Building Electrical installation

Level-II
Based on June 2022, Curriculum Version 1

Module Title: - Prevent and Eliminate MUDA

Module code: EIS BEI2 M10 0822
Unit one : Identify Muda and Problem
1. 1. The Concept of Muda/Waste
Definition of Waste/ Muda
Wastes or Muda are activities which use resources, time or cost without adding value. Waste/Muda is any
activity which consumes resources, such as money, time, energy, materials, etc, that does not create value
and can be eliminated. Value-added means those activities that change raw material into value for the
customer. Muda is a Japanese word meaning wasteful activity. It is anything unnecessary in operation. It
increases production cost and affects the quality of the product and also delivery time. Reducing or
eliminating Muda is, of course, one of the fundamental objectives of any quality-oriented person.

The three Categories of Operation

a. Net Operation/Value Adding Operation

b. Non-Val1ue Adding Operation

c. Muda/ waste

a. Net Operation/Value Adding Operation

Part of an operation that adds value to make parts and products or deliver service. In other words, it is part
of the operation that the customer exactly needs / willing to pay for.
Examples - Assembling and Welding, Printing/photocopying a document etc

b. Non-Value Adding Operation

Part of operation that adds no value but cannot be avoided rather it can be reduced.
Example Setting up / adjustments, loading paper to a photo copy machine/printer, etc
c. Muda
Muda is a Japanese word meaning Wasteful Activity which use resources, time or cost without adding
value. In other words, it is anything unnecessary in operation that affects the quality of the
product/service, productivity, delivery time and also production cost. Muda can be eliminated
immediately.
Example:- Unnecessary motion/searching for tools, unnecessary transportation of materials, over
production, Inventory, Waiting /idle time, making defects and over processing,etc.
Example

Very simple drill to elaborate the three Categories of Operation.

Operation:-To staple two papers using a stapler where the work place is disorganized.

Needed materials and tools for the activity

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  Two pieces of paper
 Stapler
 Staples
Table 1. 1 the result in the disorganized sample work place is summarized

No. Activities Time Category of the operation Action to be taken to How

taken eliminate/reduce

1 Searching for Stapler 35 Sec Muda Eliminate 5S(Set-in-order)

2 Searching for Staples 30 Sec Muda Eliminate 5S(Set-in-order)

3 Putting the Staples into the 8 Sec Non-Value adding Minimize Load staples
stapler ahead

4 Putting the two papers 3 Sec Non-Value adding

together

5 Staple the papers 2 Sec Net Operation

Lessons from the drill

Total time of operation=78 Sec

 Net Operation (Value adding) =2 Sec (2.6%)

 Non-Value adding operation=11 Sec (14.1%)
 Muda (Unnecessary operation) =65Sec (83.3%)
Can you imagine by how much the total time of the operation can be improved if we try to
eliminate the Muda and minimize non value adding operations by applying 5S?
Targets of Customer

Customer is the one who buys products/services from manufacturers/service providers. So the
customer does not bother how the manufacturer/service provider makes it. Now a days customers
have many alternative manufacturers/service providers to buy the same type of product/service
from and choose one that fulfills their targets which are listed below:-

 Customer needs better quality

 On time delivery
 Reasonable price

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Targets of Manufacturer/Service provider

The primary target of Manufacturers/Service providers is to earn profit. So as to meet his/her

target, he/she needs to satisfy the targets of customers in such a way by providing better quality
product/service on time and at a reasonable price. If he/she is able to do so, he can win
customers’ targets. Then to get higher profit the Manufacturer/Service provider needs to
minimize his/her costs by reducing/eliminating wastes and following effective working
procedures.

Figure 1. 1 following effective working procedures

Concept of Cost

Cost: - is the amount of money that is expended to accomplish a given task/operation.

Cost can be of Manufacturing or Service Delivering cost= (material + labor + facility + utility +
others) cost

Determination of the sales price of the product/Service

Sales price= (manufacturing or service delivery) cost + profit

Traditional Thinking of Price Setting

In traditional thinking of price setting, price is determined by the manufacturer/service provider

rather than the market itself.

When there is shortage of supply then the manufacturer raises selling price.

Figure 1. 2 Traditional Thinking of Price Setting

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Kaizen Thinking of Price Setting

In modern time, there are a large number of manufacturers/service providers delivering the same
type of product/service offering the customers a great deal of options to buy products/services.
Price is determined by the interaction between market demand and supply.
Manufacturers/service providers, who want to set selling, price above the market price,
customers will not be willing to buy their products/services. Manufacturers/Service providers to
be competent in the market they should provide Quality product/service on time and at the
market price. Since today’s economy is market based, we should focus on minimizing our costs
and not maximizing selling price to maximize our profit.

