Muda - Waste reduction

May 3, 2023 PROPERTY OF INDUS BUSINESS ACADEMY 1

MUDA WASTE REDUCTION

SUBMITTED BY JAYESH CHOUHAN (FPB1517/052)

RAHUL DUTTA (FPB1517/057)

SUBMITTED TOPROF. SURESH V. CHANDRA


Introduction: Muda is a Japanese term which means “WASTE”.

It is any activity which adds costs or time to the company but does not add any value.

Wastage is consuming more resources (time, money, space, etc.) than are necessary to produce the goods, or services, that the customer wants.

Types of Waste:• Pure Waste: Waste that could be reduced without affecting the customer and sales is called pure waste.

Example: Holding excess inventory.• Incidental Waste: Actions that need to be done based on how the current system operates but do not

add value are incidental waste. Example: Over processing of goods.


The 8 types of waste


Overproduction It refers to the process where more than needed is produced to meet order requirements, sooner and faster than it is needed, it causes almost all other types of waste.

This is the worst waste of all kinds because it helps cause almost all the other kinds of wastes.

It leads to excess inventory, paperwork, handling, storage, space, interest charges, machinery, defects, people and overhead.

Common causes:• Producing more than is required to make up for yield loss.• Scheduling production to forecasted demand.• Unnecessary production to show higher machine utilization (or lower manufacturing cost)


Strategies to eliminate Overproduction The first step is to realize that we are doing it, because it is often very difficult to realize as every seems to be busy.

Strong production planning and control.

Production according to customer schedule.

Adopting to suitable demand forecasting methods and making periodical updates to the system.


Inventory Inventory comprises of finished goods semi-finished products or parts and supplies. Excess inventory is a real waste as it dose not add value but add to the cost.

It requires people, equipment and space to count, transport, store and maintain it.

If we do not get orders the material will become obsolete, and be thrown away.

Common causes:OverproductionPoor equipment layoutDefective, or questionable partsMismatched production speeds


Strategies to eliminate excess Inventory Dispose off obsolete material to save space and to avoid confusion.

Do not produce items ahead of customer's delivery requirements.

Do not manufacture products in excess of customer's requirements.

Making value flow at the pull of the customer, the idea of Just in Time (JIT) production.


Waiting It occurs when worker or machine is not performing its job. People may be waiting for parts or instructions. Mostly they are waiting for one another, which often happens when they are not aligned to their objectives. The talent of employees is also wasted. Waiting for parts, instructions, approval, information, maintenance, decisions. Common causes:

Mismatched production ratesPoor layoutMachine breakdownsExcessively staffed


Strategies to eliminate waste in Waiting Balance the workload by redistributing tasks in the process.

Eliminate unnecessary approval processes.

Build other tasks into the daily work schedule so that employees are occupied during waiting periods.

Prevent delays by providing for backups.


Motion Walking without working (away from workstation) .

Searching for tools, materials or information.

Reaching, bending or unnecessary motion due to poor housekeeping or workplace layout.

Process is not designed with employees in mind.

Strategies to eliminate • Motion economy principal• Effective supervision


Transportation It is highly visible form of waste unnecessary transportation create the need for more storage space, more equipment's and workers.

Poor layouts lead to things being moved multiple times.

If things are not well place, they can be hard to find.

Material can get damaged if it’s moved too much.

Common causes:Excessive distance between operations (layout).Single skill focused operations.


Strategies to eliminate Transportation waste

Store material as close to the point of use as possible

Avoid transportation over long distance.

Avoid over production.


Over Processing Doing more than is necessary to produce an effectively functioning product.

Extra setup steps, over-specification of the process, extra processing steps.

Common causes:Lack of standard work or processesEquipment over designedProcess not updated with technology changes


Strategies to eliminate over processing Identify where delays occur in the process and quantify if it is avoidable delay and unavoidable delays

Eliminate avoidable delay in the process. This is a waste in processing


Defects Defects imply rework or reject. Research confirms that 20 to 30% of manufacturing company’s gross revenues are spent on correcting mistake.

Defects cause rework, confusion and upsets a synchronized set of processes.

Product defects leads to loss of customer & future business.

Common causes:• Incorrect product design• Defective materials• Poorly trained employees


Strategies to eliminate defects Implement standard operations procedures (SOP) and training to ensure that the correct methods are undertaken and standards achieved.

Design reviews.

Training to employees.

Maintenance of machines and equipment.


People Skill’s Employees are seen as a source of labor only, not seen as true process experts.

People are told what to do, and asked not to think how to do it more effectively.

Employees are not involved in finding solutions, opportunities to improve the process.

Strategies to eliminate wastage• People are the biggest asset, respect them, nurture them and involve them indecision making process.• Team working, training, and clear leadership are required to stop wastage in people skill’s.


THANK YOU !!

Muda - Waste reduction

Business

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