M U D A Ellimination


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  • M U D A Ellimination

    1. 1. Welcome to 3 rd Day of Understanding CoPQ & Identifying MUDA; Feb 5-7, 08
    2. 2. Feb 7, 2008
    3. 3. 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
    4. 4. Changed Business Scenario I want my Japanese out-fit not to out run the lion, but to be one step ahead of you .
    5. 5. 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
    6. 6. Can you please do an hour’s worth job in a day! Taiichi Ohno Non-value activities adds up to the cost
    7. 7. What We do in a Business Process? <ul><li>Adding Value through a </li></ul><ul><li>Value-Added activity </li></ul><ul><li>Or </li></ul><ul><li>Generating Waste or MUDA through a </li></ul><ul><li>Non-Value-Added activity </li></ul>
    8. 8. Business Process
    9. 9. 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
    10. 10. Value Stream of a Power Generation Co. C u stomer Boiler Value Stream Suppliers Water Fuel Generator Power Grid Service Departments
    11. 11. Economic Value of Waste <ul><li>Every business activity absorbs resources and every resource has a cost </li></ul><ul><li>Every waste has a cost , and that is direct loss to the company. </li></ul><ul><li>Economic value of waste in a process industry are in the range of 10 -35% of annual turnover </li></ul>
    12. 12. Integrated Quality Quality Customer Requirements Process Capability Cost Selling Price Production Cost Delivery Customer Schedule Process Speed Supplier Customer
    13. 13. 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
    14. 14. OBJECTIVES of Improvement Initiatives
    15. 15. OBJECTIVES of Improvement Initiatives Improved Profitability Enhanced Competitiveness QUALITY Reduce Defects COST effectiveness Reduce Waste DELIVERY Reduce Delays Improvement Initiatives
    16. 16. Increasing Profit by Increasing Price
    17. 17. Increasing Profit by reducing Cost
    18. 18. Changing the performance level Current State Future State Value Waste Value Waste Performance level Time frame Ideal State
    19. 19. What is Lean?
    20. 20. Lean is not New
    21. 22. <ul><li>Employees are very busy and working hard, but nothing seems to be getting done; </li></ul><ul><li>Employees (good ones) are being pulled in many directions; </li></ul><ul><li>Activities that add little value to the organization but absorb organizational resources ; </li></ul><ul><li>Rework; </li></ul><ul><li>Emergencies and fire-fighting ; </li></ul><ul><li>Busy work schedules; </li></ul>What do all these items have in common?
    22. 23. <ul><li>Employees are very busy and working hard, but nothing seems to be getting done </li></ul><ul><li>Emergencies and fire-fighting </li></ul><ul><li>Busy work schedules </li></ul><ul><li>Employees are (good ones) being pulled in many directions </li></ul><ul><li>Outdated processes that we do, &quot;because we've done them this way for many years&quot; </li></ul><ul><li>Activities that simply add no value to the organization </li></ul><ul><li>Changing project scope will into the project </li></ul><ul><li>Projects that add little value to the organization but absorb organizational resources </li></ul><ul><li>Projects that don't finish </li></ul><ul><li>False starts on projects or initiatives </li></ul><ul><li>Rework </li></ul><ul><li>Constantly changing project scope </li></ul>What do all these items have in common?