Figure 1. 3 Kaizen Thinking of Price Setting

Value
Value is defined by the next customer (Know your Customer’s Need). The next process is your
customer. The activity/effect exactly what the next customer needs is value adding activity.
There are two types of customers:-
 Internal customer
 External customer
Internal customer: - is the customer within a production line/service delivering sequence that is
next to the previous process and makes his/her own process.
External customer: - is the customer that buys the final out put product/service of the enterprise.

1.2. Methods for categorizing types of Wastes/Muda

A number of methods for categorizing types of waste have emerged. We will review some of
these models to get a deeper understanding of what waste is and how to find it and eliminate it.

 The three Mus

 The 5M + Q + S
 The flow of goods
 The seven deadly wastes

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 a. The Three MUs

In this way of thinking about waste, the goal is to achieve a condition where capacity and load
are about equal. In other words, there are just the right amount of workers, materials and
machines to make just the right amount of product that is being ordered and deliver it on time to
the customer. In Japanese this is expressed with the terms muda,mura and muri.
 Muda (waste) = Capacity exceeds load.
 Mura (inconsistency or variation) = capacity sometimes exceeds the load and the load
sometimes exceeds capacity.
 Muri (irrationality/physical or mental overburden) = load exceeds capacity.
By focusing improvement activities on eliminating the non-value added activities throughout the
production/service delivering process, and establishing production flow, a balance is naturally
achieved between capacity and load.

b. The 5M + Q + S

Another way of thinking about waste is to focus on the areas where waste may occur: the 5M
(man, material, machine, method and management), plus quality and safety. See the next figure.

Figure 1. 4 The detail explanation of 5M + Q

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Some of the main forms of waste that you will uncover by focusing on these aspects of production
include, walking, waiting, searching, material storage and handling, large machines, conveyers, wasteful
production methods, inventory, defective goods, errors, inspection,etc.

The Flow of Goods

A third way of thinking about waste is to focus on the flow of goods in production. The flow of goods
typically looks like this:

 Materials are procured

 Materials are retained in the warehouse

 Materials are conveyed to processes on the production line

 Materials are retained at the process equipment (WIP)

 Materials are picked up for processing

 Materials are processed

 Processed goods are set down and retained on the other side of the processing
machine (WIP)

 Goods are conveyed to an inspection point Goods are retained until inspection

 Goods are picked up and inspected

 Goods are set down and retained on the other side of inspection process

 Inspected goods are conveyed to the finished goods warehouse

 Finished goods are retained prior to shipment

Finished goods are delivered to the customer.

If you look carefully at this you will notice there are really only four things going on:

 retention
 conveyance,
 processing and
 inspection
Retention means stopping the flow of goods without adding any value to them. It is called stockpiling,
warehousing, temporary storage, and so on. Retention produces inventory: materials inventory before
processing, work-in process inventory, or finished goods inventory. Inventory occurs for variety of
reasons:
 The upstream process moves faster than the downstream process.

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  Goods flowing from several lines to one process or goods waiting to go from one process to
several different lines tend to pile up.
 There is waiting for machine changeover.
 Materials are purchased and processed for expected end-of-the month rushes.
 Materials are purchased in advance of orders.
 Spare parts are purchased in advance for after-sales service.
Retention adds cost without adding value. It is easy to think that inventory solves production flow
problems but in fact it just hides them. When you eliminate retention points the real problems in the
production flow must be addressed directly. This is the only path to waste-free production flow, or lean
production.
Conveyance refers to transporting goods without adding value. Movement between a retention
points is often called “conveyance” and movement between a retention point and a process is
often called “material handling.”
Processing means adding value. We either alter the raw materials or parts or we assemble parts
to add value. Improvement of processes includes identifying how a process can best fulfill its
purpose or identifying how a process can be done more efficiently. You will ask, why are we
drilling holes? Why are we putting in screws? You may discover many operations that can be
replaced by better solutions or even eliminated.
Inspection identifies and eliminates defects from the production flow. It does not add value
because it does not eliminate the source of the defect but only its result. Once you change your
focus from “finding” defects to “reducing” defects you are on your way to eliminating waste.
Ultimately, lean production aims to prevent all defects from occurring.
The Seven Deadly Wastes

The most well-known category of wastes is the “seven deadly wastes,” which captures the
essence of all the ideas discussed above and simplifies them to help you root out waste
throughout your production process. You will need strongly motivated people with an instinct for
seeing and removing waste. Identifying and eliminating these seven types of waste will forge the
path to lean production.

 Overproduction
 Inventory
 Motion
 Conveyance/Transportation
 Waiting/ Idle time
 Defect making
 Processing

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 Overproduction:- To produce things more than necessary in terms of type, time, and volume. It is called
“the worst kind of Muda” since it hides all the other wastes.

Inventory: - The situation where items such as raw materials, work in process and finished goods are
stagnant or which are not having value added to them. Some are located in the warehouses, and others are
in-process inventory.

