1. 1 ELIMINATE & PREVENT MUDA MUDA

2. Content 1)The concept of MUDA/Waste 2)Methods for categorizing types of Muda 3)MUDA identification 4)Elimination of Muda 5)Methods for Muda prevention

3. 1) The concept of Muda What is Value? Value is defined by your customer. There are two types of Customers:- -Internal customer -External customer Then Value is the activity/effect what the customer exactly is going to pay for/needs.

4. What is Waste/MUDA? Waste/MUDA is any activity of workers/machines which consumes resources such as money, time, energy, materials, etc without adding value.

5. The main elements of KAIZEN management Quality (Customer) Safety Cost (Company) Morale Cost (Company) Morale Delivery(Customer) Delivery(Customer) QCD is the source of QCD is the source of productivity improvement productivity improvement 5

6. The concept of cost Cost minimization Determination of the sales price of the product Sales price=(manufacturing)cost + profit Manufacturing cost=(material + labor + facility + utility + others)cost

7. C O S T MINIMIZEMINIMIZE Better Quality On time Delivery On time Delivery Higher Profit Profit=Price-Cost ??? CUSTOMER Reasonable Price MANUFACTURER 7

8. PRICE=COST + PROFIT PROFIT= PRICE - COST Company sets price(Demand>Supply) Market sets price (Demand≤Supply) Traditional Thinking Kaizen Thinking 8

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10. Therefore, since today’s economy is market based, we should focus on minimizing our COST to get higher profit. Do we have any choice? 10

11. The three categories of Operations Value Adding/Net Operation Non Value Adding Operation Muda/Waste

12. The three categories of Operations ( 1) Net Operation Part of the operation that adds value to make parts and products Examples, Milling, Turning, Grinding, Assembling and Welding 12

13. (2) Non-Value adding Operations Operation that adds no value but cannot be avoided Example Setting up, Inspecting, Picking up parts, Removing drill chips The three categories of Operations 13

14. The three categories of Operations(Cntd) (3) “Muda” Muda is a Japanese word meaning Wasteful Activity Is anything unnecessary in operation. Can be eliminated immediately 14

15. (3) “Muda” It increases Production cost Muda affects the quality of the product and also delivery time The three categories of Operations(Cntd ) 15

16. Non-value adding and wastes movements searching for tools transporting materials over production waiting /idle time making defects etc Value adding assembling molding spinning mixing building milling etc “Muda” are activities which use resources, time or cost without adding value. 16

17. Value Chain ConsumersSuppliers Reduce Lead Time Non Value Added & Waste activities 17

18. Product Lead-Time freeleansite.com Raw Materials Finished Goods Value Added Time Non- Value Added Time TIME

19. Operation to staple two papers using a stapler when work place is disorganized Materials and tools – Two pieces of paper – Stapler – Staples Very Simple Drill 19

20. Very Simple Drill Result in a disorganized environment N0.ActivitiesTimeType of Operation MeasureHow 1Searching for Stapler 35 SecMudaEliminate5S(Set-in-order) 2Searching for Staples 30 SecMudaEliminate5S(Set-in order) 3Putting the Staples into the stapler 8 SecNon-Value adding MinimizeLoad staples ahead 4Putting the two papers together 3 SecNon-Value adding - - 5Staple the papers2 secNet Operation (Value Adding) - - 20

21. Lessons from the drill Total time of operation=78 Sec  Net Operation(Value adding)=2 Sec(2.6%)  Non-Value adding operation=11 Sec(14.1%)  Muda(Unnecessary operation)=65Sec(83.3%) 21

22. Can you imagine by how much the total time of the operation can be improved if we try to eliminate the Muda and minimize non value adding operations by applying 5S? What if the job order was to produce a car? Imagine the MUDA. Lessons from the drill 22

