Waste Analysis Example

Waste Analysis Example

Problem Statement

Select a process and create the waste analysis for each step in the process.




How to perform Analysis

Step 1: Open Sigma Magic
  1. Click on the Sigma Magic button on the Excel toolbar.
  2. Click on the New button to create a new project.
Step 2: Add the analysis template
  1. Click on the Tool Wizard to add the analysis template.
  2. Click on Lean and then Waste Analysis.


Step 3:  ​Specify analysis options
A new worksheet will be added to your workbook. Analysis Setup will be automatically opened, in the setup tab specify the following details.



Step 4: Enter the worksheet data
Click on the Analyze button to save all changes and compute the outputs for this analysis. Review the results of your analysis by entering the details and make changes to your inputs if required to update analysis results. A sample screenshot of the worksheet is shown below.




If you need to make changes to the charts, click on the Analysis Setup and then the Charts tab. You can specify the following details,

 Labels:

  • Add a title for the chart.
  • Label the X-axis and Y-axis appropriately.

Appearance:

  • Adjust colors, font sizes, or other visual elements as needed.
  • Enable/disable gridlines or background shading.


Click on Verify tab to ensure all the inputs are okay and shown in a green checkmark.



Step 5: Generate analysis results
FInally, Click Create and then Compute Outputs to see the overall result.




Interpreting Results

Value-Added (VA) vs Non-Value-Added (NVA) Time:
  1. VA Time: 64% of the total process time is value-adding, indicating a decent efficiency level.
  2. NVA Time: 10 units are spent on non-value-adding activities, which need optimization.
Breakdown of Wastes:
  1. Overproduction: Occurs in "Cook Order" with a score of 3, indicating excessive preparation beyond immediate demand.
  2. Waiting: Present in multiple steps, such as "Place Order" and "Cook Order," with a significant score in "Cook Order" (3).
  3. Motion: The highest waste contributor (e.g., "Place Order" with a score of 7), suggesting inefficiencies in physical movements or unnecessary steps.
  4. Transportation: Present in "Deliver Order to Customer" (4), indicating potential delays or inefficiencies in delivery logistics.
  5. Rework: Small amounts are observed in "Cook Order" and "Fix Issues."
  6. Skills (Wasted): Minimal waste here, implying employee skills are utilized effectively.
Waste Categories:
The pie chart visually represents the waste distribution:
  1. Transportation (T): 17% of waste, a major contributor.
  2. Motion (M): A significant category, highlighting inefficiency.
  3. Overproduction (O) and Rework (R): Smaller proportions but present.
Efficiency:
With an efficiency of 64.3%, there is scope for improvement, especially in addressing high NVA contributors like motion and transportation.



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