As early as in the 1950s, Taichii Ohno (Toyota Motor Company) identified and described in detail 7 Main Types of Waste (Japanese word: MUDA). In LEAN methodology, yet another type of waste appeared in the 1990s, which is unused Human Intellect, or the human potential for streamlining. What purpose did Toyota pursue? By labelling each type of ineffectiveness and identification of places where they can be hidden. This resulted in an opportunity for taking up effective and system-based actions to fight MUDA. Examples of waste, perfectly described, typical places in which it may occur and its evident consequences .This causes rising awareness among both the management and direct labor, obviously on condition that all are appropriately trained in this field. Module 14 of LEAN Academy provides an excellent opportunity to use this awareness to improve the skills of effective identifying well-hidden MUDA. Identifying its sources and understanding why it gets rooted so easily in our processes. This knowledge is absolutely indispensable for implementing effective methods of loss elimination as well as for improving the quality of standards and discipline.

1. © Lean & Mean Consulting. All rights reserved. 2015© Lean & Mean Consulting. All rights reserved. 2016
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8 Types of Waste
Identifying & Eliminating MUDA
World-Class Standards & Best Practices of Operational Excellence

2. World-Class Standards & Best Practices of Operational Excellence
© Lean & Mean Consulting. All rights reserved. 2016
LEAN Management Academy - Outline
Knowledge & Expertise / Editable Training Presentations / 16 Modules

3. 3
Contents
What Is Waste?
 Paradigms, Continuous Improvement Principles
a) Value, Non-Value Added, NVA But Necessary
b) Rules to Determine Value Added Activities
 How Does Waste Take Root?
 Benefits Of Identifying and Eliminating Waste
a) Relationship of Waste and KPI’s
 8 Types Of Waste (Manufacturing)
a) Definition And Examples Of Each Type Of Waste
b) Causes Of Each Type Of Waste
c) How To Eliminate The Waste

4. 1
Identifying & Eliminating MUDA
Module. 14

5. 5
Paradigm: A set of rules and regulations that establish boundaries and help solve problems
within the boundaries. Paradigms dramatically affect our judgment and our decision making by
influencing our perceptions.
.
Paradigm Effect: We constantly select from the world of data that best fits our rules and
regulations and try to ignore the rest. What may be perfectly obvious to a person with one
paradigm may be totally imperceptible to someone with a different paradigm
.Paradigm Paralysis: The belief that there is and can only be one way to do things, and there
is no other or better way. We lock ourselves into one specific way of solving problems.
Going Back to Zero Rule: When a paradigm shifts, everyone goes back to zero. Your past
success guarantees nothing in the future of paradigms.
Paradigm Example:
Driver side sliding door No driver side sliding door
Paradigms

6. 6
“Everything that can be invented has been invented.”
-Charles H. Duell, Director, US Patent Office, 1899
“Who the wants to hear actors talk.”
-Harry M. Warner, Warner Bros. Pictures, 1927
“Heavier than air flying machines are impossible.”
-Lord Kelvin, President, Royal Society, 1895
Challenge the Paradigm

7. 7
What Is Value-Added?
Value-Added:
 Is any activity that increases the market, form, or function
of the product/service: the activity must be done right the
first time
 These are things the customer is willing to pay for:
Customer must recognize the value!
 An activity that transforms or changes raw material or
information to meet customer requirements: the product
must physically change during the process

8. 8
Traditional Distribution Of Activities
Non Value
Added
(Necessary)
38%
Value Added
2%
Non-Value
Added (Waste)
60%

9. VA activities NVA activities
• Moving Material to a workstation
• Processing / assembly
• Load, Unload, Start
• Batching in between operations
• Inspecting
• Shipping
• Batching in between operations
• …
• Moving parts between
workstations
• Restocking (by operators)
• Changeover / setup
• Waiting / idling
• Reworking
• Excessive inspecting
• …

10. 10
Waste Takes Root When We Accept Temporary
Improvement
A Problem
Occurs
Evading the problem
“For the time being, let’s…”
Talking about, not doing
“Let’s find ways
to work around it.”
A habit of mind
“We’ve always done it
like this.”
Justification for doing it…
“No one has any objection
to the way we do this now.”
Provisional solution
(a stopgap)
Ask “why” until root cause is
understood
Real
Improvement
Apply best solution
Problem is solved
Standardize and Communicate
Solution

11. 11
Relationship Of Waste And KPI’s Examples
Examples Of KPI’s Examples Of Type Of Wastes
Scrap Defects, over-processing
Freight Transportation
Inventory Over-production, motion, waiting, people
Sorting, Containment Defects
Overtime Defects, waiting, over-production
Lean People
Launch People, defects, over-production, over-processing
etc. etc.

12. 1a
Identifying & Eliminating MUDA
Module. 14

13. 13
8 Types Of Waste (Manufacturing)
Motion
Extra physical /
mental motion that
doesn’t add value
Waste
Waiting
Employees waiting
for another process
or information
Over
production
Producing more
than what the
customer needs
Intellect
Not using
employees full
intellectual
contribution
Over
processing
Adding excess value
when the customer
does not require it
Defects
Reprocessing, or
correcting work Inventory
Building and storing
products the
customer has not
ordered
Transportation
Moving from one
place to another

14. 14
Transportation
 More inventory naturally leads to more
transportation
 Transportation refers to any
conveyance of materials, parts,
assembly parts, or finished goods, from
one place to another for any reason
 Transporting parts and materials
around the plant
 Material handling is one part of
transportation

15. 15
Motion Waste
 Any movement of people or machines
that does not add value to the product
or service
 Motion waste is similar to processing
waste but relates more closely to the
discrete movements of operators
themselves
 Motion waste refers to movement that
is not really needed to perform an
operation

16. 16
Causes Of Motion Waste
Isolated operations:
 Poor work layout
 Lack of training
 Underdeveloped skills
 Bad parts presentation
Instability in operations:
 Increase in staff or worker hours
 Working ahead

17. 17
Re-stocking & walking Bending Pick-up / Return
Risk of a hit Crouching Reach up high!
Examples Of Motion Waste

18. 18
How To Eliminate Motion Waste
Gradually switch to flow production:
 Create U-shaped cell layout of equipment
 Make standardization thorough all operations
 Increase training
 Increase operator’s motion awareness
 Improve part presentation based on operators input
 Use gravity to our advantage
 Use both hands at the same time

19. 19
How To Eliminate Motion Waste
Example: Ergonomics Ace
• Observation-based tool (qualitative)
• Identify ergonomic issues and improvements
• 10 easy to remember items
• Useful as Posture technique coaching tool
• Check For…
– 4 simple solution strategies
– Remember Ergonomics-Manufacturing
System Wastes

20. 20
8 Wastes Summary
 Transportation
 Inventory
 Motion
 Intellect (Not Utilizing)
 Waiting
 Over-production
 Over-processing
 Defects

21. 21
Eyes For Waste
“Just do it”
Others
Visible Not Visible
Be Open
Minded
Help others
to see the
opportunity
Breakthrough
opportunity
You
Visible
Not Visible
VA-NVA/Safety Observation Sheet

22. 2
Identifying & Eliminating MUDA
Module. 14

23. 23
The
Three
MUs
Meaning in
English
Explanation
(using example of Capacity versus Load)
Muda • Waste • Capacity exceeds Load
Mura
• Unevenness
• Inconsistency
• Variation
• Capacity sometimes
exceeds the Load
• Load sometimes
exceeds the Capacity
Muri
• Overburden
• Irrationality
• Load exceeds Capacity
Explanation of the Three MUs

24. 24
Classifications Of Waste
5M&QS Waste Classification
Material Waste
• Of parts
• Of bolts
• Of welds
• Of function
• Of Retention
Method Waste
• Lots production
• Inventory
• Conveyance
• Pick up and
setting down work
pieces
Man (People
Related Waste)
• Walking
• Watching
• Searching
• Operating
• Invisible
Management Waste
• Materials
• Meetings
• Management/Control
• Communications
Safety Waste
• In disaster
prevention
methods
• In fixing defects
• “Safety first”
requires removing
all waste that can
lead to accidents
and/or injuries
Machine Waste
• Of large machines
• Of general purpose
machines
• Of conveyors
• Of machines that
“process air”
• Created by
breakdowns
• In machine handling
Quality Waste
• In making
defective goods
• In fixing defects
• In making
mistakes
• In Inspection
• In quality control

25. 25
Classifications Of Waste
Production Factor Waste Classification
Considering the “flow of goods” in production as the basis for
finding and eliminating waste.
• Retention
Stopping flow of goods without adding any value to them. This
type of waste creates inventory in different forms: warehouse
and in-process inventory.
• Conveyance
Occurrence whenever goods are being moved without having any
value added.

26. 26
Classifications Of Waste
• Processing
Related to altering and/or attaching parts or material
• Inspection
Identification and elimination of defectives from the
production flow.

27. 3
Identifying & Eliminating MUDA
Module. 14

28. 28
1. Using the back door
2. Bringing latent waste to the
surface
3. Analyzing current conditions
Three Approaches To Discover Waste

29. 29
1. Look at the three real things:
 The factory
 The facts
 Work-in-process
2. Ask “What?”
 Ask what the operation is about
3. Ask “Why?”
 Ask why the operation is necessary
Five Key Points For Discovering Waste Through
The Back Door
4. Everything that is not work is
waste
 Once you have found out what the
operation’s essential function is,
you can properly identify as waste
everything in the operation that
does not directly execute that
function
5. Ask “Why?” at least five times
to find root causes
 Ask why at least five times
concerning each wasteful part of
the operation. This will lead you to
the real waste
Draft an improvement plan. Ask “How?”

30. 30
Analyzing Current Conditions
 There are many tools you can use to analyze current
conditions quickly and effectively.
 In this section, a brief outline of three of the following tools
are presented:
 Value Stream Mapping
 Value-Added Flow Chart
 Flow Analysis Chart

31. 4
Identifying & Eliminating MUDA
Module. 14

32. 32
1. Adopting the necessary attitude for removing waste
2. Removing waste in the movement of goods
3. Removing waste in the actions of people
4. Removing waste in the way people, goods and machines
are combined
Guidelines for Removing Waste

33. Removing
Waste in the
Way People,
Goods &
Machines Are
Combined
Identifying & Eliminating MUDA
Module. 14

34. 34
Removing Waste in the Way People,
Goods & Machines Are Combined
 Remove anything that does not harmonize with production
flow by designing the combination of people, materials and
machines so that they work in optimum relationship to each
other
 There are three ways that people and machines can work
together
 Serial
 Partially parallel
 Parallel

35. 35
Serial Operations
 In serial operation, the worker and machine take
turns adding value to the materials
Worker’s operations Machine’s operations
30 seconds 40 seconds
Completion time:
70 seconds

36. 36
Partially Parallel Operations
 In a partially parallel operation, worker activity and
machine activity overlap:
Worker’s operations
Machine’s operations
30 seconds
40 seconds
Completion time:
50 seconds

37. 37
Parallel Operations
 In parallel operation, worker and machine work side
by side at the same time
Worker’s operations
Machine’s operations
30 seconds
40 seconds
Completion time:
40 seconds

38. 5
Identifying & Eliminating MUDA
Module. 14

39. 39
How to Prevent Waste
 There are six important methods for maintaining a
waste-free production environment:
 Standardization
 Visual controls
 Auditory controls
 5W + 2H

40. 40
Standardization
 Standards are required for:
 Machines
 Operations
 Defining normal and
abnormal conditions
 Clerical procedures
 Procurement

41. 41
Standardization

42. 42
Visual & Auditory Controls
 In a factory, you need to be responsive to changes in the
environment so that problems can be quickly addressed:

43. 43
Visual & Auditory Controls
 There are six visual and auditory
tools you can use:
 Red-tagging
 Signboards
 Outlining
 Andons
 Kanban
 Pitch and inspection buzzers

44. 44
5W & 2H
 Remember three essentials for fact-finding:
 Go to where the problem occurred
 See the problem first-hand
 Confirm the facts based on your own observations
 Be a walker and an observer:
 Supervisors and managers must continually walk through the factory to
see that standards are being followed and to practice seeing waste
 Operators need to continually examine their own operations and be
alert for new problems and new ideas

45. 45
Waste Finding Format Examples
Process Name
Transportation
Inventory
Motion
People
Waiting
Overproduction
Overprocessing
Defects
WasteMagnitud
ImprovementRanking
Improvement Ideas
WASTE FINDING CHECKLIST

46. 46© Lean & Mean Consulting. All rights reserved. 2016