Amid our hectic daily routines, it’s easy to become consumed by the whirlwind of activity around us. But we must pause and take stock of any hidden inefficiencies that may be holding us back. This way, we can avoid being overwhelmed and instead channel our energy into being truly productive.
Original article posted on Forbes
Inefficiencies and unnecessary expenses can easily be overlooked, especially when companies are growing, receiving investments, and hiring new employees. However, during times of crisis, layoffs and restructuring, reducing hidden waste can prevent taking severe measures. Unfortunately, waste in our work can become so familiar that we fail to see it for what it is.
To improve efficiency and ensure your company’s survival, anyone can look for ways to improve what they do every day. The 8 lean wastes, derived from the Toyota Production System, can help you achieve these objectives. The first step towards cutting company costs is to uncover hidden waste. Defects, overproduction, unnecessary transportation, excessive inventory, waiting, non-value-added processing, motion waste, and underutilized employee skills are all examples of waste.
1. Defects: Making defective products that have to be reworked or repaired means wasted material and wasted time and human energy, generating customer complaints, returns and reworks. No matter what product or service you are producing, a percentage of time goes to waste: codes are not used, articles are written, not published, and marketing campaigns not approved that need rework. How can you prevent it?
2. Overproduction: Producing more than needed or producing too early. Overproduction ties up resources and increases costs. Instead, focus on demand-driven production. Demand changes too quickly in this VUCA economy. Planning in weekly or bi-weekly sprints helps to focus on what is needed in the short term instead of creating too much inventory that may not be sold. Time-box your daily activities every morning.
3. Transportation: Unnecessary movement or transportation, people, goods or information can lead to waste and increased costs. Optimize transportation routes and processes to minimize distance and time spent. Leverage technology solutions such as digital communication and collaboration tools to reduce the need for face-to-face encounters.
4. Inventory: Excess inventory ties up capital and increases storage costs. Implement inventory management techniques such as Kanban systems, where inventory is replenished based on actual demand. Anything getting dusty or pushed into corners is probably excess inventory that will soon be obsolete or spoiled, and you are spending money to store it. The same applies to apps, documents, and work in progress. How can you reduce unused stock? How can you resale, reuse or recycle?
5. Waiting: Idle time before the next processing step. Examples of this waste are waiting for a meeting to start or for a prior step to be completed in a process. It can be caused by a lack of raw materials or by an unbalanced workload among employees and shifts. Review your meetings to ensure they are really productive. When working in teams, make sure the workload is visible to others so that it is obvious when someone is over or underperforming, and have a backlog where people can self-assign tasks to do.
6. Overprocessing: Performing activities that add no value to the product or service or add complexity is a common way to waste time. How much time are you spending by constantly checking your email or Slack? Is that extra feature you are working on a value the customer will recognize? Will that additional preparation for that presentation give you the promotion you expect? Clarify expectations before gettings hands-on and focus on what makes a difference.
7. Motion waste: Excessive or unnecessary movement by employees can lead to wasted time and energy. Implement process improvements, reconfigure office layouts to reduce motion across departments or automate processes. Review meetings and training attendees to ensure only the required people are invited.
8. Employee underutilized skills: last but not least, failing to utilize the skills and potential of employees is a waste of talent and can hinder engagement. Provide opportunities for skill development and cross-training to enhance employees’ capabilities. Foster a culture of empowerment and involvement, encouraging employees to contribute their ideas and expertise.
Remember, being busy is not the same as being productive. With these eight common hidden wastes in mind and practical strategies for addressing them, we can work smarter and achieve more. Let’s seize the day and make the most of every opportunity! Get a coaching session to review your time-management strategy.
