efficiency. Lean teaches us that “Time Wasted” bears a cost and eventually becomes “Money Lost”, which could have been saved or a portion of it by simply focusing on the leakages of process and its applications. This directly put a cost to the business.

We generally talk about "Waste of Time". But, how often does the organizations calculate the monetary value of "Time/Minutes" being wasted during a process? Or even understand the necessity of identifying them? This is where the "Lean" comes into the show.

Let’s say we have decided to look into this aspect and want to bring some value in that area as well, what shall be the first step to undergo? If we are take a simple example of a courier company with a team of workers trying to settle a large clientele on daily basis with their parcels. Imagine staff of 20 works in 03 shifts of 08 hours each. In order to process and deal the consignments, they need a set of stationary and tools. While, the things are not in order, and not being placed smartly.

To quantify the concept, let’s suppose each staff have to spend around 2 minutes to search for required stationary and tools before initiating the shift, hypothetically, the Loss statistics would be like:

·???????? Per shift = 2 minutes X 20 staff = Combined 40 minutes.

·???????? Per day = 40 X 3 = 120 minutes - 2 hours/day.

·???????? Per Week = 120 minutes/day X 5 Man-days = 600 minutes - 10 hours/week.

·???????? Per Month = 600 minutes X 4 weeks = 2400 minutes - 40 hours/month.

·???????? Per Year = 2400 X 12 = 28,800 minutes - 480 hours wasted/year.

Adding monetary value to this waste would calculate following loss, (if hourly cost is PKR 100).

·???????? Weekly Cost of Time: 10 X 100 = 1000 PKR.

·???????? Monthly Cost of Time: 1000 X 4 = 4000 PKR.

·???????? Yearly Cost of Time: 4000 X 12 = 48000 PKR in wasted Labor cost.

Imagine this is only 2 minutes of Wasted Time which is meagerly accounted for during the course of operations. Visualize the factor in case of incremental inefficiency.

Cure?

There is mitigation cure in Lean methodology that can eliminate this type of waste to almost 99%. It is called Shadow Marking. By implementing in simple cure like Shadow Boards, an organization can optimize the process, organize Tools and Stationary for staff use and eventually protecting baseline from Time Waste.

Shadow Board Marking will harness Clear Visibility, Accountability, Improved Efficiency, and Cost Saving.

Use Shadow Boards

Shadow Board are Signage, Boxes or visual Devices that describes the right place for each of the tool, items or stationary that is an integral part in executing a process. A Shadow Board create a clear visual place for tools and supplies to be put away, eliminating any question and assisting in organization and cleanliness.

If a business?practices Lean Principles, a shadow board is an important tool of implementing on-going improvement practices. Shadow board will help eliminating waste.

Saood Ahmed Khan

Senior Manager @ HBL | CPA - Finalist

1 个月

Agreed

Aftab Saleem

Transformation | Process Re-engineering | Retail & Microfinance Banking

3 个月

I agree

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