7 Wastes (MUDA)

 

What is Waste?

Waste is something that adds no value to the product or service. Every activity and element of a system (materials, humans, time, space, and energy) should add value to the output of the system. Combining materials to form a product or doing some service oriented task that makes a customer happy are value added activities.  Process like processing a purchase order is a non value added activity, even though it is necessary for doing value added activities. In this approach apart from the absolute necessary activities all other activities are under the scanner of waste.

Types of Waste:

The following sources of waste, identified by Toyota and first described by Taiichi Ohno, are universal in manufacturing. Though sources of waste vary within and across organizations, the similarities are great. The 7 waste as define TIMWOOD

1.    Waste in Transportation (T)

2.    Waste from Inventory (I)

3.    Waste of Motion (M)

4.    Waste of Waiting Time (W)

5.    Waste from Overproduction (O)

6.    Waste in Over processing (O)

7.    Waste from producing Defects (D)

 

1.   Waste in Transportation

Two things determine the movement of material or transport from one place to another, (a) Layout of the facility and (b) sequence of operation.  In many organizations the distance to move to process the item is too high, which also leads to increase in time required to produce. Since typically no work is performed, on items while they are being moved, time spent is wasted. All equipment and labor involved in moving and keeping track of the items is costly and wasted too.

2.   Waste from Inventory

Inventory is the root of all evil practices in an organization. Inventory is items waiting for something to happen. It may be in the form of raw material, packing material, in process goods or finished goods. Inventory holding cost includes charges for storage space, paper work, handling, insurance, security and pilferage. The capital for inventory purchase is blocked, so it blocks the working capital and interest needs to be paid for the same.

Inventory covers up other kind of wastes and encourages, or allows, wasteful practices. Some managers recognize it, but some considers it necessary to overcome other problems, while they fail to see other alternatives of this problem.

3.   Waste of Motion

Motion that is not necessary to do the work is considered as waste. Waste motions in a job can be searching, selecting, picking up, transporting, loading, repositioning and unloading etc. These motions cost’s the time and energy but does not add value to the product.  

Normal tendency of a company for increasing the output is to increase the number of workers or increase the working hours. Focus should be on attacking the waste of motion. This will increase the work contact by which output can be increased.

4.   Waste of waiting Time

Waiting means waiting for orders, parts, and materials, items from preceding process or for equipment repairs. In some major industries the operator uploads the items in automatic machine and since there is no man and machine interaction required he keeps waiting until the process the complete. Often, if the subsequent two machine speed is not synchronized, one has to wait for the other.

5.   Waste from Overproduction

Companies need to produce as much as the products sold or expected to be sold. But, to maintain the machine efficiency and keep the machines busy or poor forecasting from supply chain, the companies keep on producing extra materials. This additional stock adds to increase in inventory and accrue all wastes associated to inventory.

In organizations that habitually overproduce, all are busy in their respective works, which is adding to waste, nobody has time to focus on actual problem, the system.

6.   Waste in Over processing

Processing should be done to the level the customer requires. Doing the extra by which the customer neither benefited nor have an appealing to the product is a waste. If the technology or the material or process is not correct for the product over processing may occur.

Processing waste can be eliminated by taking advantages of natural forces such as gravity. Instead of a worker removing the part from the manufacturing line a chute through gravitational force can be used to disengage the product from the line.

7.   Waste from Producing Defects

Defects in any product or service are a major source of waste. If the defect is not detected by producer and it is detected at the customer end, it leads to loss of customer trust apart from warranty or replenishment cost. This is a loss of existing and potential customers who hear about the defect.

A defect generated at producer end increases the rework cost, time and resources to inspecting items, sorting out them as defective. Defective product accrues additional labor and material expenses related to disassembly and rework. For defective product, item, labor, material and resource expense to produce gets entirely rejected.

 

Another Waste: Talent

Employees are asset for the organization. Going through the process of the organization they all have lots of observations and improvement suggestions for improvement of the processes of the organization. Lot of organizations fails to collect the improvement ideas and do better for the organization. Right person should be placed at right position as per his capabilities and interest and skill. Sometimes, we miss talent for not re-evaluating the person as per his skill.