Motion: - These are non-value adding movements or more than necessary movements of workers,
equipment, and machines, such as looking for goods, bending, stretching, walking, lifting, reaching etc.

Conveyance/Transportation: - It is unnecessary transportation of parts between processes caused by

unnecessary transportation distance, temporary storage, and relocations or re-piling up. Transportation
does not create any value added except for transportation companies. Transportation is usually difficult to
be totally eliminated but reducing is possible.

Waiting/ idle time: - Refers to both human and machine waiting.

This includes all kinds of waste of time such as workers or parts waiting:

 For an upstream process to deliver.

 For a machine to finish processing.

 For incoming parts or materials.

 For process that has a long wait time.

Defect making: - This includes defects, inspections for defects in-process, and claims,
rescheduling, and resource loss.

1.3. Processing: - This consists of processing and operations primarily unnecessary. It is

processing beyond the standard required by the custome

1.4. Causes and Effects of 7 types of Wastes/Muda

Table 1. 2 cause and effects of seven types of Muda/ wastes

Causes of Muda of Overproduction Effects of Muda of Overproduction

 Large-lot production Companies often have overproduction as a result of

 Anticipatory production (producing product large-lot manufacturing methods or mass production.
in advance of demand) there are several unfortunate effects of over
 Inability to achieve short changeover times
production:
with the large equipment used in mass
production systems  Anticipatory buying of parts and materials
 Creating enough stock to replace the number  Blocked flow of goods
of defective parts produced  Increased inventory
 Overstaffing or too much equipment  No flexibility in planning
 Machines that turn out parts too quickly  Occurrence of defects

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Causes of Muda of Inventory Effects of Muda of Inventory

 Acceptance of inventory as normal or as a  Waste of space

“necessary evil”  Needs for inspection, and
 Poor equipment lay out transportation
 Long changeover times  Expansion of working fund
 Shish-kabob or large lot production  Shelf life may expire
 Obstructed flow of goods  It ties up cash
 Anticipatory production  Makes FIFO inventory
 Defective parts management more difficult
 Upstream process is too fast for the
downstream process

Causes of Muda of motion Effects of Muda of motion

 Isolated operations  Increase in manpower and processing

 Low employee morale  Unstable operation
 Poor work layout  Increases production time
 Lack of training  Can cause injury
 Undeveloped skill

Causes of Muda of Effects of Muda of

Conveyance/Transportation Conveyance/Transportation
Causes of Muda of Waiting/ Idle time Effects of Muda of Waiting/ Idle time
 Poor layout  Waste of space
 Obstruction
Shish-skilledofworkers
flow  Waste of manpower,
Production time, & machines
deterioration
Causes
 Poorof Muda of Defect
equipment
Sitting to perform making
layout
operations Effects of Muda
 Increase
Expansion of
in of Defect making
thetransportation
in-process inventory
 Trouble
The needatfor
theconveyance
upstream process
systems is  Failed delivery
facilities dates
 Emphasis
 Capacity on downstream
assumed imbalances inspection  Increase
 Poor in
workflow
Occurrence material cost
continuity
of scratches
 No standard for
 Large Lot-production inspection work  Productivity deterioration
 Increase production time and cost
 Omission of standard operations  Increase
 wastes in personnel
time and energy& processes for
 Material handling and conveyance inspection
 Increase in defects and claims
 Invite reworking costs

Causes of Muda of Processing Effects of Muda of Processing

1.4.
 Inadequate study of processes  Unnecessary processes or operation
 Inadequate study of operations  Increase in manpower and man-hour
 Incomplete standardization  Lower workability
 Materials are not studied  Increase in defects
 Can reduce life of components

Waste/Muda identification
Muda type I non value-adding, but necessary for end customers. These are usually harder to eliminate because while
classified as non- value adding, they may still be necessary.

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Muda type II non value-adding and unnecessary for end customers. These contribute to waste, incur hidden costs
and should be eliminated.

Some of the benefits of identifying and eliminating waste/Muda

To the company

Benefits to the company include:

1. Cutting the hidden costs of production-It is estimated that 80 percent of production activities and associated
costs are non-value-added, or waste. When factories begin to focus on identifying and eliminating waste, the impact
on the bottom line is astronomical.

2. Increased customer satisfaction- Customer satisfaction rises as a direct result of implementing lean production.
When waste is eliminated from production, deliveries occur on time and product quality goes up.