23. MUDA = Anything Unnecessary 23

24. 2)Methods For Categorizing Types of Muda/Wastes Classification of waste A number of methods for classification of waste have emerged. Here are some of them:-  The 3MU’s  5M+Q+S  The flow of goods  The Seven deadly wastes

25. Muda Muri Mura 1) The 3MU’s

26. MUDA - Capacity exceeds load. MURA (imbalance or variation) = capacity sometimes exceeds the load and the load sometimes exceeds capacity. MURI (Physical or mental overburden)- Load exceeds capacity. Productivity improvement does not mean hard work. The Three MU’s 26

27. The Three M’s Muda Production factors that increase cost, in other words, all unnecessary things 27

29. Muri Mental and physical overburden on operators, and overburden on production machinery The Three M’s (Cntd) 29

30. Muri We should not force hard work on Employees in the name of productivity improvement Value added work Value added work Working density = Actual work Actual work The Three M’s (Cntd) 30

31. Muri : overburden

32. Muri

34. Mura Variation in work distribution, production capacity of machinery, and material specifications The Three M’s 34

35. INOUT

36. Relationship between the 3 M’s Usually Mura creates Muri which in turn lead to generation of Muda 36

37. Therefore, mura creates muri that undercuts previous efforts to eliminate muda. Eliminating mura is fundamental to the complete elimination of muri and muda Relationship between the 3 M’s 37

39. 2) 5M+Q+S Is another way of thinking in the areas where waste may occurs 5M(man, material,machine, method and management), plus Quality and Safety.

40. Contd… Material Waste of:- Parts, Bolts, Welds, Functions, Storage & Handling. Man/Workers Waste of:- Walking, Waiting, Searching, Unnecessary movements Management Waste of:- Materials, Meetings, Management control, Communications, Vouchers Machine Waste of:- Large machines, General purpose machines, Conveyors, Machines with wasteful movements, Breakdowns, Machine handling

41. Contd…. Method Waste of:- Large lot production, Inventory, Conveyance, Retention, Non standardization, Picking up setting down work pieces.

42. Contd… Quality Waste in:- Making defective goods, Fixing defects, errors, Inspection, Quality control. Safety Waste of:- Disaster prevention methods, Fixing defects.

43. 3) The Flow of Goods A third way of thinking about waste is to focus on the flow of goods in production. Materials are procured Materials are retained Materials are conveyed to processes on production line Materials are retained at the process equipment(WIP) Materials are picked up for processing Materials are processed Processed goods are set down and retained on the other side of the processing machine(WIP) Goods are conveyed to inspection point Goods are retained until inspection Goods are picked up and inspected Goods are set down and retained on the other side of inspection process Inspected goods are conveyed to the finished goods warehouse Finished goods are retained prior to shipment

44. Cont….. If we look carefully at the flow of goods, you will see four things going on:-  Retention, Conveyance, Processing and Inspection Retention-means stopping the flow of goods producing inventory without adding value. -It adds cost without adding value. Conveyance-movement b/n retention points without adding value. Material handling movement b/n a retention point & a process.

45. Contd…….. Processing-means adding value or altering raw materials/parts /assemble parts to add value. Inspection-identifies defects from production flow. It doesn’t add value b/c it doesn’t eliminate the source.

46. 4)The Seven deadly wastes 1) “Muda” of Overproduction 2) “Muda” of Inventory 3) “Muda” of Waiting 4) “Muda” in Transporting 5) “Muda” of Defect-making 6) “Muda” of Motion 7) “Muda” in Processing Cost Reduction by Elimination of muda

47. 7 Categories of Waste Defect Making Transportation Over Produced Motion Inventory Over Processed Waiting 47

48. Steps to effective Muda identification 1.Making waste visible 2.Be conscious of the waste 3.Be accountable for the waste 4.Measure the waste 5.Eliminate or reduce the waste

49. The steps to effective waste elimination are 1. Make waste visible 2. Be conscious of the waste 3. Be accountable for the waste. 4. Measure the waste. 5. Eliminate or reduce the waste 49

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