The document summarizes Toyota's Production System (TPS) and the seven types of "muda" or waste. It defines muda as any activity that does not add value from the customer's perspective. The seven types of muda are overproduction, waiting, transportation, processing itself, inventory, unnecessary motion, and defects. The document provides examples and causes of each type of muda, and explains how eliminating muda can help reduce costs and increase profits through just-in-time production and continuous improvement. The overall goal of TPS is to minimize lead time and eliminate all sources of muda.

1. Toyota Production System & 7 Muda - Presentation Transcript
1. Toyota Production System KAIZEN NAEEM BHAI
2. Change Better Make it better ( Improvement )
3. Getting Started What is a Manufacturing Company ? Make good quality products Selling to Customer Earn Profit
Guarantee employee’s better life Bring prosperity to people
4. Getting Started What is a good Quality product? お客様が満足する製品 我々の給料は、お客様に製品を買っても
らい、その代金の中から支払われる。 すなわち我々の料の源は、お客様である。 従って、続けて給料を
貰うには、私達が造った製品をお客様に続けて買ってもらはねばならない。 それには、私達が造った製品
にお客様がいつも満足して貰うことが大切である。 Which satisfies the customer
o Reasonable Price
o Good Quality
o On time Delivery
o After sales service
What is Customer Satisfaction?
5. Cost,Profit & Price Profit Cost Selling Price Selling Price = Cost + Profit Cost & Profit Profit = Selling Price - Cost
Selling Price (Rs) How to earn more profit? Increase the selling price Reduce the cost
6. Cost,Profit & Price Material cost Purchased Parts cost Other cost Facility cost The expenses depend upon the method
of manufacturing Every company is same (No big difference in a cost components) There is a difference depending on
industry Cost Cost (Expense) Based on TPS Product Manufacturing and the cost KAIZEN Minimum Investment &
Maximum Profit
7. TPS What is MUDA (Waste)? Identified by Tenchi Ohno-Japan Waste is the use of any material or resource beyond
what the customer requires and is willing to pay for.
8. TPS MURI (overburden) MURA (unevenness) MUDA (waste) Value- Added Work Motions of Worker MUDA= Non
Value-Added Work Non Value-Added Work Customer pays money only for Value-Added Work
9. TPS waste of overproduction Waste of waiting Waste of transportation Waste of processing itself Waste of inventory
Waste of movement Waste of making defective products 7 Types of Muda
10. Inventory
o Any raw material, work in progress (WIP) or finished goods which are not having value added to them
o Caused by:
o Production schedule not level
o Inaccurate forecasting
o Excessive downtime/set up
o Push instead of pull
o Large batching
o Unreliable suppliers
o Why one of the 7 Wastes ?:
o Adds cost
o Extra storage space required
o Extra resource to manage
o Hides shortages & defects
o Can become damaged
o Shelf life expires
11. Over Production
o To produce sooner, faster or in greater quantities than the absolute customer demand
o Manufacturing too much, too early or “Just in Case”
o Overproduction discourages a smooth flow of goods or services
o Takes the focus away from what the customer really wants
o Leads to excessive inventory
o Caused by:
o MRP push rather than kanban pull
o Large batch sizes
o Looks better to be busy!
o Poor people utilization
o Lack of customer focus
o Why one of the 7 wastes ?:
o Costs money
o Consumes resource ahead of plan
o Creates inventory

