There are always many examples of waste in manufacturing and/or distribution processes. There is also no end to process variation, only levels of difficulty recognizing it. Much of the variation in most companies is still pretty obvious. These areas of waste represent the opportunities to fuel continuous improvement throughout the facility. Recognizing them is the obvious first step. Some of these areas include:

1. Unnecessary material movement

2. Unnecessary worker movement

3. Wasted space

4. Wasted time

5. Wasted material

   1. Scrap

   2. Rework

   3. Lost material

   4. Damaged material

   5. Mistakenly ordered material

   6. Unnecessary material ordered or manufactured

6. Wasted effort (poor quality)

   1. Work quality

   2. Material quality

   3. Process design quality

   4. Standards

7. Wasted knowledge or information

8. Wasted creativity

These areas of waste represent the opportunities to generate a list of project needs for your shop. Every plant and distribution facility has them; it is just a matter of pursuing them. It is widely recognized that a great majority of the money spent in managing and running an operation does not go directly to cost-added activities. Too much goes to the list of wasted resources listed above. Often by starting from this list, teams can generate ideas quickly to move the needle on the ratio of value-add versus cost-add activities in the facility.