    23. 25.  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]
    24. 26. Eliminating Muda <ul><li>Motion: using unnecessary movement and energy used to perform tasks. </li></ul><ul><li>Waiting : workers rendered idle by excessive set- up or equipment breakdowns. </li></ul><ul><li>Transport : poor timing; too frequent or infrequent movement of goods and deliveries. </li></ul><ul><li>Overproduction : Producing items not immediately needed. </li></ul><ul><li>Processing : imposing inefficient and unnecessary tasks; failing to synchronize systems. </li></ul><ul><li>Inventory : stocking items not immediately needed. </li></ul><ul><li>Correction/Repair : Producing defective products. </li></ul>
    25. 27. MUDA of Motion [1/7] <ul><li>using unnecessary movement and energy used to perform tasks. </li></ul>
    26. 28. MUDA of Motion
    27. 29. MUDA of Motion
    28. 30. <ul><li>Movement that does not add value: </li></ul><ul><ul><li>Searching for files </li></ul></ul><ul><ul><li>Extra clicks or key strokes </li></ul></ul><ul><ul><li>Clearing away files on the desk </li></ul></ul><ul><ul><li>Gathering information </li></ul></ul><ul><ul><li>Looking through manuals and catalogs </li></ul></ul><ul><ul><li>Handling paperwork </li></ul></ul>MUDA of Motion [1/7]
    29. 31. MUDA of Motion Solution of MUDA Motion?
    30. 32. What She is doing?
    31. 33. What they are doing?
    32. 34. MUDA of Waiting [2/7]
    33. 35. MUDA of Waiting
    34. 36. Waiting & Wasting Time
    35. 37. <ul><li>Idle time created when material, information, people or equipment is not ready. </li></ul><ul><li>Waiting for: </li></ul><ul><ul><li>Faxes </li></ul></ul><ul><ul><li>The system to come back </li></ul></ul><ul><ul><li>Copier machine </li></ul></ul><ul><ul><li>Customer response </li></ul></ul><ul><ul><li>A handed off file to come back </li></ul></ul>MUDA of Waiting [2/7]
    36. 38. MUDA of Transport [3/7] I am more expensive since raw material is coming from a far off place.
    37. 39. <ul><li>Movement of information that does not add value: </li></ul><ul><ul><li>Carrying documents to and fro from shared equipment </li></ul></ul><ul><ul><li>Taking files to another person </li></ul></ul><ul><ul><li>Going to get signatures </li></ul></ul>MUDA of Transport [3/7]
    38. 40. MUDA of Over production [4/7] “ the more, the merrier
    39. 41. <ul><li>Generating more information than the customer needs right now: </li></ul><ul><ul><li>More information than the customer needs </li></ul></ul><ul><ul><li>Creating reports no one reads </li></ul></ul><ul><ul><li>Making extra copies </li></ul></ul><ul><ul><li>More information than the next process needs </li></ul></ul>MUDA of Over production [4/7]
    40. 42. MUDA of Process [5/7] No more MUDA of Process
    41. 43. MUDA of Process No MUDA of Process
    42. 44. MUDA of Process <ul><li>Using more expensive equipment or tools where simpler ones would suffice. </li></ul><ul><li>Having meetings that are not needed. </li></ul><ul><li>Having people at meetings that are not required. </li></ul><ul><li>Agenda points, not to be included; </li></ul>
    43. 45. <ul><li>Efforts that create no value from the customer viewpoint: </li></ul><ul><ul><li>Creating reports </li></ul></ul><ul><ul><li>Repeated manual entry of data </li></ul></ul><ul><ul><li>Excessive paperwork </li></ul></ul><ul><ul><li>Duplicacy of work </li></ul></ul><ul><ul><li>Use of outdated standard forms </li></ul></ul><ul><ul><li>Use of inappropriate software </li></ul></ul>MUDA of Process
    44. 46. MUDA of Inventory [6/7]
    45. 47. <ul><li>More information, project, material on hand than the customer needs right now: </li></ul><ul><ul><li>Files waiting to be worked on </li></ul></ul><ul><ul><li>Open projects </li></ul></ul><ul><ul><li>Office supplies </li></ul></ul><ul><ul><li>E-mails waiting to be read </li></ul></ul><ul><ul><li>Unused records in the database </li></ul></ul>QUALITY 1’ST
    46. 48. Inventory is a sign or symptom of waste somewhere.
