M U D A Ellimination
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Transcript of M U D A Ellimination
Welcome to 3rd 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/EmployeeAir-India 664 153Singapore airlines 341 441Air France 277 426Emirates 267 703British Airway 227 573Lufthansa 185 714United Air lines 174 953Japanese Airlines 146 1589Industry 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
Business Process
Organization’s Value Stream
Process-1 V
W
Process-2 V
W
Process-3 V
W
Process-4
W
ProductVInput
It is a network of different Business Processes.
V: Value added product/servicesW: Wasteful product / practices/services that does not add value
Value Stream of a Power Generation Co.
Customer
BoilerBoiler
Su
pp
l i ers
Water Water
FuelGenerat
orPower Grid
Service DepartmentsService 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
Integrated Quality
QualityQuality
CustomerRequirements
ProcessCapability
CostCost
Selling Price
Production Cost
DeliveryDelivery
Customer Schedule
Process Speed
Supplier
Customer
Waste : the value destroyers
QualityQuality
CustomerRequirements
ProcessCapability
CostCost
Selling Price
Production Cost
DeliveryDelivery
Customer Schedule
Process Speed
Supplier
Customer
DefectsDefects
DelaysDelays
Resource Waste
Resource Waste
OBJECTIVES of Improvement Initiatives
OBJECTIVES of Improvement Initiatives
Improved Profitability
Enhanced Competitiveness
QU
ALIT
Y
Red
uce D
efe
cts
CO
ST
eff
ecti
ven
ess
Red
uce W
aste
D
ELIV
ER
Y
Red
uce D
ela
ys
Improvement Initiatives
Increasing Profit by Increasing Price
Increasing Profit by reducing Cost
Changing the performance level
Current State
Future State
Valu
eW
aste
Val u
eW
aste
Perf
orm
ance
le
vel
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?
Unnecessary Motions
Waiting for work and materials
Transportations
Overproduction
Processing
Inventories / Unnecessary WIP
Corrective operation
7 Seven MUDA [Wastes]
MUDA of Motion [1/7]
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]
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]
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]
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]
MUDA of Process [5/7]
No more MUDA of Process
MUDA of Process
No MUDA of Process
MUDA of Process
1. Using more expensive equipment or tools where simpler ones would suffice.
2. Having meetings that are not needed.
3. Having people at meetings that are not required.
4. 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
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 QUALITY1’ST
Inventory is a sign or symptom of waste somewhere.
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
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
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
Traditional Practices
Some More Examples
I wish everybody ware keep their things in orderly
fashion.
1. Each item traced easily. 2. Unwanted items
removed through SEIRI.
3. Missing items detected immediately.
4. 15% search time eliminated, thus net working time increased.
5. Prevents frustration & distress.
Start it at your own desk first !
Well arranged drawer ensures easy visibility & simpler monitoring.
MUDA is eliminated or Generated?
Clean As you
Go
15
14
13
12
Boss’s Cabin
10
9
8
7
6
5
4
32 1
Secretary’s Desk
MUDA of ??
DESIRED LAYOUT
13 12
MD’s Cabin
10 9
8
7654321
DESIRED LAYOUT TO BE MADE USING ALL VISUALS, ALTERNATIVES CAN BE BRAINSTORMED WITH COLLEAGUES
11Secretary’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?
1 2 3 4 5 6 7 8 9 10
• 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?
1 2 3 4 5 6 7 8 9 10
MUDA Exercise
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)
Possibility for Improvement-Singrauli
In My work-Group1. Filiing system- info upkeep, system2. Inventry unbalance3. Incorrect preparation of scope of
work & defects in raising indents4. Repeat sampling & testing
Beyond My work-Group1. Segretaion of obsolete inventory &
keeping them separatly2. Disposal of old records & logbooks3. Two lab buildings, separated by
100 meters
Possibility for Improvement-Vindhachal
In My work-Group1. Reporting same data to different bosses;2. Writing unnecessary in log books3. Inventory too high-few items4. Waiting for inspection work5. Re-inspection of radiagraphy films6. Unnecesary logging of data7. Waiting for instruction from ABT ctrl room8. Reporting to many persons9. Overlapping of job distribution10. Replaced items not put at right place11. Scrap removal12. Misuse of high capacity-Hydra for Fork lift13. Waiting for isolation14. Waiting for System to come15. Standardisation of service/matl spec.16. No centralised location for Brochures17. No planning for spares
Beyond My work-Group1. Waiting for materials2. WAITING FOR CLEARANCE3. SAP-ERP not user frindly, too
long4. Inventory ctrl – some high /low5. Decision for scrapping of items
–delayed approval6. Repetiion in preparation of
proposals7. No suitable workplace not
allotted8. No sufficient PCs9. Improper trg-lateral induction10. 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?– ----– ----– ----
•
Value Added time: What the customer is willing to pay for
Tea Breaks, Lunches, TrainingEducation,
Waste Elimination
37%
13%13%
50%Non Value added work•Unnecessary motion
•Material handling
•Waiting time
•Rework/ scrape
•Unnecessary part
processing
•Excess inventory
•Over Production`
13%13%
89%89%
Find the Root Cause
- Asking ‘WHY’ for 5 times
&
- 5W 1H
How to eliminate?
Excessive time spentOn correspondence
Too Many Errors Too Many Reviews
Typists Need More Training
Need Better Equipment
StandardsNot Clear
Fear ofTop Boss
Why – Why diagram
TY
PIC
AL F
OR
MA
T F
OR
WH
Y W
HY
AN
ALY
SIS
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 -1936from "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
MURI : Overburdon
MURI : Overburdon
Identifying MURI
MURI = Physical Strain, Overbourden
Placing of excessive demands onPeopleM/cs, Production equipment.
Muri is caused by the respect of unsuited
standards.
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.
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 orUneven 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 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 areA. 6 trips @ 1000 kg, B. 2 trips @ 2000 kg + 2 trips at 1000kg, C. 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.'
Waste Exposed
Find RootCause
ImplementImprovement
Standardize Work
Continuous Improvement Cycle
It is the continuous elimination of waste.
Continuous Improvement
Taking New Problem
Solving it
Sta
ndar
diz
ing 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
How other’s Do it?
Production
Production Capability
•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
Quality doesn’t happen by Accident,
It has to be Planned
Mura means Inconsistencies in the system Happens sometimes Happens some places Happens to some people One side is ok; the other side is not okMuri is Physical Strain Bend to work? Push hard? Lift weight? Repeat tiring action? Wasteful walk?
1.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).2.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). 3.It’s easy to come up with other examples.4.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.