Thursday, April 8, 2010

Eliminating Waste?

I've been thinking about lean operations, a lot, lately. What makes them lean is that they eliminate waste, i.e., any activity that does not add value. Generally credited to Toyota, the main sources of waste are typically:
  1. waiting
  2. defects
  3. inventory
  4. overproduction
  5. unnecessary transport
  6. unnecessary human motion
  7. unnecessary processing.
As I explain in my forthcoming book, McGraw-Hill 36-Hour Course in Operations Management, "In examining a lean transformation system, activities are considered value-added (e.g., patient diagnosis); non-value-added but necessary (e.g., requiring patients to sign a HIPAA form); or non-value-added and not necessary (e.g., waiting for the doctor)."

Lean concepts are applied to a wide variety of operations, and can certainly apply to personal effectiveness. I recently learned of an application than I thought might have gone too far.

According to American Public Media's radio show, "Marketplace," Ireland-based "Ryanair, a budget carrier... is considering a plan to charge for use of its lavatories on short flights." Unnecessary... processing? According to the report, the airline wants to modify passengers' behavior on short flights. I can only imagine. I suppose an infrequently used toilet requires less service? Ultimately, if they are able to reduce the number of lavatories needed on each plane, they can add more revenue-producing seats.

But really, is it in the spirit of lean operations that they are eliminating... eliminating waste?