Guide: Waste Analysis

How to Conduct Waste Analysis

Step 1: Identifying Waste

To reduce the amount of NVA and NNVA activity in your processes, you first need to identify the waste in your process. 

There are a range of Lean Six Sigma methods that can be used to identify waste within a business, such as value stream mapping, Gemba walks, and spaghetti diagrams.

Process Mapping:

Process mapping is a workflow diagram to bring forth a clearer understanding of a process or series of parallel processes. It illustrates the inputs, actions, and outputs of a process in a clear, step-by-step map of the process. This is very helpful in identifying where waste occurs in the process.

Detailed sub process map

Read the full guide on Process Mapping to understand this tool in more detail.

Value Stream Mapping (VSM):

Value Stream Mapping is a visual tool used to illustrate, analyze, and improve the flow of materials and information required to bring a product or service to a consumer. A VSM helps identify bottlenecks, redundancies, and delays in the process. It captures both the material (product) and the information flow.

Value Stream Map (VSM)

Read the full guide on Value Steam Mapping to understand this tool in more detail.

Gemba Walks:

The term “Gemba” means “the real place” in Japanese. In Lean Six Sigma, a Gemba Walk involves going to the place where the work is done. It is an observational walk to see where value is created and to observe the realities of a process, rather than what might be assumed or reported. During the walk, managers and leaders observe, listen, and understand the work process, ask questions, and learn about the work being done.

Read the full guide on Gemba Walks to understand this method in more detail.

Spaghetti Diagrams:

A Spaghetti Diagram is a visual representation showing the physical flow or movement of people and materials within a process. It’s called a “Spaghetti” diagram because the lines crisscrossing back and forth over a layout can resemble a bowl of spaghetti. This tool helps identify unnecessary movements that can cause delays, excess effort, and inefficiency.

Step 2: Measuring Waste

Data Collection:

Data collection involves using check sheets, time studies, and various data-gathering techniques to capture information about the frequency and causes of potential waste in a process. It quantifies the waste and provides a baseline for improvement measures.

The output of the analysis can then be visualised to see how much of the process steps are non-value-add such as in the below image.

Value add analysis example

Step 3: Analyzing Waste

Once you have collected data to measure waste in your processes the next thing to do is to analyze the waste in the process to understand how the process can be improved by using methods such as Root Cause Analysis and Pareto principle analysis.

Root Cause Analysis (RCA):

This is a systematic process for identifying the root causes of problems or events and an approach for responding to them. RCA is based on the basic idea that effective management requires more than merely “putting out fires” for problems that develop, but finding a way to prevent them. Tools such as the 5 Whys and Fishbone (Ishikawa) Diagram are commonly used for RCA.

Read the full guide on Root Cause Analysis to understand this method in more detail.

Pareto Analysis:

A Pareto Analysis, or Pareto Chart, is a statistical technique in decision-making used for the selection of a limited number of tasks that produce significant overall effect. It uses the Pareto Principle (also known as the 80/20 rule) where roughly 80% of the problems are produced by 20% of the causes.

Read the full guide on Pareto Analysis to understand this method in more detail.

Step 4: Eliminating Waste

Now that you understand the waste you have and have analyzed the waste, the next step is to improve the process by either eliminating the waste or reducing the amount of resources it takes in the process.

There are three main Lean Six Sigma methods that can support this:

Kaizen: Kaizen is a Japanese word that means “continuous improvement”. It’s a strategy where employees at all levels of a company work together proactively to achieve regular, incremental improvements to the manufacturing process.

Standard Work: Standard Work is the practice of setting, communicating, following, and improving standards. Establishing standard Work for a process ensures that it is done with the least waste of time and resources and in the same way every time, which is a foundation for continuous improvement.

5S: The 5S methodology is a system for organizing spaces so work can be performed efficiently, effectively, and safely. This system focuses on putting everything where it belongs and keeping the workplace clean, which makes it easier for people to do their jobs without wasting time or risking injury.

Step 5: Controlling and Sustaining

After following one of these methods to make process improvements the final step is to sustain these improvements to ensure that the process does not return back to how it was before with waste returning to the process.

This can be done with a range of control tools such as Control Charts and Visual Management.

Control Charts:

Control charts are a statistical tool used to distinguish between variation in a process resulting from common causes and variation resulting from special causes. It is a tool to monitor, control, and improve process performance over time by studying variation and its source.

Visual Management:

This is a system of managing a workplace or area using visual signals instead of written instructions. The goal is to improve communication and efficiency by using visual information to regulate production.