To Shop floor workers

Benefits to individuals include:
1.Increased job satisfaction- No longer will you spend hours looking for missing tools, waiting for materials to
arrive, walking around piles of inventory, lifting and setting down heavy parts or tools, working in unsafe conditions
and all the other things you have to do that are not essential to your job. The frustrating non-value-added aspects of
your job will disappear and what you are trained to do and enjoy doing will be the major part of how you spend your
time.
2. Contributing to improvement- Your ideas about how to improve your job will be listened to and you will
participate in taking the frustration out of the workplace. Part of your job will be to find root causes and to create
solutions that last. You will not have to make short-term fixes or live with someonelse’s short-term fixes that no
longer solves the problems you face.
Procedure for Waste/Muda Identification
It is not easy to find waste when you look at the production line or the warehouse or an operation. If you have never
been involved in improvement activities you will find it even harder to discover waste that may be right in front of
you. Waste is everywhere, in every operation; it is so common and you are so used to it that it is hard to see.
The steps to effective waste identification are:
1. Make waste visible
2. be conscious of the waste
3. be accountable for the waste
4. Measure the waste
1. Make waste visible

Waste can be made visible in several ways such as:

 Shop layout analysis

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  Process flow analysis
 Take photos/video
Shop layout analysis and Process flow analysis

There are several tools you can use to analyze current conditions of shop layout and process flow quickly and
effectively. We will describe some of them.
The Arrow Diagram
The Arrow Diagram focuses on the flow of goods to discover waste. (Arrow diagrams have recently been renamed
value stream maps.) We include here a simple method for creating an arrow diagram to get a good understanding of
your production process and to see where the waste exists in your workplace.
The factors to be identified in your arrow diagram are retention, conveyance, processing and inspection. There are
specific symbols you use to indicate each of these aspects of a production process as indicated below:

Table 1. 3 showing symbols used in Arrow Diagram

Analysis factors Symbols Description Amount of waste

Retention When the work-in-process flow is stopped (for Large

other than conveyance, processing, or
inspection)

Conveyance When the work-in-process is moved from one Large

place to another

Processing When the work-in-process is changed There may be some waste

physically or chemically for added value in the process

Inspection When goods are inspected for conformance to Large

quality and dimensional standards

The Workshop Checklist for Major Waste Finding

The Workshop Checklist for Major Waste Finding allows you to identify in a more general way the seven types of
waste in a work area. You might want to use this checklist before using the detailed checklists. Checklists are good
tools for identifying waste and recording improvement ideas.

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Table 1. 4 Workshop Checklist for Major Waste Finding

Use these four steps to follow to discover and remove waste

I. Choose several processes or work areas and look for waste.

a. Using the above figure find the major forms of waste at each process.

b. Note the magnitude of each waste (Using the figure below).

II. Rank the improvements that are needed. Focus improvements on the process with the greatest total when
you add up the magnitude columns.
III. Choose the first process to be improved from the workshop checklist.
a. Using the more detailed waste-finding checklists provided, find more specific instances of waste.

b. Observe the types and magnitude of the detailed waste.

IV. Brainstorm improvement ideas and then carry out them

Figure 1. 4 showing Four Level of Magnitude of waste

1. Taking photos/Video: - Taking photos and videos and analyzing are also valuable techniques to find waste.

2. be conscious of the waste :When something is denied as waste, it also cannot be stopped.

3. be accountable for the waste: When one refuses to accept responsibility for the waste, then he/she will not
eliminate it.

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 4. Measure the magnitude of the waste

When the waste is not measured, people may think it is small or insignificant and therefore will not be motivated to
stop it. What is not measured is not improved. Appreciate its size and magnitude.

 Do time study by work element

 Measure Travel distance
 Measure Total steps
 Make list of items/products, who produces them and who uses them & those in warehouses, storages etc.
Tools and Equipment for Waste/Muda Identification

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 Tape/Meter
 Stop watch
 Photo Camera
 Video Camera
 Calculator

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Use of Tools and Equipment
Tape/Meter - is used to measure distances or lengths.
Stop watch – is used to measure operation/processing or waiting/idling times.
Photo Camera – may be necessary to take pictures, such as shop layout, for analysis.
Video Camera – may be necessary to record video of each work element to study and identify wastes, such as motion,
processing, waiting …etc.
Calculator – required making arithmetic calculations.

1.5. Reporting methods and formats/checklists for Muda identification

Table 1. 5 Overproduction Waste-finding Checklist

Overproduction Waste-finding Checklist

Process: Date:

Yes No Magnitude Causes and/or

Improvement plans
Description of waste

1 No production schedule of control boards.

2 No leveling of production schedule.

3 Productions not in synchronize with

production schedule.

4 Items missing

5 Defective goods produced.

6 Equipment breakdowns.

7 Too much manual assistance required.

8 Machines have too much capacity.

9 Lots are grouped in to batches.

10 Using “Push” production.

11 Caravan style operations.

12 Not balanced with next process.

Total

Table 1. 6 Inventory Waste-finding Checklist

Inventory Waste-finding Checklist

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Process: Date:

Yes No Magnitude Causes and/or

Improvement plans
Description of waste

1 Lots of inventory on shelves and floors.

2 Shelf and floor storage takes up lots of

space.

