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My Introspective

by Laurus Nobilis
My BrainCast

Supply Chain

Value/Waste in Logistics (I)

Logistic_Waste

Lean Concept gives the opportunity to the company to increase the service level, while reducing the cost. This is possible through strict implementation of lean tools

 

Posted: Aug 2012


Waste is any human activity which absorbs resources but creates no VALUE. It may be logical that nobody should consciously do something that creates no result, but such situation is happening everywhere.

This could be caused by different reason. Sometimes the waste appear because lack of management of the process. Also, it can appear in case that one process becomes obsolete and inefficient because of lack of change management.

Value can easily turn to waste in case of lack of management. Therefore, value and waste need to be clearly defined and distinguished.

            Value = Those activities, what customer must be willing to pay for

            Waste = as any activity that consumes resource but adds no value as specified by the customer

            Value enabling = Processes that don’t add value but must be done in the short term to accomplish value-added work in the current system.

The ratio between value, waste and value enabling activities in processes is varying, but in case of lack of lean management it can easily turn to this.

            Activity split:

Walue and Waste in Logistics

 

Every branch of the business can define the wastes that they produce. Typical wastes within the logistic processes are:

Loss of intellect - Not fully utilizing the talent of all employees

Over Service - Loading, picking, handling too much, too fast or too nice..etc

Handling (by forklifts/trucks) - Movements between processes

Excessive Inventory - Everything that is in excess of the minimum required to perform the tasks

Waiting time / Unbalanced processes - Waiting for pallets/cases/ docs, until someone else has completes his cycle

Over processing - More steps in the processes than required

Rework - Repairing bad quality or mistakes

Excessive Motion - Every motion that is not adding value

Danger, hurts

 

Logistic Waste Definition

 

 

Read More on Lean Logistics:

Lean Principles in Logistics
Value/Waste Management in Logistics
Logistic Value Streams
Value Creating Step Flows
Pull Logistics
Perfection in Logistics

 

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