    47. 49. <ul><li>Why Work Smarter? </li></ul><ul><li>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 . </li></ul><ul><li>The symptoms of working smarter include: </li></ul><ul><ul><li>Going home on time to see your family </li></ul></ul><ul><ul><li>Completing all assigned work and meeting your deadlines </li></ul></ul><ul><ul><li>Focusing on one project at a time </li></ul></ul><ul><ul><li>Getting your work done right the first time </li></ul></ul><ul><ul><li>Working only on value added activities </li></ul></ul><ul><ul><li>Getting more done with less resources </li></ul></ul>
    48. 50. MUDA of Correction [7/7]
    49. 51. Why Repair/Replacement in Warranty period be a MUDA?
    50. 52. Rule of 10 <ul><li>Prevention:Correction:Failure </li></ul><ul><ul><li>= 1:10:100 </li></ul></ul>100 10 1
    51. 53. Strategy Premise <ul><li>The Strategy is based on the premise that: </li></ul><ul><li>For each failure there is a root cause. </li></ul><ul><li>Causes are preventable. </li></ul><ul><li>Prevention is always cheaper. </li></ul>ACQC, Principles of Quality Costs, 1986 Cost of uality
    52. 54. MUDA of Correction [7/7]
    53. 55. MUDA of Correction [7/7] Making a Swing!!
    54. 56. Making a Swing
    55. 57. Making a Swing
    56. 58. Making a Swing
    57. 59. Making a Swing
    58. 60. Making a Swing
    59. 61. <ul><li>Work that contains errors, rework, mistakes or lacks something necessary: </li></ul><ul><ul><li>Data entry error </li></ul></ul><ul><ul><li>Pricing error </li></ul></ul><ul><ul><li>Missing information </li></ul></ul><ul><ul><li>Missed specifications </li></ul></ul><ul><ul><li>Lost records </li></ul></ul><ul><ul><li>Rework </li></ul></ul><ul><ul><li>Rescheduling meetings </li></ul></ul>7/7 Wastes of Information
    60. 62. Traditional Practices
    61. 63. Some More Examples
    62. 66. I wish everybody ware keep their things in orderly fashion.
    63. 69. Start it at your own desk first !   Well arranged drawer ensures easy visibility & simpler monitoring.                                                                                                                                                                            <ul><li>Each item traced easily. </li></ul><ul><li>Unwanted items removed through SEIRI. </li></ul><ul><li>Missing items detected immediately. </li></ul><ul><li>15% search time eliminated, thus net working time increased. </li></ul><ul><li>Prevents frustration & distress. </li></ul>
    64. 70. MUDA is eliminated or Generated?
    65. 72. Clean As you Go
    66. 73. 15 14 13 12 Boss’s Cabin 10 9 8 7 6 5 4 3 2 1 Secretary’s Desk MUDA of ??
    67. 74. 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
    68. 75. MUDA Increasing or Decreasing
    69. 76. Which MUDA is getting eliminated
    70. 77. Which MUDA is getting eliminated
    71. 79. MUDA Exercise <ul><li>In a scale of 1 to 10, with 1 being Poor and 10 being Excellent/ near World Class, where would you rate Vindhyachal presently? </li></ul>10 9 8 7 6 5 4 3 2 1
    72. 80. <ul><li> </li></ul><ul><li>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? </li></ul>MUDA Exercise 10 9 8 7 6 5 4 3 2 1
    73. 81. MUDA Exercise <ul><li>Bring out, in groups, the MUDAs </li></ul><ul><li>happening around you (not more than 5); </li></ul><ul><li>Classify them into two categories; which can be handled by your workgroup and which are beyond </li></ul><ul><li>Expected Saving </li></ul><ul><li>(money, energy, frustrations etc) </li></ul>