3 Inventory stacks block walkways.

4 In-process inventory accumulates within

individual operation.

5 In-process inventory is stacked up

between operators.

6 In-process inventory is stacked up

between processes.

7 Impossible to visually determine

quantities of in-process inventory.

Total

Table 1. 7 Motion Waste-finding Checklist

Motion Waste-finding Checklist

Process: Date:

Description of waste Yes No Magnitude Causes and/or

Improvement plans

1 Walking

2 Turning around

3 Leaning sideways

4 Bending over

5 Too wide arm movements.

6 Unnecessary wrist movements.

7 Left or right hand is idle.

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 8 Poorly utilized idle time.

9 Wasteful work piece set up/removal.

10 Non-standardized repetition of operations.

11 Worker operates using different motions

each time.

12 Operations divided into too many little

segments.

Total

Table 1. 8 Conveyance/Transportation Waste-finding Checklist

Conveyance/Transportation Waste-finding Checklist

Process: Date:

Yes No Magnitude Causes and/or

Improvement plans
Description of waste

1 Pile up during conveyance.

2 Change of conveyance devices in mid

transfer.

3 Previous and/or next process is on another

floor.

4 Conveyance requires manual assistance.

5 Conveyance distance is too long.

Total

Table 1. 9 Waiting/Idle Time Waste-finding Checklist

Waiting/Idle Time Waste-finding Checklist

Process: Date:

Description of waste Yes No Magnitude Causes and/or

Improvement plans

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 1 Work piece delay from previous process.

2 Machine busy status.

3 Missing item(s).

4 Lack of balance with previous process.

5 Lack of planning

6 Lack of standard operations.

7 Worker absence.

8 Too many workers (more than two).

Total

Table 1. 10 Defect Waste-finding Checklist

Defect Waste-finding Checklist

Process: Date::

Description of waste Yes No Magnitude Causes and/or

Improvement plans

1 Complaints from next process.

2 Defects within the process.

3 Human errors.

4 Defects due to missing part(s).

5 Defects due to wrong part(s).

6 Omission(s) in processing.

7 Defect(s) in processing.

8 No human automation.

9 No mistake-proofing.

10 No inspection within process.

11 Defects not addressed by improvement

activities.

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 Total

Table 1. 11 Processing Waste-finding Checklist

Processing Waste-finding Checklist

Process: Date:

Yes No Magnitude Causes and/or

Improvement plans
Description of waste

1 Process is not required for product

function.

2 Process includes unnecessary operations.

3 Process can be replaced by something less

wasteful.

4 Part of process can be eliminated without

detracting from product.

Total

Unit two: Analyze causes of a problem

2.1. Causes of a problem
Some have noted that problem-solving procedure is patterned and organized in a way that everybody is assured to
reach a solution in the most efficient way. Most anyone who uses this procedure can solve even difficult problems

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in a fast and efficient way. One uses an already existing procedure, while making use of one’s own specialized
skills; it will lead to an efficient way of solving problems.

Problem solving Procedure

1. Theme Selection: At the first stage, members select a theme from among the problems in the workplace a
theme concerning problems for which they think solutions would be most beneficial. This is to provide
clear vision on the objectives for the activity. Members ask themselves, “What kinds of problems do we
have and how do we improve them?”
2. Grasping Status and Goal Setting: After a theme is selected, members try to understand the current
situation of the problem. They list all of the possible problems related to the process, use data to validate
that the “problems” are indeed problems, select the priority problem, and again use data to define the extent
of this problem. The main objective of these steps is to gather information and grasp the status of the
problem so that members can establish a detailed set of goals.
3. Establishment of Activity Plan: Based on the data acquired in the second stage, the members establish an
activity plan, according to the 5W1H concept. In this concept, five W questions and one H question are addressed.
The members decide the issues to be tackled (what), the rationale for tackling them (why), the detailed time
scheduling of the program (when), and the place and resource allocation (where, and who and how).
4. Cause Analysis: In problem-solving processes, it is very important that results are examined in line with
causes, thus identifying the cause–effect relationship. Members consider all possible causes of the problem
and see if there is any correlation among them. Then they use data to verify the causes, narrow these down
to root causes, and finally select the most critical root cause. They then consider all possible solutions to
eliminate the most critical root cause, select the best solution, and establish a detailed plan on how to
implement it.
5. Their examination of countermeasures and their Implementation: After causes are identified,
countermeasures are examined, evaluated, and selected. This stage aims both to correct the root causes and
to establish the most effective measures to prevent the reoccurrence of the problems. All the people
concerned on the issue are gathered to discuss it, considering factors such as effectiveness, cost, condition
of restrictions, and impacts on the other factors. Members then implement countermeasures in daily
operations, according to the plan, and monitor the results.
6. Assessment of Effectiveness: Then an assessment is carried out to see whether the impediments have been
overcome or to what extent the initial objectives have been met. It is carried out together with evaluation
for further improvement of the work. The Circle identifies the tangible and intangible results, verifies those
using data, and compares them with the initial goal. Tangible results are results targeted through changes in
processes, whereas intangible results are those in areas such as improvement in employee learning skills
and education. If the results do not meet the goal, then the Circle needs to return to previous stages and
reexamine the processes.

