Welcome to quick hits transportation. I'm Catherine MacGyver. And in this session, you'll have the ability to identify the waste of transportation.
So you remember Acronym? You're going to remember this when you're done with the course? Um, we're on T transportation.
All right. So what is the waste of transportation? This is caused by moving things around. Um, you see it really, really commonly in manufacturing of retail settings. And when I say that, what I mean is is that we made it in Kansas City. You, But we're selling it in Denver. So what? Because we made it there, we have to move it
Um, so you see some compounding effects based off of that, but you don't necessarily see transportation that much in office environments. It truly is a manufacturing retail waste. But when we talk about compounding effects were going to be talking about
the waste of inventory as well, which is
coming up next and the waste of waiting, which we just talked about a couple of sessions ago. So one is I gotta move this stuff, which is inherently wasteful. The other is I gotta wait for it to arrive So one of those, um, one of the waste that will generally be seen with other ones.
There are costs associated with the waste of transportation. This is generally from
we tie up additional funds in inventory. We have cost associated with the logistics of transportation. And then we also can see cost associated with damages to our inventory because every time we try to move it, we damage it. If you imagine cruising around the grocery store with a shopping cart and running into stuff,
that's kind of what happens when we move
So I want to pause for a second for your guys is workforce
is the waste of transportation something that is relevant to your work place and the types of things that your organization produces?
All right, So if you've decided that is relevant, which even if it's not, you're gonna have to learn. So, um, the waste of transportation can be caused by poor plant layout. So even if we don't have to move across straight line state lines, if we have a very largely expansive plant,
we have to move stuff around the plant.
Um, I did some work for a integrated circuit fabrication company where one of the things that we looked at was there actual plant floor plan and design on one of the things that was really interesting. There was they did some aspects of their manufacturing in one area and then packaged it up
and then moved the raw materials or the
the the work in progress to another area and did more aspects there. And there are sometimes necessity for it, Like in the in the integrated circuit they were pouring, so look on and then they were edging them. But there's also sometimes aspects of it. It's not a requirement. So being really critical, um,
waste can also be a necessary steps in the process.
So I have to. When I finish my integrated circuit, I have to package it up and send it to the warehouse, which then packages it up and ships it, whereas potentially improved process. Could be it ships directly from the end of the manufacturing line, and we skipped the warehouse entirely.
Um, it can also be caused by poorly designed systems.
So when we talk about poorly designed systems, we are talking about, um,
where things are and what they need to do and what the order that they need to get done are. So if you think about um, Kellogg's or a serial Kellogg's are in Central Michigan, most of the
we ingrained that goes into them has grown in the Midwest, so we have to package it up, send it to Michigan,
and then we repackage it for distribution across the nation. Aim or lean six. Sigma way of doing this. If we were to eliminate transportation, waste would be to have our manufacturing plant in the Midwest, where the wheat is grown, that that's a way to keep it in mind. Um,
we can resolve transportation ways
We can also do it by modifying our physical layout. So things like the integrated circuit plant we looked at what our physical layouts were and where we could do stuff to. Then next, one handle materials less every time you set something down and pick it up.
You do have the risk of the waste of transportation. You do have the risk of
damaging inventory by moving it, and then, by simplifying your process is so. This is where the waste really also,
compliments are true DM AIC, um, projects, because if you were to do, say, a current state process map and identify this waste throughout it, then you will find that maybe you can completely redesign the way that your processes are done toe. Eliminate transportation as a whole.
when you're thinking about transportation,
think about your grocery store imagery. Wouldn't it be convenient if everything in your basket was right there? You could grab it and check out. Rather, you have to move all the way around the store and grab the things that you need. It is important to know that transportation, as far as waste go,
can be difficult to resolve because it can require a significant investment. So when we use the Kellogg's example and moving
from central Michigan to the Midwest, where the corn is, that's going to be a huge decision for the organization and require buy in at all levels.
If the waste of transportation isn't something that shows up in your specific industry. In that case, just take note of it. When you see all the semi trucks on the interstate, that's the waste of transportation. Our next one up is going to be inventory guys