Taiichi Ohno, the architect of the Toyota Production System developed the concept of ‘MUDA’ (無駄) or ‘’Waste’ is applicable equally to both manufacturing and the service sector of the economy. These seven wastes are described below:
Over-Production: This usually happens because of working with oversize batches, long lead times and poor supplier relations. The key element of JIT is making only the quantity required of any component or product. Sound stock management procedures and production techniques are necessary to ensure that the correct quantities are ordered and made.
Excessive Inventory: Unwanted inventory costs you money – besides, it needs space and packaging. It can also get damaged during transportation and become obsolete. Every piece of product tied up in work in progress or finished goods have a cost and until it is sold that cost have to be borne. So the objective is to carry as little as possible to meet the requirements (see here how one company reduced finished goods inventory by 62.8%).
Waiting Time: Machines that are not compatible and produce at different rates can cause waiting on the production line. So processes become ineffective and add no value – only cost and inconvenience. Instead, the flow of operations should be smooth and continuous. Asprova supports eliminating unnecessary waiting time between processes by synchronizing multiple processes in the schedule.
Unnecessary Motions: It concerns the design of movement within the working environment as resources are wasted when workers have to end, reach or walk distances to do their jobs. It is vital to make sure that every movement is minimized while still performing the required task. So workplace ergonomics assessment should be conducted to design a more efficient environment.
Redundant Transportation: Moving a product between manufacturing processes adds no value, is expensive and can cause damage or product deterioration. So loads should be maximized; goods should be transported to the correct location and not require additional transportation.
Defects: Products should be designed so as to build in quality from the outset through good use of materials and processes. Defects require an organization to instigate post-manufacturing inspection processes with consequent costs and may involve re-working of an item or failure to meet customer service requirements.
In-appropriate Processing: A basic principle of the TPS is doing only what is appropriate. Improper techniques, oversize equipment, working to tolerances that are too tight, perform processes that are not required by the customer’s costs time and money. Hence overly elaborate and expensive equipment is wasteful if simpler machinery could do the job.
Asprova has always strive to go an extra mile by collaborating with their clients to eliminate overproduction and reduce stock-holdings, while minimizing stock-outs.