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 7. Standardization and sustain operation: Finally after effective methods are identified, they are
standardized and made a permanent part of daily operations. Based on the standardization, members train
the people concerned. Also, new training manuals are created and disseminated among the people
concerned, and evaluation is carried out from time to time, aimed at ensuring that the process is maintained
appropriately. The last step in this stage is for the Circle to determine the next problem to tackle, which
may be chosen from the list generated in the beginning of the first QC Story.

Figure 2. 1 Stage of Problem solving Procedure

Cause and Effect Diagrams

Analysis Cause of the Problem Using 4M1E

This diagram composed of lines and symbols is designed to represent the relationship between effects and their causes. It is
sometimes called an Ishikawa diagram, after Dr. Kaoru Ishikawa who is considered the father of QC Circles. Others call it a
fishbone diagram due to its resemblance to a fish skeleton. It is a very effective tool for analyzing the causes of a problem,
even household problems like high consumption of electricity.

The Cause analysis means seeking the causes for the variability identified in fact analysis. One common approach is to
formulate a hypothesis, narrow the factors down, verify them with facts, and slowly work your way down to the underlying
causes.

The main objective of this stage is to confirm which measures can be taken for what kinds of problems. After a theme/ idea
is selected, the causes and effects of problems are to be identified. This is the most important stage of the process, as it
identifies the root causes of the problems and shows what needs to be changed.

In problem-solving processes, it is very important that results are examined in line with causes, thus identifying the cause–
effect relationship. Members consider all possible causes of the problem and see if there is any correlation among them. Then
they use data to verify the causes, narrow these down to root causes, and finally select the most critical root cause. They then
consider all possible solutions to eliminate the most critical root cause, select the best solution, and establish a detailed plan
on how to implement it.

How to precede cause analysis?

List all possible causes of the problem

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The Circle brainstorms on the causes of the problem. A very important question in this step begins with the word why. Why
the orders are incorrectly served? The Circle members enumerate their answers to this question until they have exhausted all
possible causes.

Think of the causes

Come up with as many factors as you can that could contribute to causing the variance (nonconformance) highlighted in fact
analysis.

How to construct cause and effect diagrams

Write the problem on the right side and box it.

Step1: Draw a main arrow from left to right, with the head of the arrow pointing to the problem.

Step 2: Identify all of the main categories of causes of the problem, for example, man, method, materials, machine, and
environment. In below figure 4, these factors were grouped as appliances, occupants, household procedures, and
household food supplies. Use branch arrows to connect the categories to the main arrow.

Step 3: Using twig arrows, connect the individual main causes identified in step 2 to their respective branch arrows.

Step 4: Identify the detailed causes of each main cause and connect them to the twig arrows, using even smaller twig
arrows.

Figure 2. 2 Cause and Effect Diagram using 4M1E

Example : why Electric Bill is High for house hold cause and effect diagram using 4M1E

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Figure 2. 3 cause and effect diagram using 4M1E Electric Bill High for house holds.

2.2. Eliminate the Most Critical Root Cause

Root Cause Analysis

Steps 1 - Analyze the diagram.

Analysis helps you identify causes that warrant further investigation. Since Cause-and-Effect Diagrams identify only
possible causes, you may want to use a Pareto Chart to help your team determine the cause to focus on first.

 Look at the “balance” of your diagram, checking for comparable levels of detail for most of the categories.
 Look for causes that appear repeatedly. These may represent root causes.
 Look for what you can measure in each cause so you can quantify the effects of any changes you make.
 Most importantly, identify and circle the causes that you can take action on.
Step 2: Select root causes

From the valid causes, the QC Circle selects the root causes. If there is a direct relationship between the cause and
the problem and this cause is seen repeatedly in the cause and effect diagram, then it is a root cause.

 Seek root cause relentlessly and narrow them down

 Narrow the long list of factors down to the critical cause.

 Use facts, data, past history, and personal opinions to focus on the most important factors.

 Draw on management and administrative techniques, as well as specialist expertise, to narrow down the
number of factors.

Step 3: Select most critical root cause

Among the root causes, the Circle selects the one that is most directly related to the problem. Voting can be used
to decide which root cause to work on.

Step 4: List all possible ways to eliminate the most critical root cause

Again the QC Circle brainstorms to generate ideas from the members. The leader must be able to challenge the
members to be creative, to let go of their preconceptions. If a QC Circle hits a mental block that is, it is not able to
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come up with ideas it leaves the list where everyone can see it (e.g., on a wall in the workplace) and add new ideas
easily. This helps provide a longer list for consideration at the next meeting.

