Overproduction Waste
This occurs due to failure of production planning when money is blocked in the unsold products. It also occurs when operations continue after they should have stopped.
Waste due to waiting
Work-In-Progress is a direct measure of quality of the organization. It is Also known as queuing, waiting refers to the periods of inactivity in a downstream process.
Transportation
Unnecessary transportation is a waste.
Processing Waste
The machinery should be kept in a smooth working condition by periodic and preventive maintenance to eliminate processing waste.
Inventory Waste
Supply chain management should be such that there are no excuses materials. Similarly, the organization should produce exact number of every part.
Waste of Motion
If the workers are not trained in their job properly there will be lot of motion but no work.
Product Defects
The defective parts or supplies cause loss of money.
BUSINESS PROCESS REENGINEERING (BPR) BPR is undertaken essentially to result in a quantum jump in performance of processes. BPR is “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical, contemporary measures of performance, such as cost, quality, service and speed”.
Fundamental Rethinking Dramatic improvements can take place through eliminations of redundant operations, unnecessary operations and operations, which add cost, but, not value to the products and services.
Radical Redesign Dramatic improvements cannot be achieved only through fundamental rethinking. It calls for design of new processes.
How to Carry out Reengineering
The Five phases of reengineering cycle are:
1. Planning
2. Process Study
3. Study of the best practices
4. Redesign
5. Implementation
Information Technology Information technology (IT) has historically played an important role in the reengineering concept. It is considered by some as a major enabler for new forms of working and