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M U D A Ellimination

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Information about M U D A Ellimination

Published on February 9, 2008

Author: dmrpanda

Source: slideshare.net

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Welcome to 3 rd Day of Understanding CoPQ & Identifying MUDA; Feb 5-7, 08

Feb 7, 2008

When he set out, he didn’t know where he was going; When he got there, he didn’t know where he was; When he returned, he didn’t know where he had been; He did it all, with borrowed money. Christopher Columbus School of Mgmt

Changed Business Scenario I want my Japanese out-fit not to out run the lion, but to be one step ahead of you .

Over-manned Flight Employees/Aircraft Passenger/Employee Air-India 664 153 Singapore airlines 341 441 Air France 277 426 Emirates 267 703 British Airway 227 573 Lufthansa 185 714 United Air lines 174 953 Japanese Airlines 146 1589 Industry Average 162 986 Source : BW, December 9, 2002

Can you please do an hour’s worth job in a day! Taiichi Ohno Non-value activities adds up to the cost

What We do in a Business Process? Adding Value through a Value-Added activity Or Generating Waste or MUDA through a Non-Value-Added activity

Adding Value through a

Value-Added activity

Or

Generating Waste or MUDA through a

Non-Value-Added activity

Business Process

Organization’s Value Stream Process-1 V W Process-2 V W Process-3 V W Process-4 W Product V Input It is a network of different Business Processes. V : Value added product/services W : Wasteful product / practices/services that does not add value

Value Stream of a Power Generation Co. C u stomer Boiler Value Stream Suppliers Water Fuel Generator Power Grid Service Departments

Economic Value of Waste Every business activity absorbs resources and every resource has a cost Every waste has a cost , and that is direct loss to the company. Economic value of waste in a process industry are in the range of 10 -35% of annual turnover

Every business activity absorbs resources and every resource has a cost

Every waste has a cost , and that is direct loss to the company.

Economic value of waste in a process industry are in the range of 10 -35% of annual turnover

Integrated Quality Quality Customer Requirements Process Capability Cost Selling Price Production Cost Delivery Customer Schedule Process Speed Supplier Customer

Waste : the value destroyers Quality Customer Requirements Process Capability Cost Selling Price Production Cost Delivery Customer Schedule Process Speed Supplier Customer Defects Delays Resource Waste

OBJECTIVES of Improvement Initiatives

OBJECTIVES of Improvement Initiatives Improved Profitability Enhanced Competitiveness QUALITY Reduce Defects COST effectiveness Reduce Waste DELIVERY Reduce Delays Improvement Initiatives

Increasing Profit by Increasing Price

Increasing Profit by reducing Cost

Changing the performance level Current State Future State Value Waste Value Waste Performance level Time frame Ideal State

What is Lean?

Lean is not New

 

Employees are very busy and working hard, but nothing seems to be getting done; Employees (good ones) are being pulled in many directions; Activities that add little value to the organization but absorb organizational resources ; Rework; Emergencies and fire-fighting ; Busy work schedules; What do all these items have in common?

Employees are very busy and working hard, but nothing seems to be getting done;

Employees (good ones) are being pulled in many directions;

Activities that add little value to the organization but absorb organizational resources ;

Rework;

Emergencies and fire-fighting ;

Busy work schedules;

Employees are very busy and working hard, but nothing seems to be getting done Emergencies and fire-fighting Busy work schedules Employees are (good ones) being pulled in many directions Outdated processes that we do, "because we've done them this way for many years" Activities that simply add no value to the organization Changing project scope will into the project Projects that add little value to the organization but absorb organizational resources Projects that don't finish False starts on projects or initiatives Rework Constantly changing project scope What do all these items have in common?

Employees are very busy and working hard, but nothing seems to be getting done

Emergencies and fire-fighting

Busy work schedules

Employees are (good ones) being pulled in many directions

Outdated processes that we do, "because we've done them this way for many years"

Activities that simply add no value to the organization

Changing project scope will into the project

Projects that add little value to the organization but absorb organizational resources

Projects that don't finish

False starts on projects or initiatives

Rework

Constantly changing project scope

 

 Unnecessary M otions  W aiting for work and materials  T ransportations  O verproduction  P rocessing  I nventories / Unnecessary WIP  C orrective operation 7 Seven MUDA [Wastes]

Eliminating Muda Motion: using unnecessary movement and energy used to perform tasks. Waiting : workers rendered idle by excessive set- up or equipment breakdowns. Transport : poor timing; too frequent or infrequent movement of goods and deliveries. Overproduction : Producing items not immediately needed. Processing : imposing inefficient and unnecessary tasks; failing to synchronize systems. Inventory : stocking items not immediately needed. Correction/Repair : Producing defective products.