Step 5: Select a best solution

The suggested solutions must be carefully evaluated and tested for potential complications. The QC Circle can use
matrix diagrams to select the best solution.

Plan the countermeasures action

Plan the countermeasures action so that the cause identified in cause analysis does not recur.

 Plan corrective actions for each confirmed cause.

 Do not worry about the practicality of the countermeasures actions at this point. Come up with a wide
range and large number of suggestions.
 Put the priority on those actions that your circle can implement on its own authority.
 Narrow down the countermeasures action plans and focus on the one(s) you want to implement.
 Actively solicit management and staff opinions.
Points to remember:
1. Make a table that shows the problems, the corrective actions, what you are trying to accomplish, how you
intend to accomplish it, and who is going to be responsible for doing it.
2. This is an excellent way to show the linkage between the problems and the countermeasure actions. It
shows clearly how the countermeasure actions address the problems identified in the cause analysis stage,
thereby highlighting the cause analysis’s effectiveness.
3. Be sure to indicate what the actions are intended to accomplish and who is going to do what.
4. Adding information on each of countermeasure actions helps every one understand what is being done,
how, and why.

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Unit three: Eliminate MUDA and Assess Effectiveness of the Solution
3.1. Adopt the basic principles for improvement
The ten basic principles for improvement

1. Throw out all of your fixed ideas about how to do things.

2. Think of how the new method will work- not how it won.
3. Don’t accept excuses. Totally deny the status quo.
4. Don’t seek perfection. A 50 percent implementation rate is fine as long as it’s done on the spot.
5. Correct mistakes the moment they are found.
6. Don’t spend a lot of money on improvements.
7. Problems give you a chance to use your brain.
8. Ask “why?” At least five times until you find the ultimate cause.
9. Ten people’s ideas are better than one person’s.
10. Improvement knows no limits.

3.2. Reduce and eliminate wastes

There are many practical ways to reduce waste. Work out your own ways of eliminating waste from your work, eg
by using left over materials from one job on the next one. This is usually cheaper than having to dispose of waste
and is better for the environment look for the shortest cabling route whenever possible and making sure you
comply with wiring regulations.

Effective Ways to Reduce Waste:

 Know what you're wasting.
 Stop wasting energy. Good news: we’re moving in the right direction.
 Stop wasting food. Food waste is a big problem.
 Stop wasting plastic.
 Stop wasting money.
 Stop wasting time.

3.3. Record results

Tangible and Intangible Results

The Circle (PDAC) identifies the tangible and intangible results, verifies those using data, and compares them with
the initial goal. Tangible results are results targeted through changes in processes, whereas intangible results are
those in areas such as improvement in employee learning skills and education. If the results do not meet the goal,
then the Circle needs to return to previous stages and reexamine the processes.
Identify tangible and intangible results
Tangible results are those that can be quantified, like when a defect rate is reduced by a certain percent. Intangible results on
the other hand are those that are qualitative, like when teamwork among the members is improved. The Circle must be able
to establish at this point that the project gains also bring them direct personal benefit.

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Compare the target value and the actual value (for tangible effects)
 See if the target value was met. See in below figures
 If the target value was not met, go back over the previous steps to see what went wrong, correct it, and try
again.
 The effect should be measured using the same QC methods and criteria as used in fact analysis.
 The effect should be confirmed for each corrective action.
 If the target has been determined as a first priority, make sure to see what impact this has had on the whole.

Verification of Results Using Various Types of Diagrams

Line graphs: are used to show actual situations given points in time. They may also be used to predict future trends. They
may be broken lines or straight lines.

Steps to construct a line graph

Step 1: Draw the horizontal and vertical axes of the graph, using the horizontal axis for the period and the vertical axis
for the value.

Step 2: Plot the points corresponding to the values.

Step 3: Connect the points.

Figure Line Graph

Figure 3. 1 line graph

Bar graphs: are used to show trends (e.g., of a product or service). They make use of bars whose lengths represent the size
of the factors under consideration. The bars may be positioned vertically or horizontally .
Steps to construct a bar graph
Step 1: Draw the horizontal and vertical axes of the graph, using the horizontal axis for the period and the vertical axis for
the value.
Step 2: Divide the horizontal axis into equally spaced vertical columns, each column representing a period.
Step 3: Divide the vertical axis into as many equally spaced horizontal rows as required, each higher row representing a
higher value.
Step 4: Draw the bars.
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 Figure 3. 2 shows bar graph

A pie chart: is used to denote relative portions of a situation; each slice of pie represents a percentage of the
whole.
Steps to construct a pie chart
Step 1: Draw a circle.
Step 2: Divide the circle into slices that correspond in size to the relevant percentages. For instance, if you
divide the circle into four equal slices, then each is 25 percent of the whole.
Step 3: Moving clockwise from the topmost part of the chart, arrange the items in order of percentage size,
unless another order is inherently logical.
Step 4: Indicate the name of the item and its percentage.
Step 5: Consider what color or pattern to use for identification of items.

