8 types of waste (or muda) in an organisation

Motion – poor design can severely affect productivity as workers and machines perform unnecessary motion through driving and walking.

Delay – increase in lead time as operations wait for material or as a result of line stoppages. Delays can also have a negative affect on customer service in the organization.

Conveyance – caused by poor layout and traditional batch production. Moving processes closer together can reduce this type of waste.

Correction – having to fix defective products and the cost associated with this type of waste.

Overprocessing – companies may sometimes lose touch with what customers require. Incremental performance improvements might not always fit in with customer requirements and add little or no value.

Inventory – there is both good and bad inventory. Unnecessary inventory not linked to demand can be classified as bad inventory.

Overproduction – producing things that you don’t sell. Overproduction is also the root cause of other types of inventory including waiting, motion and inventory.

Knowledge disconnection – poor flow of knowledge, ideas and creativity in the organization. Poor collaboration among supply chain partners can also lead to a knowledge disconnect in the organisation.

One comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.