implementing Lean Principles in manufacturing organizations is the elimination or postponement of plans
for expansion of warehouse space.
• Defects – Production defects and service errors waste resources in four ways. First, materials are consumed.
Second, the labor used to produce the part (or provide the service) the first time cannot be recovered. Third,
labor is required to rework the product (or redo the service). Fourth, labor is required to address any
forthcoming customer complaints.
• Excess Motion – Unnecessary motion is caused by poor workflow, poor layout, housekeeping, and
inconsistent or undocumented work methods. Value Stream Mapping (see above) is also used to identify this
type of waste.
• Underutilised People – This includes underutilization of mental, creative, and physical skills and abilities,
where non-Lean environments only recognize underutilization of physical attributes. Some of the more
common causes for this waste include – poor workflow, organizational culture, inadequate hiring practices,
poor or non-existent training, and high employee turnover.