Extra Processing (or over-processing) occurs where unnecessary activities occur in the process which are not required by the customer and does not add value.
In manufacturing, extra processing is often hidden. For example, processes that rely heavily on inspection are unnecessary. Rather, the process should be designed to eliminate errors before they occur. Similarly, re-entering data into multiple information systems, making extra copies and generating unused reports are all examples of non-value add processing.
Whilst some may argue that these processes are required, they add no value for the customer. In a Lean environment, you cannot continue with extra processing simply because that’s the way things have always been done.
The costs associated with extra processing are considerable: Not only is time wasted, and materials consumed, but staff are being used for activities that the customer is not willing to pay for. Instead, those assets could be used in value-adding activities.
Without clear specifications and standards, extra processing is an easy trap to fall into. Clearly defined and accessible standard working practices, such as SOP’s, ensure that there are little to no differences between employees and shifts. Besides, many employees have no idea what adds value to the end-use of the product, and this can lead to unnecessary repetition of actions that they believe makes a big difference day-to-day.
The task of eliminating activities involved in extra processing may seem daunting, especially if “it has always been this way”. But, like any lean initiative, there needs to be a structured and reliable way to measure the process, to identify waste, eliminate it and continuously improve.
Perhaps the most important aspects of any lean initiative are to create a culture change throughout the organization, and to focus on training staff to be more empowered in their daily work. These fundamental principles can be applied outside of manufacturing, to almost every other aspect of life.
It is Haldan Consulting’s firm belief that you cannot achieve effective management of your processes without objective, quantifiable data. Data integrity will be enhanced by reducing the occurrence of data entry errors. When you create a digital-first process, it immediately avoids problems such as human error, repetitive data capturing and access to results being delayed. By automating the data collection of objective process information, you prevent the introduction of errors and save valuable time and human effort.
Haldan Consulting offers a range of software solutions dedicated to just this:
HaldanMES is an innovative visual Manufacturing Execution System, purpose-built by Haldan Consulting. It monitors your shop floor performance, by measuring OEE and enable you to continuously improve. This enables faster, leaner and smarter manufacturing. This software facilitates a lean culture and allows problem-solving teams to easily determine the root cause.
Goodbye Spreadsheets! HaldanMES makes data capturing simple, giving your team more time to analyze data in real time & compare it with historical data to gain new insights into persistent issues.
This product ensures that there is:
- Accurate data – it requires less manual entry and removes the possibility of human error
- No Delays in results – information is immediately available in real time
- Standardization – ensure that it’s repeatable
- No missing data – all time is accounted for
AutoEDI is a product used by several manufacturing concerns in the automotive industry. It handles the translation of EDI files, in all formats, into insightful information, and provides the export functionality to integrate that data into SYSPRO.
What AutoEDI does best is the translation of those files into something useful. Over the last decade, AutoEDI has enabled multiple file types (EDI formats), standards, variations, and processes, to be seemingly smoothed into a single process for the SYSPRO user. AutoEDI addresses many challenges facing SYSPRO and EDI, such as format variety and missing Masterdata.
Key Benefits of EDI:
- Automated data capturing – B2B data is computer-to-computer, which ensures accuracy by removing human error
- Time Saving – automated release population, sales order creation, labels, ASN and GRN’ing
- Identification of Forecast Variance – to highlight costs for air freight and overtime, and obsolescence costs caused by poor ordering
- Purchase Order Distribution Portal – extracts and sends your purchase orders to your suppliers without printing anything.
SYSPRO is a real-time, industry-built integrated ERP Software System. Haldan Consulting is a certified SYSPRO Premium Implementation Partner.
“For years, manually-inputted spreadsheets have gone hand-in-hand with ERP, which often result in manual capturing errors, and siloed information. There are a number of benefits in selecting a comprehensive ERP solution that can produce greater insights and negate the need for spreadsheets. Businesses that embrace automation see a reduction in the costs associated with human error, as it relates to data inputs, miscalculated quotations based upon old exchange rate or vendor/supplier information, and procurement among others. As data is centrally stored, operational and financial reporting becomes simpler and more valuable. By automating order processing, and other supply chain processes, you allow for production plans to be executed using LEAN principles.”
– JP van Loggerenberg, 2018 (ERP Solutions for Improved Planning, Production and Automation in the Manufacturing Industry)
For more information, contact Haldan Consulting: