Hey everyone, welcome back. In this lecture we will continue to explore the remaining four types of waste. Let's begin waste number five, transfer or transportation. In the manufacturing world, large conveyor systems, huge fleets of forklifts, and so on, make production more costly and complex and often reduce quality through handling and storing. Poor plant layout is usually to blame. Plants with function oriented departments require excessive material movement.

Likewise, in the service industry, improper planning of business processes where a transaction has to go through multiple handoffs and approvals before it finally gets processed. For example, if an employee travels to another international location for a brief period of three weeks, he is required to submit his expenses. In order to submit the expenses, he has to upload his bills or receipts of his expense, a bit details for each of the expenses in the system, get it approved by his manager and the cost code owner and then send it to the finance team for approval. This is a time consuming process and is mostly people dependent. It is nothing but the waste of transportation or waste of transfer. Some additional examples of waste of transfer our excessive back and forth repeated follow ups movement from location to location, building to building etc.

Waste number six waste of inventory. When inventories of raw materials finished goods or work in progress are maintained. Costs are incurred for investing Entry control, record keeping, storage and retrieval and so on. These functions add no value to the customer. Of course, some inventory may be necessary. But if a competitor finds ways to reduce costs by reducing inventory, business may be lost.

One of the most tempting times to let inventory levels rise is when the business cycle is in the economic recovery phase. Instead of increasing inventories based on forecasts, the proper strategy is to synchronize production to increase with actual demand. Similarly, production or administrative functions that use more space or other resources than necessary, increase costs without adding value. additional examples of waste of inventory are bottlenecks leading to staging areas for work in progress. Idle Or underutilized equipment is another example. Waste number seven waste of motion.

Waste of motion can be caused by poor workplace layout, including awkward positioning of supplies and equipment. This results in ergonomic problems, time wasted, searching for or moving supplies or equipment, and often in reduced quality levels. When you're identifying the waste of motion in your business, look for inefficient placement of office resources, physical distance between workstations and poor housekeeping. Number eight waste of excess processing. Excess processing is a form of waste that is often difficult to recognize. Sometimes entire steps in the value chain are non value added.

For example, information from customer purchase orders is sometimes entered into a database And the order itself is filed as a backup hardcopy to resolve any later disagreements, the company can technically discard the purchase order once the information has been entered. The process of filing, storing and maintaining these records require one to two employees performing non value added work. additional examples of the waste of excess processing are similar information being captured in several places, large variation in time to do similar task, unnecessary approvals, etc. So those are the eight different types of wastes. That brings us to the end of this lecture. Thank you for attending.

See you in the next one.