IENG 451 - Lecture 16

1. IENG 451 - Lecture 16 MUDA (Waste): Waste’s Impact on Systems IENG 451 Operational Strategies

2. House of Lean CUSTOMER FOCUS: Highest Quality, Lowest Cost, Shortest Lead Time by continually eliminating Muda JUST IN TIME JIDOKA INVOLVEMENT: (Intelligent Human-Machine Systems) Flexible, motivated team members continually seeking a better way STANDARDIZATION STABILITY IENG 451 Operational Strategies

3. Eliminating Waste in Lean Systems • Focus on VALUE: What the customer would be willing to pay for – if they knew we did it • Value-Added – actual work of transforming the product or providing the service • Auxiliary Work – (BNVA) – supports the work being done or required for regulatory purposes • Non-Value-Added – if you stopped doing it, there would be no adverse effect on the product or service • Japanese terms for waste: • Mura – unevenness • Muri – difficult to do • Muda – wasted effort IENG 451 Operational Strategies

4. Eliminating Waste in Lean Systems • Mura: Unevenness or fluctuation in work • Ex. Batch Production – seeks to minimize set-up costs while still allowing the system to produce a mix of orders To save on multiple set-ups, make the batches as big as possible • Problem – workers strain to produce the difficult items, then coast the other part of the time • Solution(s) • SMED – single minute exchange of dies (switch-overs) Reduce the sequential activities for set-up by concurrency • Heijunka– production leveling Mix the models being produced in an even fashion IENG 451 Operational Strategies

5. Eliminating Waste in Lean Systems • Muri: Difficult to do • Ex. Variation in Production – seasonal customer orders shock the production system • Ex. Poor Job Design – worker strain • Ex. Inadequate Tools – difficult inspection using old tools • Ex. Unclear Specifications – workers are not clear on what to do to produce what the customer desires • We have many tools to fix these, if we allow ourselves the time to improve the system • Ex. Bear Sneakers • Ex. Bucksaw Sharpening IENG 451 Operational Strategies

6. Work Eliminating Waste in Lean Systems MUDA Work Actual MUDA • MUDA – 8 wastes: • Waste of Motion • (Un-)Ergonomic Strain • Waste of Delay • Lead Time = Process + Retention • Waste of Conveyance • Smaller batches, closer stations • Waste of Correction • Rework and scrap • Waste of Over-Processing • Delivering more than customer wants • Waste of Inventory • WIP – work in process • Waste of Over-Production • Things that don’t sell • Waste of Knowledge • Knowledge that is earned, but not shared Auxiliary Work Work Motion Motion Motion Motion IENG 451 Operational Strategies

7. Manufacturing Cost Breakdown 40% 15% 5% 25% 15% Selling Price Manufacturing Cost Eng’g Admin, Sales, Mktg, etc. Profit R & D Plant / Mach. Depreciation, Energy Direct Labor Indirect Labor Parts & Mat’ls Mfg Cost 12% 26% 12% 50% Fig. 2.5 Breakdown of costs for a manufactured product [Black, J T. (1991)] IENG 451 Operational Strategies

8. 30% 70% Time on machine Cutting Loading, Positioning, Gaging, etc. Value-Added Time in Manufacturing Time on machine Moving & Waiting Time in factory 5% 95% Fig. 2.3 How time is spent by a typical part in a batch production machine shop IENG 451 Operational Strategies

9. House of Lean CUSTOMER FOCUS Hoshin Planning, Takt, Heijunka Involvement, Lean Design, A3 Thinking JUST IN TIME JIDOKA INVOLVEMENT Standardized Work 5S TPM Kaizen Teams Suggestions Safety Activities Hoshin Planning • Poke Yoke • Zone Control • Visual Order (5S) • Problem Solving • Abnormality Control • Separate Human & Machine Work • Involvement • Flow • Heijunka • Takt Time • Pull System • Kanban • Visual Order (5S) • Robust Process • Involvement STANDARDIZATION Visual Order (5S) Hoshin Planning Standardized Work Kanban, A3 Thinking STABILITY Jidoka, Heijunka, Kanban Standardized Work, 5S, TPM IENG 451 Operational Strategies

10. Questions & Issues IENG 451 Operational Strategies