Part 7 in our TIMWOODS series
Reducing Over-Processing is a critical part of creating an efficient lean production/distribution company. As our friend Tim Woods has been guiding us through our lumber yards, manufacturing operations, and offices, we’ve seen a lot of wastes. Now it’s time to address the second Big O – a very big source of waste which can be a significant drain on our businesses.
Over-Processing
Overproduction is making products in too great a quantity or before actually needed, leading to excessive inventory (WIP/Work In Process). Likewise, over-processing is doing too much and taking too many steps. Although they are separate ideas, both can be thought of as two halves of the problem of “too much.” They are contrary to basic principles in Lean manufacturing which require that you make what the customer wants when they want it, pulling only what is ordered through your work flow. In addition, these wastes can obscure other problems within your processes.
Costs of the Waste of Over-Processing
What are some of the costs? If you avoid addressing over-processing, it can:
- Cause you to tie up your capital in stock, raw materials, WIP, and finished goods.
- Require additional space on the production floor or in the lumber yard.
- Necessitate people and equipment to move it around as well as containers for storage.
Causes of the Waste of Over-Processing
When you walk in the yard or plant, why do you see so much over-processing? Many times what I hear is, “this is how we have always done it!” Over the years, I have been to numerous companies that run huge batches of material, creating enormous amounts of WIP when they instead should reduce the batches, improve their flow, reduce lead time, and improve customer service.
In general, over-processing is caused by:
- Large batch sizes
- Unstable schedules
- Unreliable work processes
- Unbalanced or mis-scheduled cells or departments
- Working to a forecast/inaccurate information that is not actual demand.
Like overproduction, there are logistical and psychological causes. Often we produce large batches because of long setups on some of our machines, so we try to maximize our throughput of these machines and use “economical batch quantities” to dictate how much material is processed rather than what the customer wants. Other times we do not have reliable suppliers and so we “stock-up” on the supply we need. And finally, we have unreliable processes and schedules which cause us to plan for delays, plan for disruptions, etc.
How to Eliminate or Reduce Over-Processing
For starters, literally go see for yourself what you can uncover. Walk the yard and plant, see where your team is building in this over-processing (and overproduction), and begin to eliminate it. A few ideas to help you start reducing these wastes in your operation are:
- Realize you are doing it! We all need to understand that we often plan our own delays and large batches just because we always have done so.
- Tackle set-up times on equipment to enable the production of smaller batches.
- Implement the principles of lean manufacturing and identify the value stream using tools such value stream mapping, process mapping, spaghetti diagrams, and other analytical tools which we can help you with.
The TIMWOODS Journey
Identifying waste and eliminating it from our operations is a critical part of every Lean journey. We have enjoyed working through the various wastes that occur in lumber yards, millwork plants, and our component yards, and we have now addressed 7 of the 8: T-Transportation, I-Inventory, M-Motion, W-Waiting, O-Over-Production, O-Over-Processing, and D-Defects. Next up, we will tackle S-Skills. In the meantime, I invite you to go back and reread the series, and if you need additional help, it would be our pleasure to assist you.
Best Practice Tip – Attend the Show
This year’s BCMC Show is just around the corner, and if you have not signed up, it’s not too late. This year is going to be one of the biggest and best shows we have had to date. With more exhibitors and awesome educational sessions, you are certain to see a positive return on your investment. This year, we have 10 different educational sessions which cover many aspects of your operation. In addition, there is a pre-show seminar on risk management, a plant tour, golf outing, 5K, bike ride, and much more. Register today and join me and so many more who find this the most valuable show you will attend. You can find 4Ward Consulting Group in booth #1312 along with many other great exhibitors. Please stop by to say Hello as you walk the floor. See you there!
Ben Hershey is CEO of 4Ward Consulting Group, LLC, the leading provider of Management and Manufacturing Consulting to the Structural Component and Lumber Industry. A Past President of SBCA, he has owned and managed several manufacturing and distribution companies and is Six Sigma Black Belt Certified. Ben has provided consulting to hundreds of Component Manufacturers, Lumber Dealers, and Millwork Operations in the past seven years. He is highly recommended by customers and leaders throughout the industry. You can reach Ben at ben@4WardConsult.com or 623-512-6770.
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