Do you know the "Seven Deadly Wastes"?: Lean's Ways to Waste Money (And How to avoid them!)

Collage of Pictures representing different kinds of Waste

When talking about Lean Thinking we continuosly mention "Waste" as something to be avoided or completely eliminated in every single process or activity done, in order to reach our customers' satisfaction.

But first, we need to understand that the word “Waste” refers not only to the things we literally throw into the garbage bin, but also to all those things that make us lose even a portion of any kind of our limited resources! Because, as we said before, Lean Thinking is about creating value for our customers using the least amount of resources possible.  

Remember Lean Principles: Identify and Define Value, Map Value Stream, Create a Smooth Flow, Pull Based on Customer Demand, and Pursuit for Perfection  (for more detailed information refer to our Blog: “Lean Restaurants: Toyota’s way of Cooking & Serving”)

According to Wardon, founder of the Lean Institute, there are 7 types of Waste, also known as “Seven Deadly Wastes”which are the following: Overproduction, Waiting, Transport, Motion, Over processing, Inventory, and Defects.

Below, we will make a brief description of each kind of Waste, a few examples to help you internalize the concepts and some measures you may carry out in order to reduce, avoid or eliminate such Wastes.


  1. Overproduction

This means to make more than necessary. It occurs because it was made before it was truly needed.   This is a particularly serious form of waste because it leads to excess inventory, which usually masks other underlying problems and inefficiencies. What happens if you prepare too much salad or too much banana milkshake? In order to reduce this waste you could:

  • Pull based on customer demand. You have to pace production so the rate of manufacturing matches the rate of customer demand. This is also called the “Takt Time” or the rhythm of work. It is like a dance; in which consumers/diners pick the music and the kitchen are the dancers; it has to adapt to speed, melody, etc. Waltz and rock-n-roll differ very much from each other.

  • You may use a pull system to control how much is cooked. E.g.Kanban (it is a way to visually manage the workflow, to make it easier to stay efficient and to help quickly identify -and solve- problems in the workflow).

  • Reduce serving sizes. If customers continuously leave food on their plates, you can reduce serving sizes, then, you will be: reducing food waste and you could increase profit (either because you reduce your production costs and your margin gets bigger if price stays the same, or because you also reduce price and that brings you more customers and more income). This implies, application of Lean Principle #1; Identify and define value.  


  1. Waiting

These are periods of time when work-in-process is waiting for the next step in production (No value is being added). How much time is actually spent on true value-added manufacturing? Eg: samplers or appetizers; same dish but products with different cooking times in it. This generates spare periods of valuable time and the final result is not the best, because some things get the right temperature to customers, but others might get cold or partially cooked. Among the countermeasures you may carry out are:

  • Design processes so that the flow is continuous and there are minimal (or no) buffers between steps in production (Smooth Flow). In the example of the sampler, if the products in it are different a bottleneck is produced, because they require different cooking times. Therefore, you will need to redesign your appetizer options, and substitute the product that doesn’t help you to have the Smooth kind of flow you need in your operation.

  • Use standardized work instructions, including the best practices to ensure that a consistent method and consistent times are used for each step of production or specific task. E.g: How to Wash Your Hands.


  1. Transport Waste

It refers to unnecessary movement of raw materials, work-in-process or finished goods. Eg: when there is a considerable distance between the storage room or the fridge and the kitchen. How to reduce or prevent?

  • In this regard, the principles of Mapping the Stream Value and Creating a Smooth Flow are the basics. You have to design a linear, sequential flow from raw materials to finished goods and make sure work-in-process is not placed into inventory, avoiding bottlenecks as well.

  • Using the example of the distance between a storage room or fridge and the kitchen… Consider making fewer back and forth between the two, making a list of everything you need to take out, and using a cart or similar.


  1. Motion Waste

This is the kind of waste related to unnecessary movement of people (movement that does not add value). For instance, when people have to move from one place to another in the kitchen or the front of the house to get the tools or elements needed to do their jobs. What could you do?

  • Once again, Mapping the Value Stream is the key. You have to ensure that work areas are logically organized, as well as walking areas too. Consider alternate arrangements of equipment that reduce motion and importance of social distance now in Covid-19 era.

  • Printing the menu on paper placemats or to allow customers to order using their devices, just like many restaurants have already eliminated physical menus and provided customers with a QR code instead, would help you reduce motion of staff moving around to get to Menus and hand them in to customers. Same thing happens to napkins, cutlers, glasses, etc; either you already have them placed on the table or you put them at the reach of the hand of your personnel in the front of the house. Somewhere accessible but that does not interrupt “the flow”. Same thing happens in the kitchen, having things organized according to the stations where they are going to be needed reduces motion, accidents, time, stress, etc.


  1. Over Processing Waste

This type of waste has to do with more processing than is needed to produce what the customer requires. E.g: going three days a week to the market to buy non-perishable goods. In order to eliminate this type of waste you should consider:

  • Pursuit of Perfection or continuous improvement principle application is the cornerstone to reduce overprocessing waste. You should compare customer requirements to manufacturing specifications, and look for potential simplifications to the manufacturing process.  You have to ask yourself, does it make sense to do this over and over again? Does it add value to my customer? Is the time (and other resources) spent on this worth it? WHat can I do differently? better?


  1. Inventory 

It refers to any kind of product quantities (raw materials, work-in-process, or finished goods) that go beyond supporting the immediate need.

  • This kind of waste is reduced or eliminated, once you implement some Lean principles at the same time. When your cooking is pulled based (just-in-time) then, you will reduce Inventory waste because you will bring  raw materials in only as they are needed .

  • Creating Smooth Flow, and using Lean Tools to control the rhythm of work, the amount of production, and time spent, will  reduce or eliminate buffers between steps in production and overproduction as well. Therefore, you won’t waste/spend either by default or by excess.


  1. Defects

Defective waste is all the production that is scrap or requires rework. E.g: Meat that was not cooked enough or on the contrary, that was overcooked -according to customers’ expectations.

  • Why should defects be avoided? Because repairing them involves extra use of resources, which is the exact opposite of the main goal; “creating more value for customers with fewer resources”.(Lean Enterprise Institute)

  • To reduce Defect Waste the designing of processes have to be “Poka- Yoke” (with the goal of achieving zero defects). It means that during process designing, defects have to be prevented and abnormalities have to be detected (to be immediately corrected)  into production processes. 

  • It is important to look for the most frequent defects and determine why they occur. Is there a common cause? Are these defects related? What are the solutions?

  • Create clear and precise instructions to be followed in order to preserve food safety, correct dish assembling, the way for doing inventory, etc.

 

There is another important form of Waste, considered by some the number 8 Type of Waste, which is Unused Human Potential.  It is so important that it is one of the main reasons for which people quit their jobs! And sometimes it is so difficult to handle because it has to do with all kinds of lost opportunities (lost motivation, lost creativity, lost ideas, etc).

Unlike the other “Seven Deadly Wastes”, the responsibility for it relies only on the restaurateurs, managers; the leaders of the teams. 

So, the amount of Unused Human Potential Waste, depends on your policies and management style and the ability to either diminish or encourage employees contributions, regardless of their position or seniority in the organization (big or small).

Therefore, about this matter, the invitation is to keep developing strong coaching skills and help the leaders of your teams to do so as well, and create a culture of strengthening employee listening and contributions that will bring your business substantial benefits!




Sources:

Planet Lean

Lean Enterprise Institute

Lean Production

Vetorsolutions