Answer to Question #298419 in Management for Xa-baby

Question

In relationship to a company you are familiar with explain how you can reduce non-value added activities so that you can increase OEE.

Answer 1

How To Reduce Non-Value Added Activities to Increase OEE

Regardless of industry, the cornerstone of this philosophy is labeling all activities across all business divisions, as being either value-added or non-value-added through the eyes of the customer. Lean processes and thinking can help you eliminate the non-value activities making your organization more profitable and more productive.

Lean manufacturing classifies non-value-added activities as waste and groups them into 7 categories, or sources, of waste.

 

Types of waste:

1. Transport: Moving materials is considered a waste because it does not add value to a product.
2. Inventory: Raw materials, supplies, and products are considered a cost to the company until they are sold. Excess inventory is a waste.
3. Motion: Any non-essential motion or movements done by man or machine are waste. Eliminate unnecessary travel, machine movements by looking for ways to have materials close at hand.
4. Waiting: Waiting for deliverables or lag time between tasks is a waste.
5. Over-Processing: When you use the wrong tool for a job, such as oversized equipment, it is waste. Performing any tasks not required by the customer is a waste of time and materials.
6. Overproduction: Making too large of a batch, making the batch too early or poor inventory control can lead to excess inventory and waste.
7. Defects: Quality errors are costly and mean repeating processes, creating new products, and the waste of time and materials.

 

Reference 

https://online.kettering.edu/news/2016/09/07/why-you-should-eliminate-non-value-added-activities-through-lean-manufacturing