To get a world-class company it is fundamental to eliminate and avoid any waste (muda) in manufacturing and also service processes. Waste is any activity or process that adds cost but adds no value (for the customer). Up to 80% of the work that goes on in any organisation is adding no value to your customers Muda = waste (in its many forms)
Muda (is a Japanese word meaning "futility; uselessness; idleness; superfluity; waste; wastage; wastefulness",and is a key concept in the Toyota Production System (TPS) as one of the three types of waste (muda, mura, muri). Waste reduction is an effective way to increase profitability. Toyota merely picked up these three words beginning with the prefix mu-,which in Japan are widely recognized as a reference to a product improvement program or campaign. A process adds value by producing goods or providing a service that a customer will pay for. A process consumes resources and waste occurs when more resources are consumed than are necessary to produce the goods or provide the service that the customer actually wants. The attitudes and tools of the TPS heighten awareness and give whole new perspectives on identifying waste and therefore the unexploited opportunities associated with reducing waste. Muda has been given much greater attention as waste than the other two which means that whilst many Lean practitioners have learned to see muda they fail to see in the same prominence the wastes of mura (unevenness) and muri (overburden). Thus whilst they are focused on getting their process under control they do not give enough time to process improvement by redesign.
Category of Waste (Muda) : Type one vs. type two
Waste can also be categorized as:
1.Type one muda - adds no value and can be eliminated immediately. "That's embarrassing. Let's stop doing that." 2.Type two muda - adds no value, but is required for the way things are currently done. (e.g. inspection, paperwork, and all of the above types of deadly waste)
The 7 Types of Waste in Manufacturing Organizations (MUDA ) defined by Taiicho Ohno (Toyota executive, 1912-1990) 1. Defects
2. Overproduction of things not demanded by actual customers 3. Inventories awaiting further processing or consumption 4. Unnecessary over-processing (for example, relying on inspections rather than designing the process to eliminate problems) 5. Unnecessary motion of employees
6. Unnecessary transport and handling of goods
8. Confusion - missing or misinformation. Confusing goals & metrics. 9. Unsafe or unergonomic work conditions
10. Underutilized human potential - skills, talents, and creativity
Having a direct impact to the bottom line, quality defects resulting in rework or scrap are a tremendous cost to organizations. Associated costs include quarantining inventory, re-inspecting, rescheduling, and capacity loss. In many organizations the total cost of defects is often a significant percentage of total manufacturing cost. Through employee involvement and Continuous Process Improvement (CPI), there is a huge opportunity to reduce defects at many facilities.
2) Overproduction of things not demanded by actual customers Overproduction is to manufacture an item before it is actually required. Overproduction is highly costly to a manufacturing plant because it prohibits the smooth flow of materials and actually degrades quality and productivity. The Toyota Production System is also referred to as “Just in Time” (JIT) because every item is made just as it is needed. Overproduction manufacturing is referred to as “Just in Case.” This creates excessive lead times, results in high storage costs, and makes it difficult to detect defects. The simple solution to overproduction is turning off the tap; this requires a lot of courage because the problems that overproduction is hiding will be revealed. The concept...