Motion: using unnecessary movement and energy used to perform tasks.

Waiting : workers rendered idle by excessive set- up or equipment breakdowns.

Transport : poor timing; too frequent or infrequent movement of goods and deliveries.

Overproduction : Producing items not immediately needed.

Processing : imposing inefficient and unnecessary tasks; failing to synchronize systems.

Inventory : stocking items not immediately needed.

Correction/Repair : Producing defective products.

MUDA of Motion [1/7] using unnecessary movement and energy used to perform tasks.

using unnecessary movement and energy used to perform tasks.

MUDA of Motion

MUDA of Motion

Movement that does not add value: Searching for files Extra clicks or key strokes Clearing away files on the desk Gathering information Looking through manuals and catalogs Handling paperwork MUDA of Motion [1/7]

Movement that does not add value:

Searching for files

Extra clicks or key strokes

Clearing away files on the desk

Gathering information

Looking through manuals and catalogs

Handling paperwork

MUDA of Motion Solution of MUDA Motion?

What She is doing?

What they are doing?

MUDA of Waiting [2/7]

MUDA of Waiting

Waiting & Wasting Time

Idle time created when material, information, people or equipment is not ready. Waiting for: Faxes The system to come back Copier machine Customer response A handed off file to come back MUDA of Waiting [2/7]

Idle time created when material, information, people or equipment is not ready.

Waiting for:

Faxes

The system to come back

Copier machine

Customer response

A handed off file to come back

MUDA of Transport [3/7] I am more expensive since raw material is coming from a far off place.

Movement of information that does not add value: Carrying documents to and fro from shared equipment Taking files to another person Going to get signatures MUDA of Transport [3/7]

Movement of information that does not add value:

Carrying documents to and fro from shared equipment

Taking files to another person

Going to get signatures

MUDA of Over production [4/7] “ the more, the merrier

Generating more information than the customer needs right now: More information than the customer needs Creating reports no one reads Making extra copies More information than the next process needs MUDA of Over production [4/7]

Generating more information than the customer needs right now:

More information than the customer needs

Creating reports no one reads

Making extra copies

More information than the next process needs

MUDA of Process [5/7] No more MUDA of Process

MUDA of Process No MUDA of Process

MUDA of Process Using more expensive equipment or tools where simpler ones would suffice. Having meetings that are not needed. Having people at meetings that are not required. Agenda points, not to be included;

Using more expensive equipment or tools where simpler ones would suffice.

Having meetings that are not needed.

Having people at meetings that are not required.

Agenda points, not to be included;

Efforts that create no value from the customer viewpoint: Creating reports Repeated manual entry of data Excessive paperwork Duplicacy of work Use of outdated standard forms Use of inappropriate software MUDA of Process

Efforts that create no value from the customer viewpoint:

Creating reports

Repeated manual entry of data

Excessive paperwork

Duplicacy of work

Use of outdated standard forms

Use of inappropriate software

MUDA of Inventory [6/7]

More information, project, material on hand than the customer needs right now: Files waiting to be worked on Open projects Office supplies E-mails waiting to be read Unused records in the database QUALITY 1’ST

More information, project, material on hand than the customer needs right now:

Files waiting to be worked on

Open projects

Office supplies

E-mails waiting to be read

Unused records in the database

Inventory is a sign or symptom of waste somewhere.

Why Work Smarter? Working smarter releases tremendous amounts of capacity within your organization – capacity that you did not realize you had. By working smarter, it is not unrealistic to find that you can accomplish 100% more work with the same resources. If you continue to work at it, you can double your capacity again for a 300% total increase. That is the real power of business process management . The symptoms of working smarter include: Going home on time to see your family Completing all assigned work and meeting your deadlines Focusing on one project at a time Getting your work done right the first time Working only on value added activities Getting more done with less resources

Why Work Smarter?

Working smarter releases tremendous amounts of capacity within your organization – capacity that you did not realize you had. By working smarter, it is not unrealistic to find that you can accomplish 100% more work with the same resources. If you continue to work at it, you can double your capacity again for a 300% total increase. That is the real power of business process management .