2. o Hides inventory/defect problems
o Space utilization
12. Motion
o Adds cost
o Motion is the movement of “man”
o Waste motion occurs when individuals move more than is necessary for the process to be completed
o Caused by:
o No standard operating procedure
o Poor housekeeping
o Badly designed cell
o Inadequate training
o Why one of the 7 Wastes ?:
o It interrupts production flow
o Increases production time
o Can cause injury
13. Waiting
o People or parts that wait for a work cycle to be completed
o Where are the bottlenecks?
o What are the major causes of lost machine availability?
o What are we doing to improve machine availability?
o Do people wait on machinery?
o Caused by:
o Shortages & unreliable supply chain
o Lack of multi-skilling/flexibility
o Downtime/Breakdown
o Ineffective production planning
o Quality, design, engineering Issues
o Why one of the 7 Wastes ?:
o Stop/start production
o Poor workflow continuity
o Causes bottlenecks
o Long lead times
o Failed delivery dates
14. Transportation
o Unnecessary movement of parts between processes
o Complex material flow paths
o Poor close coupling
o Wasted floor space
o Unnecessary material handling
o Potential damage to products
o Caused by:
o Badly designed process/cell
o Poor value stream flow
o Complex material flows
o Sharing of equipment
o Why one of the 7 Wastes ?:
o Increases production time
o It consumes resource & floorspace
o Poor communication
o Increases work in progress
o Potential damage to products
15. Over processing
o Processing beyond the standard required by the customer
o By improving processing efficiency we ultimately use less resource to achieve the same customer satisfaction
o Caused by:
o • Out of date standards
o • Attitude - ‘Always done it like this’

3. o • Not understanding the process
o • Lack of innovation & improvement
o • Lack of standard operation procedures
o Why one of the 7 Wastes ?:
o • It consumes resource
o • It increases production time
o • It’s work above and beyond specification
o • Can reduce life of component
16. Non-Right First Time (Scrap, Rework and Defects)
o A defect is a component which the customer would deem unacceptable to pass the quality standard
o • Defects reduce or discourage customer satisfaction
o • Defects have to be rectified
o • Rectification costs money with regard to time effort and materials
o • Defects in the field will lose customers
o • Right first time is the key
o Caused by:
o • Out of control/Incapable processes
o • Lack of skill,training & on the job support
o • Inaccurate design & engineering
o • Machine inaccuracy
o • Black art processes
o Why one of the 7 Wastes ?:
o • Adds costs
o • It interrupts the scheduled • It consumes resources
o • It creates paper work
o • Reduces customer confidence
17. TPS Over Burden Adding work without eliminating Muda Understanding of Adding Work Eliminating Muda through
Kaizen Adding Work in Saved Time = work MUDA work work MUDA MUDA Adding Work No Over Burden work
work MUDA KAIZEN MUDA work MUDA = Adding Work
18. TPS Minimize Lead Time Minimize Non Processing Time Many types of MUDA will be highlighted when we
minimize the Non Processing Time Lead Time = Processing Time + Non Processing Time = + = LEAD TIME Lead
Time : time required to process from start to end (i.e. from raw material processing till packing goods)
19. Eliminate all MUDA from work site(NO.1) Injection Shop= Ground Floor Assembly Shop= 1 st Floor Ground Floor
Ground Floor+ Use of Trolley [Before] [After]
20. Eliminate all MUDA from work site(NO.2) ﾗｲｾﾞﾝ ﾋﾞﾃﾞｵ Make Process Flow Video-3 Video-4 punching Jig Assy Jig
21. Countermeasure (Example-3) ｻｰﾓｿﾙ Waste of processing itself Waste of Inventory(W.I.P) Three drill bits for three
holes
o Single tool with three
o sizes for three holes
o No need to change tool
o Achieve Single Piece Flow
o No WIP
7.0mm 4.0mm 5.5mm
22. Let’s move towards continual Kaizen Thank You
Why- Why Analysis & Muda into 7 categories
We inspect actual job sites we find that MUDA is prevailed
Thoroughly investigate the true cause by asking five "Whys" and efficiently eradicate Muda

4. Elimination of Muda
Do you carry heavy parts with all your might?
Do you count the parts for which operation has been
completed or make modifications for them?
Do you move the parts piled on the floor onto a dolly for transport?
Are parts to be delivered to the next process put in plastic bags?
Does setup take a lot of time?
Are defective products continually produced?
How to Find Waste
Do it in the daily production activities
@Flush out waste by thorough implementation of 4S (Seiri,
@Flush out waste by thorough implementation of 4S (Seiri,
Seiton, Seisou, and Seiketsu) "
@Controlofexcessiveprogress:makeonlywhatis necessary @Visual management:
make waste known to everyone ........., ~
separate the necessary and the unnecessary
Inventory? Work-in-process? Unnecessary machines?
Unnecessary equipment?

5. Unnecessary jigs? Unused space?