Muda (Japanese term)
From Wikipedia, the free encyclopedia
Muda (無駄) is a Japanese term for anything that is wasteful and doesn't add value. It is also a key concept in the Toyota Production System. Waste reduction is an effective way to increase profitability.
A process adds value by producing goods or providing a service. A process also consumes resources. Waste occurs when more resources are consumed than are necessary to produce the goods or provide the service.
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[edit] The Seven Wastes (Plus One)
The following Seven Wastes identify and classify resources which are commonly wasted. They were identified by Toyota’s Chief Engineer, Taiichi Ohno. Since that time one more type of waste has been added to the list:
[edit] Defects
Quality defects prevent the customer from accepting the product produced. New processes must be added in an effort to reclaim some value for the otherwise scrap product.
[edit] Overproduction
Overproduction is the production or acquisition of items before they are actually required.
[edit] Transportation
Each time a product is moved it stands the risk of being damaged, lost, delayed, etc.
[edit] Waiting
Refers to both the time spent by the workers waiting for resources to arrive, the queue for their products to empty as well as the capital sunk in goods and services that are not yet delivered to the customer.
[edit] Inventory
Work-In-Progress (WIP) represents a capital outlay that has not yet produced an income either by the producer or by the consumer.
[edit] Motion
As compared to Transportation, Motion refers to the producer or worker. This has significance to damage, wear, safety. It also includes the fixed assets, and expenses incurred in the production process.
[edit] Overprocessing
Using a more expensive or otherwise valuable resource than is needed for the task. There is a particular problem with this item as regarding people. People may need to perform tasks that they are over qualified for so as to maintain their competency. This training cost can be used to offset the waste associated with overprocessing.
[edit] Skill
Organizations employ their staff for specific skills that they may have. These employees have other skills, it is wasteful to not take advantage of these skills as well. "It is only by capitalizing on employees' creativity that organizations can eliminate the other seven wastes and continuously improve their performance."