The symptoms of working smarter include:

Going home on time to see your family

Completing all assigned work and meeting your deadlines

Focusing on one project at a time

Getting your work done right the first time

Working only on value added activities

Getting more done with less resources

MUDA of Correction [7/7]

Why Repair/Replacement in Warranty period be a MUDA?

Rule of 10 Prevention:Correction:Failure = 1:10:100 100 10 1

Prevention:Correction:Failure

= 1:10:100

Strategy Premise The Strategy is based on the premise that: For each failure there is a root cause. Causes are preventable. Prevention is always cheaper. ACQC, Principles of Quality Costs, 1986 Cost of uality

The Strategy is based on the premise that:

For each failure there is a root cause.

Causes are preventable.

Prevention is always cheaper.

MUDA of Correction [7/7]

MUDA of Correction [7/7] Making a Swing!!

Making a Swing

Making a Swing

Making a Swing

Making a Swing

Making a Swing

Work that contains errors, rework, mistakes or lacks something necessary: Data entry error Pricing error Missing information Missed specifications Lost records Rework Rescheduling meetings 7/7 Wastes of Information

Work that contains errors, rework, mistakes or lacks something necessary:

Data entry error

Pricing error

Missing information

Missed specifications

Lost records

Rework

Rescheduling meetings

Traditional Practices

Some More Examples

 

 

I wish everybody ware keep their things in orderly fashion.

 

 

Start it at your own desk first !   Well arranged drawer ensures easy visibility & simpler monitoring.                                                                                                                                                                            Each item traced easily. Unwanted items removed through SEIRI. Missing items detected immediately. 15% search time eliminated, thus net working time increased. Prevents frustration & distress.

Each item traced easily.

Unwanted items removed through SEIRI.

Missing items detected immediately.

15% search time eliminated, thus net working time increased.

Prevents frustration & distress.

MUDA is eliminated or Generated?

 

Clean As you Go

15 14 13 12 Boss’s Cabin 10 9 8 7 6 5 4 3 2 1 Secretary’s Desk MUDA of ??

DESIRED LAYOUT 13 12 MD’s Cabin 10 9 8 7 6 5 4 3 2 1 DESIRED LAYOUT TO BE MADE USING ALL VISUALS, ALTERNATIVES CAN BE BRAINSTORMED WITH COLLEAGUES 11 Secretary’s Desk Filing Cabinets in U-Shape to have faster and easy accessibility MAKE A DESIRED LAYOUT BASED ON SEITON GUIDELINES

MUDA Increasing or Decreasing

Which MUDA is getting eliminated

Which MUDA is getting eliminated

 

MUDA Exercise In a scale of 1 to 10, with 1 being Poor and 10 being Excellent/ near World Class, where would you rate Vindhyachal presently? 10 9 8 7 6 5 4 3 2 1

In a scale of 1 to 10, with 1 being Poor and 10 being Excellent/ near World Class, where would you rate Vindhyachal presently?

In a scale of 1 to 10, with 1 being Poor and 10 being Excellent/ near World Class, where would you rate your Deptt. / office presently? MUDA Exercise 10 9 8 7 6 5 4 3 2 1



In a scale of 1 to 10, with 1 being Poor and 10 being Excellent/ near World Class, where would you rate your Deptt. / office presently?

MUDA Exercise Bring out, in groups, the MUDAs happening around you (not more than 5); Classify them into two categories; which can be handled by your workgroup and which are beyond Expected Saving (money, energy, frustrations etc)

Bring out, in groups, the MUDAs

happening around you (not more than 5);

Classify them into two categories; which can be handled by your workgroup and which are beyond

Expected Saving

(money, energy, frustrations etc)

Possibility for Improvement-Singrauli In My work-Group Filiing system- info upkeep, system Inventry unbalance Incorrect preparation of scope of work & defects in raising indents Repeat sampling & testing Beyond My work-Group Segretaion of obsolete inventory & keeping them separatly Disposal of old records & logbooks Two lab buildings, separated by 100 meters

