Operations

Management

Course : MBA

Register No. :AD 1170

Name : CHITRAKANT DESHMUKH.

BAR
Phone No. : 9098648889
The 7 wastes explained

Waste is the use of any material or resource beyond what the customer requires and
is willing to pay for.

Lean Manufacturing aims to identify and eliminate waste to improve the performance
of the business.

Shigeo Shingo identified “Seven” forms of waste (Plus one – The eighth waste, under
utilization of people) These 7 forms of waste are shown below

1. Over Production

• To produce sooner, faster or in greater quantities than the absolute

customer demand

• Manufacturing too much, too early or “Just in Case”

• Overproduction discourages a smooth flow of goods or services

• Takes the focus away from what the customer really wants
• Leads to excessive inventory

Caused by:

• MRP push rather than kanban pull

• Large batch sizes

• Looks better to be busy!

• Poor people utilisation

• Lack of customer focus

Why one of the 7 wastes ?:

• Costs money

• Consumes resource ahead of plan

• Creates inventory

• Hides inventory/defect problems

• Space utilisation

2. Inventory

Any raw material, work in progress (WIP) or finished goods which are not
having value added to them

Caused by:

• Production schedule not level

• Inaccurate forecasting

• Excessive downtime/set up

• Push instead of pull

• Large batching

• Unreliable suppliers

Why one of the 7 Wastes ?:

• Adds cost
• Extra storage space required

• Extra resource to manage

• Hides shortages & defects

• Can become damaged

• Shelf life expires

3. Motion

• Adds cost

• Motion is the movement of “man”

• Waste motion occurs when individuals move more than is necessary for the
process to be completed

Caused by:

• No standard operating procedure

• Poor housekeeping

• Badly designed cell

• Inadequate training

Why one of the 7 Wastes ?:

• It interrupts production flow

• Increases production time

• Can cause injury

4. Waiting

People or parts that wait for a work cycle to be completed

• Where are the bottlenecks?

• What are the major causes of lost machine availability?

• What are we doing to improve machine availability?

• Do people wait on machinery?

Caused by:

• Shortages & unreliable supply chain

• Lack of multi-skilling/flexibility

• Downtime/Breakdown

• Ineffective production planning

• Quality,design,engineering Issues

• ‘Black art’ processes

Why one of the 7 Wastes ?:

• Stop/start production

• Poor workflow continuity

• Causes bottlenecks

• Long lead times

• Failed delivery dates

5. Transportation

Unnecessary movement of parts between processes

• Complex material flow paths

• Poor close coupling

• Wasted floor space

• Unnecessary material handling

• Potential damage to products

Caused by:

• Badly designed process/cell

• Poor value stream flow

• Complex material flows

• Sharing of equipment
Why one of the 7 Wastes ?:

• Increases production time

• It consumes resource & floorspace

• Poor communication

• Increases work in progress

• Potential damage to products

6. Over-Processing

Processing beyond the standard required by the customer

By improving processing efficiency we ultimately use less resource to achieve

the same customer satisfaction

Caused by:

• Out of date standards

• Attitude - ‘Always done it like this’

• Not understanding the process

• Lack of innovation & improvement

• Lack of standard operation procedures

Why one of the 7 Wastes ?:

• It consumes resource

• It increases production time

• It’s work above and beyond specification

• Can reduce life of component

7. Non-Right First Time (Scrap, Rework and Defects)

A defect is a component which the customer would deem unacceptable to

pass the quality standard

• Defects reduce or discourage customer satisfaction

• Defects have to be rectified

 • Rectification costs money with regard to time effort and materials

• Defects in the field will lose customers

• Right first time is the key

Caused by:

• Out of control/Incapable processes

• Lack of skill,training & on the job support

• Inaccurate design & engineering

• Machine inaccuracy

• Black art processes

process redesigns.

The following "seven wastes" identify resources which are commonly wasted. They were
identified by Toyota’s Chief Engineer, Taiichi Ohno as part of the Toyota Production
System[4]:

[edit] Overproduction

Overproduction happens each time you engage more resources than needed to deliver to
your customer. For instance, large batch production, because of long change over time,
exceeds the strict quantity ordered by the customer. For productivity improvement,
operators are required to produce more than the customer needs. Extra parts will be
stored and not sold. Overproduction is the worst muda because it hides or generates all
others, especially inventory.[citation needed] Overproduction increases the amount of space
needed for storing raw material as well as finished goods. It also requires a preservation
system.

