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
• Delivery(Customer)
• QCD is the source of
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
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
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
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. 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. 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
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
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
28.
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
Working density =
Actual work
The Three M’s (Cntd)
30
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
38.
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,
41. Contd….
Method
Waste of:- Large lot production, Inventory,
Conveyance, Retention, Non
standardization, Picking up setting down
work pieces.
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
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