In My work-Group

Filiing system- info upkeep, system

Inventry unbalance

Incorrect preparation of scope of work & defects in raising indents

Repeat sampling & testing

Beyond My work-Group

Segretaion of obsolete inventory & keeping them separatly

Disposal of old records & logbooks

Two lab buildings, separated by 100 meters

Possibility for Improvement-Vindhachal In My work-Group Reporting same data to different bosses; Writing unnecessary in log books Inventory too high-few items Waiting for inspection work Re-inspection of radiagraphy films Unnecesary logging of data Waiting for instruction from ABT ctrl room Reporting to many persons Overlapping of job distribution Replaced items not put at right place Scrap removal Misuse of high capacity-Hydra for Fork lift Waiting for isolation Waiting for System to come Standardisation of service/matl spec. No centralised location for Brochures No planning for spares Beyond My work-Group Waiting for materials WAITING FOR CLEARANCE SAP-ERP not user frindly, too long Inventory ctrl – some high /low Decision for scrapping of items –delayed approval Repetiion in preparation of proposals No suitable workplace not allotted No sufficient PCs Improper trg-lateral induction Coal dust/water –leakage from CHP conveyer belts

In My work-Group

Reporting same data to different bosses;

Writing unnecessary in log books

Inventory too high-few items

Waiting for inspection work

Re-inspection of radiagraphy films

Unnecesary logging of data

Waiting for instruction from ABT ctrl room

Reporting to many persons

Overlapping of job distribution

Replaced items not put at right place

Scrap removal

Misuse of high capacity-Hydra for Fork lift

Waiting for isolation

Waiting for System to come

Standardisation of service/matl spec.

No centralised location for Brochures

No planning for spares

Beyond My work-Group

Waiting for materials

WAITING FOR CLEARANCE

SAP-ERP not user frindly, too long

Inventory ctrl – some high /low

Decision for scrapping of items –delayed approval

Repetiion in preparation of proposals

No suitable workplace not allotted

No sufficient PCs

Improper trg-lateral induction

Coal dust/water –leakage from CHP conveyer belts

Possibility for Improvement In My work-Group Beyond My work-Group

MUDA Overview For the participants: Which areas in your office will get benefit out of MUDA elimination? ---- ---- ----

For the participants:

Which areas in your office will get benefit out of MUDA elimination?

----

----

----

Waste Elimination Value Added time : What the customer is willing to pay for Tea Breaks, Lunches, Training Education, Non Value added work Unnecessary motion Material handling Waiting time Rework/ scrape Unnecessary part processing Excess inventory Over Production` 37% 13% 50% 13% 89%

Non Value added work

Unnecessary motion

Material handling

Waiting time

Rework/ scrape

Unnecessary part

processing

Excess inventory

Over Production`

Find the Root Cause - Asking ‘WHY’ for 5 times & - 5W 1H How to eliminate?

Excessive time spent On correspondence Too Many Errors Too Many Reviews Typists Need More Training Need Better Equipment Standards Not Clear Fear of Top Boss Why – Why diagram

TYPICAL FORMAT FOR WHY WHY ANALYSIS

EXAMPLE

CATEGORISE JH – AUTONOMUS MAINTENANCE PM – PREVENTIVE MAINTENANCE / PREVENTIVE MEDICINE DESIGN – CHANGE IN THE DESIGN E & T Skill – EDUCATION AND TRAINING

 

 

Six Honest Serving Man Rudyard Kipling , 1865 -1936 from "The Elephant's Child" in Just So Stories I keep six honest serving men (They taught me all I knew ); Their names are What and Why and When And How and Where and Who . I send them over land and sea, I send them east and west; But after they have worked for me, I give them all a rest.

Rudyard Kipling , 1865 -1936

from "The Elephant's Child" in Just So Stories

I keep six honest serving men

(They taught me all I knew );

Their names are What and Why and When

And How and Where and Who .

I send them over land and sea,

I send them east and west;

But after they have worked for me,

I give them all a rest.

5 W 1 H of MUDA

Can 5 S become MUDA S S S S S When attitude is wrong.

3 M MUDA (Waste) MURI ( Strain / Over burden ) MURA (Unevenness ) Eliminating 3 M

MUDA (Waste)

MURI ( Strain /

Over burden )

MURA (Unevenness )

MURI : Overburdon

MURI : Overburdon

Identifying MURI MURI = Physical Strain, Overbourden Placing of excessive demands on People M/cs, Production equipment. Muri is caused by the respect of unsuited standards. Bend to work? Push hard? Lift weight? Repeat tiring action? Wasteful walk?

Placing of excessive demands on

People

M/cs, Production equipment.

Bend to work?

Push hard?

Lift weight?

Repeat tiring action?

Wasteful walk?