[edit] Unnecessary transportation

Each time a product is moved it stands the risk of being damaged, lost, delayed, etc. as
well as being a cost for no added value. Transportation does not make any transformation
to the product that the consumer is supposed to pay for.

[edit] Inventory

Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods,

represents a capital outlay that has not yet produced an income either by the producer or
for the consumer. Any of these three items not being actively processed to add value is
waste.
[edit] Motion

As compared to Transportation, Motion refers to the producer, worker or equipment. This

has significance to damage, wear and safety. It also includes the fixed assets and expenses
incurred in the production process.

[edit] Defects

Whenever defects occur, extra costs are incurred reworking the part, rescheduling
production, etc.

[edit] Over-processing

Over-processing occurs any time more work is done on a piece than what is required by
the customer. This also includes using tools that are more precise, complex, or expensive
than absolutely required.

[edit] Waiting

Whenever goods are not in transport or being processed, they are waiting. In traditional
processes, a large part of an individual product's life is spent waiting to be worked on.

An easy way to remember the 7 wastes is TIMWOOD.

The term ‘maintenance’ means to keep the equipment in operational condition or repair it
to its operational mode. Main objective of the maintenance is to have increased
availability of production systems, with increased safety and optimized cost. Maintenance
management involves managing the functions of maintenance. Maintaining equipment in
the field has been a challenging task since the beginning of industrial revolution. Since
then, a significant of progress has been made to maintain equipment effectively in the
field. As the engineering equipment becomes sophisticated and expensive to produce and
maintain, maintenance management has to face even more challenging situations to
maintain effectively such equipments in industrial environment. This brief lecture on
maintenance management includes maintenance strategies, functions of maintenance
department, maintenance organization and elements of maintenance management.
FUNTIONS OF A MAINTENANCE DEPARTMENT

Following are the major functions of a maintenance department [3-4]:

• Maintenance of installed equipment and facilities

• Installations of new equipment and facilities
• PM tasks – Inspection and lubrication of existing equipment
• CM tasks – monitoring of faults and failures using appropriate techniques
• Modifications of already installed equipment and facilities
 • Management of inventory
• Supervision of manpower
• Keeping records

MAINTENANCE ORGANIZATION

It concerns in achieving an optimum balance between plant availability and maintenance

resource utilization. The two organization structures that are common are: Centralized
and Decentralized. A decentralized structure would probably experience a lower
utilization than centralized one but would be able to respond quickly to breakdowns and
would achieve higher plant availability. In practice, one may have a mix of these two. A
maintenance organization can be considered as being made up three necessary and
interdependent components.

1. Resources: men, spares and tools

2. Administration: a hierarchy of authority and responsibility for deciding what,
when and how work should be carried out.
3. Work Planning and Control System: a mechanism for planning and scheduling
the work and feeding back the information that is needed for correctly directing
the maintenance effort towards defined objective.

It may be mentioned that maintenance / production system is a continuously evolving

organism in which the maintenance organization will need continuous modifications in
response to changing requirements. Moreover, it is required to match the resources to
workload. Maintenance activities – be it preventive or condition monitoring, involve use
of resources- men and materials including documents. This requires coordination
amongst the involved personnel so that these are timely undertaken. Work planning and
control system under maintenance management in the plant ensures this and provides
planning and control of activities associated with maintenance. This means application of
general management principles of planning, organizing, directing and controlling to the
maintenance functions, e.g. to the establishment of procedures for development of
maintenance strategy and to models for describing the flow of work through maintenance
work planning department. Control system controls the maintenance cost and plant
condition.

ELEMENTS OF EFFECTIVE MAINTENANCE MANAGEMENT

An effective maintenance system includes the following elements [3-4]:

• Maintenance Policy
• Control of materials
• Preventive Maintenance
• Condition Monitoring
• Work Order
• Job planning
• Priority and backlog control
 • Data recording system
• Performance measurement measures or indices

Maintenance performance for a plant or an organization can be assessed through analysis

of Reliability, Availability and Maintainability (RAM) plant data. Relevant parameters,
measures or indices for specific plants can be identified [5]. The performance over a
period of time will show if it is improving, going down or being sustained. This will also
help in knowing how well the objectives are being met. In addition, it will guide the areas
which are strong and which need to be strengthened. Use of computers and dedicated
software will certainly help in implementing this and the maintenance management
system in general.

6.0 SAFETY
Several definitions exist.

ICAO Doc 9735, Safety Oversight Manual” has this definition:

A condition in which the risk of harm and damage is limited to an acceptable level.

