Overproduction Overproduction occurs when operations continue after they should have stopped. The results of overproduction are; Products being produced in excess of what’s required Products being made too early Excess inventory carrying costs

Waiting Also known as queuing, waiting refers to the periods of inactivity in a downstream process that occur because an upstream activity does not deliver on time. Idle downstream resources are then often used in activities that either don’t add value or result in overproduction.

Transport This is unnecessary motion or movement of materials, such as work-in-process (WIP) being transported from one operation to another. Ideally transport should be minimized for two reasons; It adds time to the process during which no value-added activity is being performed. Handling damage could be incurred

Extra Processing This term refers to extra operations, such as rework, reprocessing, handling or storage that occurs because of defects, overproduction or excess inventory.

Inventory This refers to inventory that is not directly required to fulfill current Customer orders. Inventory includes raw materials, work-in-process and finished goods. Inventory all requires additional handling and space.

Motion This term refers to the extra steps taken by employees and equipment to accommodate inefficient process layout, defects, reprocessing, overproduction or excess inventory. Motion takes time and adds no value to the product or service.

 “To move and add value is called work. To move and not add value is called motion. Motion, then, means moving without working, moving and adding cost”.

Defects  These are products or services that do not conform to the specification or Customer’s expectation, thus causing Customer dissatisfaction.