e GE Capital International Services

MUDA !!!
7 Types of Wastes
GE Capital International Services MUDA
Processing
Waiting People

Motion
Inventory
Quantity
Moving Things
Overproduction
Defects/Inspection Quality

I WANT YOU
TO HELP ELIMINATE MUDA!
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GE Capital International Services Defining Value
Value Added Activity
• Activity that meets customer requirements
• Something customers are willing to pay for…
• Things that should be done… Work

Non -Value Added Activity

• All other actions are by definition WASTE… adding no value to the customer
• Simply raises costs in our business!
• Things that should not be done… Waste
Before

After

Time
Value Added Work

Non Value Added Work

Eliminate Non-Value Activity

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GE Capital International Services The Seven Types of Waste
The Seven Types of Waste
Processing
Waiting People

Waiting Motion Transportation

Inventory
Quantity
Moving Things
Overproduction
Defects/Inspection Quality
Overproduction
Inventory

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GE Capital International Services Waste: Processing
• Unnecessary or non-value added activities

• Typical causes:
– Work is not standardized
– Tasks are not simplified
– Operations are not understood

• Improvement ideas:
– Automate the process
– Eliminate non-value added steps
– Combine steps/forms

• Examples
– In Logistics area, web roastering to avoid….
– waste trips
– delay in route planning
– mistakes in employee database

Eliminate Excess Work!

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GE Capital International Services Waste: Waiting
• Unbalanced activities … waiting for previous process

• Typical causes:
– Idle time due to lack of “standard” operations
– Waiting for decisions (dispositions, inspections, materials, etc.)
– Waiting for shared equipment

• Improvement ideas:
– Balance operations
– Eliminate unnecessary approvals
– Establish Single piece flow
– Eliminate hand-offs

• Examples
– Agents waiting for calls
– Agents waiting for Headsets and call masters
– Supervisory approval delays

Eliminate Wait … Smooth Flow

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GE Capital International Services Waste: Motion
• Motion that does not add value to the process

• Typical causes:
– Equipment/Office layout
– Fixture design
– Material storage

• Improvement ideas:
– Implement point of use
– Develop work cells
– Multiskilling Transportation

• Examples
– Transfer of calls ….escalated helpdesk, collections, Fraud
– Running for fax or Xerox to other floor or building

Minimize Wasteful Movements … Movement  Work

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GE Capital International Services Waste: Inventory
• Holding extra material on shelves, racks, and floors

• Typical causes:
– Push production
– Over-ordering
– Too many shelves
– Too much floor space

• Improvement ideas:
– Reduce lead times
– Establish kanban system

• Examples
– Backlog in Accounts re-conciliation
– Employees in bench !!
– Stationeries
– Accounts assigned to re-search department

Efficient Use of Inventory … Not Just-in-Case Inventory

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GE Capital International Services Waste: Moving Things
• Unnecessary movement of parts and equipment

• Typical causes:
– Unnecessary inventory
– Poor shop/office layout

• Improvement ideas:
– Reduce inventory
– Reduce lead times
– Eliminate unnecessary files
– Create a paperless process

• Examples
– Application approval process….
– Several steps not in sequence
– Approval authorities located at different locations
– Crisscross process flow

Movement Does Not Equal Work!

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GE Capital International Services Waste: Over-production
• Creating parts ahead of schedule (vs. just-in-time)

• Typical causes:
– Production schedules & push production
– Cost justification for expensive equipment
– Working on the wrong parts at the wrong time

• Improvement ideas:
– Reduce lead time and order quantity
– Establish a kanban system
– Remove all unnecessary paperwork

• Example
– In TP process…. Line balancing to ensure single application
flow…..mismatch in cycle time of successive steps !!

Produce or Order Only What is Needed,

When it is Needed, and in the Quantity Needed! oh/10
GE Capital International Services Waste: Defects & Inspection
• Defective work or excessively checking work

• Typical causes:
– Variation in processes
– Collecting unnecessary inspection data

• Improvement ideas:
– Poke Yoke (Mistake Proofing)
– Cross training
– Document procedures

• Examples
– Cycle time or TAT variation across employees
– Repeated inspection or quality check

Six Sigma Mentality … Reduce Quality Defects

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