Standing posture Keep your spinal column aligned in its natural curves. Prop one foot up on a stool to reduce stress in your lower back.

Keep your spinal column aligned in its natural curves.

Prop one foot up on a stool to reduce stress in your lower back.

With all the office paperwork now easy to find, in labelled areas, and on the wall for ease of Team access, the results were dramatic! Within 4 weeks SOLAS recorded NO misplaced pieces of paperwork.

Eliminating MURA MURA is Inconsistent or Irregular or Uneven use of person or M/c. Happens sometimes? Happens some places Happens to some people One side is ok; the other side is not ok

MURA is

Inconsistent or

Irregular or

Uneven use of person or M/c.

MURA results when employees are told to work like crazy early in the morning only to stand around and do nothing late in the day.

Examples of MUDA, MURI, MURA How best to move 6000 kg load with a forklift having a capacity of 2000 kg?. The choices are 6 trips @ 1000 kg, 2 trips @ 2000 kg + 2 trips at 1000kg, 2 trips @ 3000 kg.  What the individual choices indicate?

How best to move 6000 kg load with a forklift having a capacity of 2000 kg?.

The choices are

6 trips @ 1000 kg,

2 trips @ 2000 kg + 2 trips at 1000kg,

2 trips @ 3000 kg. 

What the individual choices indicate?

'Understand the different types of waste and get into the habit of pointing out examples of them every day.'

Continuous Improvement Cycle Waste Exposed Find Root Cause Implement Improvement Standardize Work

It is the continuous elimination of waste. Continuous Improvement Taking New Problem Solving it Standardizing it

 

How other’s Do it? GE’s “ Workout ” Programme “ Work out” - taking unnecessary work out of the system; Groups of 30 – 100 employees share their views on Business & Bureaucracy Every business units to have 100s of Workouts 2-3 days duration Outside facilitators leads the discussion Ideas presented and decisions have to be taken on the spot OR by a defined date Decisions have to be given for atleast 75 % ideas

GE’s “ Workout ” Programme

“ Work out” - taking unnecessary work out of the system;

Groups of 30 – 100 employees share their views on Business & Bureaucracy

Every business units to have 100s of Workouts

2-3 days duration

Outside facilitators leads the discussion

Ideas presented and decisions have to be taken on the spot OR by a defined date

Decisions have to be given for atleast 75 % ideas

How other’s Do it? Production Production Capability Japanese Organisation

Japanese Organisation

 

Average Organization= Great Organization + MUDA Great Organization = Average Organization - MUDA Success & Happiness Equations Humans= God + MUDA God = Humans - MUDA Good to Great Journey Happiness Journey

Average Organization= Great Organization + MUDA

Great Organization = Average Organization - MUDA

Quality doesn’t happen by Accident, It has to be Planned

Business Process Material Inputs Raw materials Consumables Utilities Human Efforts Knowledge * Skill * Attitude * Time Facilities *Equipment * Technology * Infrastructure * Systems Products Bye-products Waste Information Information Production & Delivery Schedules Process

Material Inputs

Raw materials

Consumables

Utilities

Human Efforts

Knowledge * Skill

* Attitude * Time

Information

Production &

Delivery Schedules

Mura means Inconsistencies in the system Happens sometimes Happens some places Happens to some people One side is ok; the other side is not ok Muri is Physical Strain   Bend to work?   Push hard? Lift weight? Repeat tiring action? Wasteful walk?

It’s worth mentioning the cause and effect relationship of these three. When there is mura (variability or unevenness) you do muri (overburden) causing muda (waste). A simple example is when you customer demand varies (mura), and you try to meet this customer demand too closely even though your system is not set up to do this (muri), and you either have idle capacity or excessive inventory (muda). It’s easy to come up with other examples. This is highly relevant to the theme of this blog, as it suggests that the source of waste (muda) is variability (mura) and our effort to forcibly close the gap (muri) between what is and what we want it to be.

It’s worth mentioning the cause and effect relationship of these three. When there is mura (variability or unevenness) you do muri (overburden) causing muda (waste).

A simple example is when you customer demand varies (mura), and you try to meet this customer demand too closely even though your system is not set up to do this (muri), and you either have idle capacity or excessive inventory (muda).

It’s easy to come up with other examples.

This is highly relevant to the theme of this blog, as it suggests that the source of waste (muda) is variability (mura) and our effort to forcibly close the gap (muri) between what is and what we want it to be.

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