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.