muda- pakaim

8/3/2019 MUDA- Pakaim

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PRODUCTION OPERATIONS MANAGEMENT

P M

By: ZAHID HUSSAIN

M Phil: Total Quality Management

Lead Auditor 5-SIRCA Lead Auditor ISO-9001-2000

IRCA Lead Auditor ISO-14000-2004IRCA Lead Auditor OHSAS 18000-2007

B. Sc Engineering (Chemical)


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Value Addition

Process Velocity = Throughput time

Value-added time-Throughput time = Average time for a unit tomove through the entire process.

- Value added time = the useful work actuallybeing done on the unit.

Value added work

Value-added work is utilizing resources that addvalue to the finished product, whether it's

actually building a product or shipping it.


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-Three factors for work to be considered as

value-added,

Capacity. The employees and tools used musthave the necessary capacity to perform the work

and add value to it.Information/Instructions. The workers must havethe proper information and instructions neededto complete the job with as little non-value added

work, or waste, as possible.Materials. This refers to the materials required to

properly complete the work.

Non value added work - Example

Value Addition


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Non value work Non-value added work, also called waste, refers

to work that doesn't add value to or is

unnecessary for the overall project.

Operation manager have to Eliminate non-value added work

Increasing their value-added work

How to accomplish this.

First evaluate the practices used, to identify any

non-value added work

Take steps to reduce

Monitor , measure and improve constantly.

Value Addition


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Business Process


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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

Non-value activities adds up to the cost

Waste is anything other than the minimum amount ofequipment, materials, parts, space, and workers time,

which are absolutely essential to add value to the product.


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Organizations Value Stream

Process-1 V

W

Process-2 V

W

Process-3 V

W

Process-4

W

ProductV

Input

It is a network of different Business Processes.

V: Value added product/servicesW: Wasteful product / practices/services that does not add value


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Economic Value of Waste

Every business activity absorbsresources and every resource has acost

Every waste has a cost, and that isdirect loss to the company.

Economic value of waste in a process

industry are in the range of 10 -35%of annual turnover


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Integrated Quality

Quality

CustomerRequirements

ProcessCapability

Cost

Selling Price

Production Cost

Delivery

CustomerSchedule

Process Speed

Supplier

Customer


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Waste : the value destroyers

Quality

Customer

Requirements

ProcessCapability

Cost

Selling Price

Production Cost

Delivery

Customer

Schedule

Process Speed

Supplier

Customer


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OBJECTIVES of Improvement Initiatives


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OBJECTIVES of Improvement Initiatives

ImprovedProfitability

Enhanced Competitiveness

QUALI

TY

COST

effectiveness

DELIV

ERY

Improvement Initiatives


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Increasing Profit by Increasing Price


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Increasing Profit by reducing Cost


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Changing the performance level

Current State

Future State

Perfo

rmancelevel

Time frame

Ideal State


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Unnecessary Motions

Waiting for work and materials

TransportationsOverproduction

Processing

Inventories / Unnecessary WIP

Corrective operation

7 Seven MUDA [Wastes]


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Movement that does not add value:

Searching for files

Extra clicks or key strokes

Clearing away files on the desk

Gathering informationLooking through manuals and catalogs

Handling paperwork

MUDA of Motion [1/7]

using unnecessary movement and energy

used to perform tasks.


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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]


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Movement of information that doesnot add value:

Carrying documents to and frofrom shared equipment

Taking files to another person

Going to get signatures

MUDA of Transport [3/7]


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Generating more information than thecustomer needs right now:

More information than the customerneeds

Creating reports no one reads

Making extra copies

More information than the next

process needs

MUDA of Over production [4/7]


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MUDA of Process

1. Using more expensiveequipment or tools where

simpler ones would

suffice.2. Having meetings that are

not needed.

3. Having people at

meetings that are notrequired.

4. Agenda points, not to be

included;


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Efforts that create no value from thecustomer viewpoint:

Creating reports

Repeated manual entry of data

Excessive paperwork

Use of outdated standard forms

Use of inappropriate software

MUDA of Process


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More information, project, material onhand 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

MUDA of Inventory [6/7]


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Rule of 10

Prevention:Correction:Failure

= 1:10:100

100

10

1

Why Repair/Replacement inWarranty period be a MUDA?

MUDA of Correction [7/7]

Prevention is always

cheaper.


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Work that contains errors, rework,mistakes or lacks something necessary:

Data entry error

Pricing errorMissing information

Missed specifications

Lost recordsRework

Rescheduling meetings

7/7 Wastes of Information


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Value Added time:

What the customer is willing to pay for

Tea Breaks, Lunches,TrainingEducation,

Waste Elimination

37%

13%

50%

Non Value added work

Unnecessary motion

Material handling

Waiting time

Rework/ scrape

Unnecessary part

processing

Excess inventory

Over Production`

13%

89%


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For Better Productivity

Understand the different typesof waste and get into the habit

of pointing out examples ofthem every day.'

S & i i


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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


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QUESTIONS

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