Waste in an organization

If we talk about waste in an organization whether it is a manufacturing, logistics or service company, we can always observe activities that add value or do not add value from the customer’s perspective. Value-adding activities are those that change the physical or chemical properties of a product and the customer is willing to pay for them. In services, on the other hand, it will be those activities that transform our service and the customer is willing to pay for it.

It is worth noting that there are activities in enterprises that do not add value, but are necessary and we cannot completely abandon them. An example of such activities is precisely unnecessary transportation. However, we should keep in mind that, in line with continuous improvement, we should try to constantly optimize transportation both inside and outside the organization, so that the value of the waste is as small as possible.

What is unnecessary transportation?

Unnecessary transportation is one of the 7 types of waste, as defined in the Lean Management concept. Unnecessary transportation is often an outgrowth of the worst of the wastes – namely overproduction, which we wrote more about here.

As we have already mentioned – transportation in the company is one of those activities that we cannot completely eliminate. On the other hand, we can reduce the transition path at each point of movement of semi-finished products, raw materials or finished goods. In Lean Manufacturing, we focus on lead time, which we measure from the moment the order is placed and received from the customer to the moment the finished order is delivered “into the hands of the customer.” We should shorten the aforementioned lead time by, among other things, reducing unnecessary transportation.

Unnecessary transportation will not only affect, the speed of the manufacturing process, but will also be related to worker safety and product quality. The less transport and handling of goods, the safer. By reducing transportation, we also eliminate the risk of damage to products, due to scuffing or bumping. Less transportation also means less costs.

How to reduce unnecessary transportation in a company?

Let’s test this with an example. In the graphic below, we see a transport path from point A to point B. This is a classic example of ill-considered transportation – which takes more time for the worker. The transport path contains turns, making it difficult to maneuver the transport truck.

With a little thought, we can easily optimize the transport path. Take a look at the graphic below. The new transport path is safer, shorter and reduces the risk of damage to the transported goods. It is possible that with a “straight” transport path, it is also possible to increase the load capacity of the transport truck and carry more goods during one distance. Such a change will undoubtedly have a major impact on the efficiency of the entire process.

Transportation paths are not everything

When analyzing transportation processes, it is important to focus not only on the transportation path, but also on the means of transportation. This is where experts also see tremendous potential for optimization. Many companies overlook the possibility of changing the type of transport trucks to those with a higher payload weight or using AGVs (Automated Guided Vehicles). AGVs repeat their transport cycles along pre-determined and planned routes – this is often a great convenience for internal transport.

Various types of conveyors are also used for optimal transportation. Opting for this solution avoids road transport. Conveyors often move goods in designated “top routes.”

In summary, by properly planning transport routes, choosing transport methods or equipment, we can not only significantly reduce the time it takes to move products, but also improve product quality and ensure the safety of workers.

Transportation activities still occur in the process, but the losses associated with them are undoubtedly reduced.

Other methods of reducing transport in an enterprise

Value Stream Mapping (VSM)

One of the tools used in Lean Management is Value Stream Mapping (VSM method). The result of VSM is a developed map of product and information flow. By taking a holistic view of an organization’s processes, we see losses that go unnoticed in everyday work. VSM helps spot illogical transport links, repetitive activities, poorly designed layout of the production floor, misalignment of machines or production lines, or “empty” travel of long distances.
If you want to optimize transportation in your organization start with value stream mapping. The map you develop will give you many clues to optimize not only transportation, but also other process waste.

One Piece Flow (OPF)

Another tool that eliminates or significantly reduces unnecessary transportation is One Piece Flow. One Piece Flow involves organizing workstations so that a worker or production line is able to transfer piece after piece to the next workstation. This results in shorter transit times, no need to transport large batches by carts, and enables the use of quality built into the process (jidoka).