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  2. 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. 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. 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. 5. The main elements of KAIZEN management • Quality (Customer) Safety • Cost (Company) Morale • Delivery(Customer) • QCD is the source of productivity improvement 5
  6. 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. 7. C O S T M I N I M I Z E Better Quality On time Delivery Higher Profit Profit=Price- Cost ምን ይሻላል??? CUSTOMER የትም ፍጭው ዱቄቱን አምጭው Reasonable Price 7
  8. 8. PRICE=COST + PROFIT PROFIT= PRICE - COST Company sets price(Demand>Supply) Market sets price (Demand≤Supply) TraditionalThinking KaizenThinking 8
  9. 9. 9
  10. 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. 11. The three categories of Operations • Value Adding/Net Operation • Non Value Adding Operation • Muda/Waste
  12. 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. 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. 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. 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. 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. 17. Value Chain Consumers Suppliers Reduce Lead Time Non Value Added & Waste activities 17
  18. 18. Product Lead-Time freeleansite.com Raw Materials Finished Goods Value Added Time Non- Value Added Time TIME
  19. 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. 20. Very Simple Drill Result in a disorganized environment N0. Activities Time Type of Operation Measure How 1 Searching for Stapler 35 Sec Muda Eliminate 5S(Set-in- order) 2 Searching for Staples 30 Sec Muda Eliminate 5S(Set-in order) 3 Putting the Staples into the stapler 8 Sec Non-Value adding Minimize Load staples ahead 4 Putting the two papers together 3 Sec Non-Value adding - - 5 Staple the papers 2 sec Net Operation (Value Adding) - - 20
  21. 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. 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. 23. MUDA = Anything Unnecessary 23
  24. 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. 25. Muda Muri Mura 1) The 3MU’s
  26. 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. 27. The Three M’s Muda • Production factors that increase cost, in other words, all unnecessary things 27
  28. 28. Muri • Mental and physical overburden on operators, and overburden on production machinery The Three M’s (Cntd) 29
  29. 29. Muri We should not force hard work on Employees in the name of productivity improvement Value added work Working density = Actual work The Three M’s (Cntd) 30
  30. 30. Muri : overburden
  31. 31. የስራ ጫና Muri
  32. 32. የስራ ጫና Muri
  33. 33. Mura • Variation in work distribution, production capacity of machinery, and material specifications The Three M’s 34
  34. 34. IN OUT
  35. 35. Relationship between the 3 M’s • Usually Mura creates Muri which in turn lead to generation of Muda 36
  36. 36. • 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
  37. 37. 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.
  38. 38. 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,
  39. 39. Contd…. Method Waste of:- Large lot production, Inventory, Conveyance, Retention, Non standardization, Picking up setting down work pieces.
  40. 40. Contd… Quality Waste in:- Making defective goods, Fixing defects, errors, Inspection, Quality control. Safety Waste of:- Disaster prevention methods, Fixing defects.
  41. 41. 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
  42. 42. 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.
  43. 43. 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.
  44. 44. 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
  45. 45. 7 Categories of Waste Defect Making Transportation Over Produced Motion Inventory Over Processed Waiting 47
  46. 46. 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
  47. 47. 50