    74. 82. Possibility for Improvement-Singrauli <ul><li>In My work-Group </li></ul><ul><li>Filiing system- info upkeep, system </li></ul><ul><li>Inventry unbalance </li></ul><ul><li>Incorrect preparation of scope of work & defects in raising indents </li></ul><ul><li>Repeat sampling & testing </li></ul><ul><li>Beyond My work-Group </li></ul><ul><li>Segretaion of obsolete inventory & keeping them separatly </li></ul><ul><li>Disposal of old records & logbooks </li></ul><ul><li>Two lab buildings, separated by 100 meters </li></ul>
    75. 83. Possibility for Improvement-Vindhachal <ul><li>In My work-Group </li></ul><ul><li>Reporting same data to different bosses; </li></ul><ul><li>Writing unnecessary in log books </li></ul><ul><li>Inventory too high-few items </li></ul><ul><li>Waiting for inspection work </li></ul><ul><li>Re-inspection of radiagraphy films </li></ul><ul><li>Unnecesary logging of data </li></ul><ul><li>Waiting for instruction from ABT ctrl room </li></ul><ul><li>Reporting to many persons </li></ul><ul><li>Overlapping of job distribution </li></ul><ul><li>Replaced items not put at right place </li></ul><ul><li>Scrap removal </li></ul><ul><li>Misuse of high capacity-Hydra for Fork lift </li></ul><ul><li>Waiting for isolation </li></ul><ul><li>Waiting for System to come </li></ul><ul><li>Standardisation of service/matl spec. </li></ul><ul><li>No centralised location for Brochures </li></ul><ul><li>No planning for spares </li></ul><ul><li>Beyond My work-Group </li></ul><ul><li>Waiting for materials </li></ul><ul><li>WAITING FOR CLEARANCE </li></ul><ul><li>SAP-ERP not user frindly, too long </li></ul><ul><li>Inventory ctrl – some high /low </li></ul><ul><li>Decision for scrapping of items –delayed approval </li></ul><ul><li>Repetiion in preparation of proposals </li></ul><ul><li>No suitable workplace not allotted </li></ul><ul><li>No sufficient PCs </li></ul><ul><li>Improper trg-lateral induction </li></ul><ul><li>Coal dust/water –leakage from CHP conveyer belts </li></ul>
    76. 84. Possibility for Improvement In My work-Group Beyond My work-Group
    77. 85. MUDA Overview <ul><li>For the participants: </li></ul><ul><li>Which areas in your office will get benefit out of MUDA elimination? </li></ul><ul><ul><li>---- </li></ul></ul><ul><ul><li>---- </li></ul></ul><ul><ul><li>---- </li></ul></ul>
    78. 86. Waste Elimination Value Added time : What the customer is willing to pay for Tea Breaks, Lunches, Training Education, <ul><li>Non Value added work </li></ul><ul><li>Unnecessary motion </li></ul><ul><li>Material handling </li></ul><ul><li>Waiting time </li></ul><ul><li>Rework/ scrape </li></ul><ul><li>Unnecessary part </li></ul><ul><li>processing </li></ul><ul><li>Excess inventory </li></ul><ul><li>Over Production` </li></ul>37% 13% 50% 13% 89%
    79. 87. Find the Root Cause - Asking ‘WHY’ for 5 times & - 5W 1H How to eliminate?
    80. 88. 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
    82. 90. EXAMPLE
    84. 94. Six Honest Serving Man <ul><ul><li>Rudyard Kipling , 1865 -1936 </li></ul></ul><ul><li>from &quot;The Elephant's Child&quot; in Just So Stories </li></ul><ul><li>I keep six honest serving men </li></ul><ul><ul><li>(They taught me all I knew ); </li></ul></ul><ul><li>Their names are What and Why and When </li></ul><ul><ul><li>And How and Where and Who . </li></ul></ul><ul><li>I send them over land and sea, </li></ul><ul><ul><li>I send them east and west; </li></ul></ul><ul><li>But after they have worked for me, </li></ul><ul><ul><li>I give them all a rest. </li></ul></ul>
    85. 95. 5 W 1 H of MUDA
    86. 96. Can 5 S become MUDA S S S S S When attitude is wrong.
