The original seven wastes (Muda (Japanese term)) were defined by Taiichi Ohno, the father of the Toyota Production System. These wastes have been often redefined to better fit new organizations, industries, or external pressures. The effect of the waste is visible in a manufacturing industry. Adopting the Seven wastes in Service industry is really difficult as the flow and the loss due to these wastes is invisible and mostly incidental.
One redefinition of the 7 wastes in service industry given by Bicheno and Holweg (2009) is as follows:
1. Delayon the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised. The customer’s time may seem free to the provider, but when she takes custom elsewhere the pain begins.
2. Duplication. Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organization.
3. Unnecessary Movement. Queuing several times, lack of one-stop, poor ergonomics in the service encounter.
4. Unclear communication, and the wastes of seeking clarification, confusion over product or service use, wasting time finding a location that may result in misuse or duplication.
5. Incorrect inventory. Being out-of-stock, unable to get exactly what was required, substitute products or services.
6. An opportunity lost to retain or win customers, a failure to establish rapport, ignoring customers, unfriendliness, and rudeness.
7. Errors in the service transaction, product defects in the product-service bundle, lost or damaged goods.