The Air Navigation Commission (ANC) has adopted the following definition of Aviation
Safety:

The state of freedom from unacceptable risk of injury to persons or damage to aircraft
and property.

Another way of saying basically the same is to say that acceptable SAFETY means that
all risk levels are kept below the risk limits, reference the ALARP figure, or that all
hazard scenarios are kept in the acceptable region of the Tolerability matrix.

SAFETY MANAGEMENT SYSTEM

A definition can be found in Doc 9774.

Safety management system. A system for the management of safety at aerodromes

including the organizational structure, responsibilities, procedures, processes and
provisions for the implementation of aerodrome safety policies by an aerodrome
operator, which provides for the control of safety at, and the safe use of, the aerodrome.

Q.No. 6: What is method study? Describe the procedural steps to develop easier and
effective methods?
Answer:
Method study is the systematic recording and critical examination of existing and
proposed ways of doing work, as a means of developing and applying easier and more
effective methods and reducing costs.

Method study is an organized approach and its investigation rests on the following six
basic steps outlined in the block diagram:

• Select the work to be analyzed.

• Record all facts relating to the existing method.
• Examine the recorded facts critically but impartially.
• Develop the most economical method commensurate with plant Requirements
• Install the new method as standard practice.
• Maintain the new method.

Selection of the job

Selections of the jobs to be studied for methods improvement by the method study practioner
is a managerial responsibility and it (selection) may be based on economic technical or human
consideration. Economic consideration justifies selection based on the economic worth (i.e.
money saving potential) of the job.

Technical consideration identifies jobs, which require studies to overcome manufacturing

difficulties (excessive rejection, relaxation in prefixed performance standards, inability if the
shops to stick to specified machining parameters such as speeds, feeds, depth of cut etc.,
inconsistent quality etc.) Human consideration in job selection is usually given weight-age
while introducing method study practices for the first time.

Recording of facts

Systematic recording is the most crucial step in method improvement. Since recording by
long hand (or by descriptive method) has its limitations, it is not recommended for use in
method study. Instead, five symbols and eight charting conventions are used to record facts
relating to the job under study. Five typical symbols are O, ||, , D and V and eight charting
conventions concern composition of the chart, reject, rework, repletion, change of state,
introducing of new material, combined events and numbering of events. The document on
which details of the process are recorded by the above referred symbols and conventions is
called chart. There are four basic types of chart: (i) operation process chart (ii) Flow process
chart (iii) multiple activity charts and (iv) two handed process chart.

Besides charts, two types of diagrams-flow diagram and string diagram are drawn when
recording details of an existing layout. Travel chart is another typical chart, which is used to
record frequency of movements (weight x distance) between work centers/departments.

Repetitive short cycle operation that involves quick hand / feel motions (i.e. microscopic
motions) may be studied with micro motion study. Glibreth, founder father of micro motion
study, also developed photographic techniques called cyclograph and chronocylegraph to
record path of the motions of the members of the body.

Critical examination

Critical examination aims to analyze the facts critically and thereby give rise to alternatives,
which form the basis of selection and development of easier, and effective methods.

Critical examination is conducted through a systematic and methodical questioning process.

Each activity recorded on the chart, whether it relates to processing or inspection, or material
handling, or to any other aspect, is picked up one at a time and is examined minutely. The
questioning process is considered under five major heads, namely the purpose, the place, the
sequence, the person and the means. These five aspects in critical examination are referred
to as five governing considerations.

Development and selection:

Development and selection stage concerns short listing of ideas generated at the critical
examination stage, testing each short listed idea for its technical and economic feasibility, and
making selection among the alternatives wherever choice exists. To develop ideas and to
ascertain their technical and economical feasibility, the method study practioner needs to
solicit the cooperation of personnel from different departments of the company. Various
techniques available for the development and selection purpose are: cost benefit analysis,
break-even analysis, investment analysis and critical path analysis.

Installation

Installation (or implementation) of the proposed method involves preparation of project report
on recommendations making oral presentation to the top management, securing approval of
the decision maker, assisting line management during implementation, arranging training of
workmen, and getting jobs (operations) retime after implementation, arranging training of
workmen, and getting jobs (operations) retimed after implementation.

Maintenance

Maintenance phase is the follow up phase after implementation, which serves as a monitoring
and control mechanism. It helps to ensure that the revised methods are set into concrete and
workmen do not revert back to old methods. It also provides an opportunity to the
practitioner to assess the effectiveness of the approach followed by him and makes changes in
the methodology (if required).