    87. 97. 3 M <ul><li>MUDA (Waste) </li></ul><ul><li>MURI ( Strain / </li></ul><ul><li>Over burden ) </li></ul><ul><li>MURA (Unevenness ) </li></ul>Eliminating 3 M
    88. 98. MURI : Overburdon
    89. 99. MURI : Overburdon
    90. 100. Identifying MURI MURI = Physical Strain, Overbourden <ul><li>Placing of excessive demands on </li></ul><ul><li>People </li></ul><ul><li>M/cs, Production equipment. </li></ul>Muri is caused by the respect of unsuited standards. <ul><li>Bend to work? </li></ul><ul><li>Push hard? </li></ul><ul><li>Lift weight? </li></ul><ul><li>Repeat tiring action? </li></ul><ul><li>Wasteful walk? </li></ul>
    91. 101. Standing posture <ul><li>Keep your spinal column aligned in its natural curves. </li></ul><ul><li>Prop one foot up on a stool to reduce stress in your lower back. </li></ul>
    92. 102. 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.
    93. 103. Eliminating MURA <ul><li>MURA is </li></ul><ul><li>Inconsistent or </li></ul><ul><li>Irregular or </li></ul><ul><li>Uneven use of person or M/c. </li></ul>Happens sometimes? Happens some places Happens to some people One side is ok; the other side is not ok
    94. 104. 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.
    95. 105. Examples of MUDA, MURI, MURA <ul><li>How best to move 6000 kg load with a forklift having a capacity of 2000 kg?. </li></ul><ul><li>The choices are </li></ul><ul><li>6 trips @ 1000 kg, </li></ul><ul><li>2 trips @ 2000 kg + 2 trips at 1000kg, </li></ul><ul><li>2 trips @ 3000 kg.  </li></ul><ul><li>What the individual choices indicate? </li></ul>
    96. 106. 'Understand the different types of waste and get into the habit of pointing out examples of them every day.'
    97. 107. Continuous Improvement Cycle Waste Exposed Find Root Cause Implement Improvement Standardize Work
    98. 108. It is the continuous elimination of waste. Continuous Improvement Taking New Problem Solving it Standardizing it
    99. 110. How other’s Do it? <ul><li>GE’s “ Workout ” Programme </li></ul><ul><ul><li>“ Work out” - taking unnecessary work out of the system; </li></ul></ul><ul><ul><li>Groups of 30 – 100 employees share their views on Business & Bureaucracy </li></ul></ul><ul><ul><li>Every business units to have 100s of Workouts </li></ul></ul><ul><ul><li>2-3 days duration </li></ul></ul><ul><ul><li>Outside facilitators leads the discussion </li></ul></ul><ul><ul><li>Ideas presented and decisions have to be taken on the spot OR by a defined date </li></ul></ul><ul><ul><li>Decisions have to be given for atleast 75 % ideas </li></ul></ul>
    100. 111. How other’s Do it? Production Production Capability <ul><li>Japanese Organisation </li></ul>
    101. 113. <ul><li>Average Organization= Great Organization + MUDA </li></ul><ul><li>Great Organization = Average Organization - MUDA </li></ul>Success & Happiness Equations Humans= God + MUDA God = Humans - MUDA Good to Great Journey Happiness Journey
    102. 114. Quality doesn’t happen by Accident, It has to be Planned
    103. 115. Business Process <ul><li>Material Inputs </li></ul><ul><li>Raw materials </li></ul><ul><li>Consumables </li></ul><ul><li>Utilities </li></ul><ul><li>Human Efforts </li></ul><ul><li>Knowledge * Skill </li></ul><ul><li>* Attitude * Time </li></ul>Facilities *Equipment * Technology * Infrastructure * Systems Products Bye-products Waste Information <ul><li>Information </li></ul><ul><li>Production & </li></ul><ul><li>Delivery Schedules </li></ul>Process
    104. 116. 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?
    105. 117. <ul><ul><li>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). </li></ul></ul><ul><ul><li>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). </li></ul></ul><ul><ul><li>It’s easy to come up with other examples. </li></ul></ul><ul><ul><li>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. </li></ul></ul>