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1
Object of Enterprise
• To Increase Profit– Growth by Top & Bottom Line– Living Standard Improves
Presented by: PAWAN SEHRAWAT
2
INCREASE PROFIT
× Selling Price = Cost + Profito Profit = Selling Price – Cost
Selling Price is Decided by Market
Leads to
Actual Movement of Reducing Cost
Presented by: PAWAN SEHRAWAT
3
Reduce Cost
Decided by manufacturing method
Material Cost
EnergyCost
Processing Cost
Others
Cost Price
Processing Useful Job from customer point of viewConveyance
Inspection
Stagnation
Waste
Worthless Job does not increase value to the process
Remove Waste
Actual movement for Reducing Cost
Presented by: PAWAN SEHRAWAT
4
Concept of 3M
Presented by: PAWAN SEHRAWAT
5
3 MU’s
MURI – STRAIN
MURA – INCONSISTENCY / IMBALANCE
MUDA – WASTE
Muda
MuraMuri
Presented by: PAWAN SEHRAWAT
6
Elimination of MUDA (Waste)
What is MUDA
Operation = Work + MUDA
Work = Increases value of production
MUDA = Increases cost of production
Kaizen (Improvement)
Total amount of labor No Change
= Work MUDAMUDA
Working
Work
Work + MUDATo 100%Labor Density Effectiveness =
Presented by: PAWAN SEHRAWAT
7
Type of Mudas
Presented by: PAWAN SEHRAWAT
8
Types of MUDA (Waste)
MUDA of OverproductionMUDA of StockMUDA of Conveyance (Transport)MUDA of WaitingMUDA of Operation ItselfMUDA of Movement of WorkerMUDA of Production of Inferior goods
MUDA Monster
Profit
Presented by: PAWAN SEHRAWAT
9
Over Production is the Worst MUDAIncrease Raw Material Purchasing( MUDA of Stock)
Increase Workers
Add Machines
Loose Money
NecessaryQ’ TY
Over Production
Meaningless Increase of Efficiency10 Workers : 100 Products
10 workers : 120 Products
Necessary Q TY : 100
Over Production
Store House Conveying Equipment Bin
Additional ware House
LooseMoney Conveyance
Interest Rate
Moving Material which is not Required
Presented by: PAWAN SEHRAWAT
10
Sample of MUDAMUDA of Overproduction
Before installing pipe on productmake a lot of pipes on preparationtable
Only one is necessary for product
Within one cycle to make only necessary quantity
Presented by: PAWAN SEHRAWAT
11
Reduction of walking distance MUDA of Movement
Working order is changed 1 2 3 4 5 61 4 6 2 5 3
Presented by: PAWAN SEHRAWAT
12
MUDA of Stock
Will add cost of :-
– Tools
– Inventory
– Poor Life
– Scrap due to method change (Obsolete)
– Storage and upkeep
– Searching
Presented by: PAWAN SEHRAWAT
13
MUDA of Transportation
Loading
Transfer
This worker is changing parts to new pallet.
Presented by: PAWAN SEHRAWAT
14
MUDA of Transportation
Install
Carry
CarryTo Temporary
Store
FromWare House
To PlantNext
Nextto the
Machine
To the Opera
Aren’t you doing this kind of useless transport?
Presented by: PAWAN SEHRAWAT
15
MUDA of Waiting
While filling water in A C,do other job
Bad case Waiting until a can is filled
Presented by: PAWAN SEHRAWAT
16
MUDA of Waiting (Case 2)
Operator has to walk long distance
(2 ‘S’)
By rearranging parts save moving distance with in arm -reach
Presented by: PAWAN SEHRAWAT
17
MUDA of Operation
Installation of bolt and screw (Two types of head)
Worker uses two kind of air toolsFor Screw
For Bolt
Improvement of air tool
Combining / modifying to use both without changing the tool head
Presented by: PAWAN SEHRAWAT
18
MUDA of Movement
Shortage of a Tool bit/Socket Small
bagfor small part and tool bits
Worker goes to take a tool from the rack repeatedly
Presented by: PAWAN SEHRAWAT
19
Adoption of part boxMUDA of Movement of Worker
Workers go to take parts repeatedly
Part Box
Presented by: PAWAN SEHRAWAT
20
MUDA of Production of Inferior Goods
Due to incomplete installation of tool and Jig
MUDA (Inferior goods) of manufacturing
1. Effort for job is high
2. Non-conforming to specification
3. Worn socket
4. Incomplete tool
5. Low productivity
Do operation over again
Use Jig
Presented by: PAWAN SEHRAWAT