Figure 3. 3 show pie graph

The by-objective bases of selecting a graph:

When comparing the size of numbers

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  bar graph, band graph
When showing a change over time
 line graph
When giving a breakdown
 pie graph, band graph
A scatter diagram: examines the relationship between paired data. This tool is usually used by the QC Circle
when it wants to establish the relationship between cause and effect, the relationship between one cause and
another or a relationship between one cause and two causes.

Examples include the relationship between an ingredient and the hardness of a product, the relationship between
the speed of cutting and the variation in the length of parts cut, the relationship between the level of illumination in
a room and mistakes in validating a bank transaction slip.

The scatter diagram is used when a number of people or procedures are producing widely varying results. The
scatter diagram may show that two variables have positive correlation, have negative correlation, or have no
correlation at all.
Steps to construct a scatter diagram:
Step 1: Collect data samples of pairs whose relationship is to be studied. Enter these data in a data sheet .
Step 2: Draw a vertical axis (effect); calibrate it from smallest to largest value (from top to bottom).
Step 3: Draw a horizontal axis (cause); calibrate it from smallest to largest value (from left to right).
Step 4: Plot the paired values. If values are repeated, make concentric circles (in the graph indicated as pink).
Step5: Plot data in a graph, with material content.

Figure 3. 4 shown below common Scatter Diagrams

Affinity diagram: is a tool to clarify the nature of an uncertain problem or chaotic event by coordinating ideas and
obtaining concepts through the integration of relevant verbalized data on the basis of affinity. Preparation of an
Affinity Diagram When preparing an affinity diagram, two approaches are recommended: one by individual
action, the other by group action. As for management or staff personnel, individual preparation is better when
trying to do the following. Identify the facts related systematically to the chaotic and unknown problems or areas.
Summarize one’s own ideas without interference of others. Establish one’s own creative ideas that may be in
conflict with conventional ones.
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Preparations of affinity diagram
 Determine a theme.
 Collect data by way of brainstorming.
 Get an understanding of all verbal information collected from every member. In some cases the data
must be rewritten to prevent any misinterpretation or misunderstanding.
 Do the same as for individual preparations’ steps C and D.

Figure 3. 5 In Figure could show affinity Diagram for House Cleaning

Page 29
Unit Four: Prevent Occurrence of Wastes and Sustain Operation
4.1. Preparation of standards
The Concept of Standard Operation Procedure (Sop)
Standard defines the acceptance criteria for judging the quality of an activity. In the Kaizen context Standards
refers to rules, procedures and guidelines for activities carried out in the workplace.
“No standard, There can be No Kaizen”

 There can be no basis for comparison (before/after).

 One cannot objectively tell if there was a difference or change.
 No improvement is possible in regards to Time, Quality, Quantity, Cost, etc.
Standardization

 Formulation, publication, and implementation of guidelines, rules, and specifications.

 Is a standard specification, unit, instruction or something that is understood globally?
 Standardization promotes effective teamwork by teaching employees similar terminology, skills and rules
of play at the work place.
Why Implement Standard Work?

 To make it possible to identify and eliminate variations in operators’ work “Variability is the breeding
ground of defects, and high costs.”
 Team member own choices are dramatically reduced, eliminating the “Do it your own way”.
 Abnormal conditions are clearly defined and tracked.
 To sustain the gains achieved from improvement activities.
 To provide a baseline for future improvement.
Kaizen will succeed only if you pay regular attention to Standard Work.

Standardization

 Reduces Variation
 Enables Flow
 Eliminates Waste
 Fuels Continuous Improvement
Standardized work place and working materials

Figure 4. 1 show the Standardized work place and working materials

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Steps to Standardization

1. Identify and set a standard

 The standard method must be established and should be regarded as a “good” method.
 But the standard method is only “good” - not “best”. Each method challenges us for a better way.
 The consistent updating of Standard Operations is the cornerstone of Continuous Improvement.
2. Ensure everyone in organization understand & commit to the standard.
3. Confirm the standard is reasonable & fair.
Continuous improvement

a. Improving every aspect of every activity every day – forever

b. Think of continuous improvement as a journey rather than a destination.
c. Continuous Improvement enhances “people supportive practices”
 Provides new skills to employees, empowering them to design and improve their own work.
 By standardizing on a new method, it gives people the ability to reduce variation.
Continuous Improvement is needed:

 Increased competition.
 Customer demands for lower prices.
 Expectations for higher quality.
 Changing technologies.
 Need for improved participation and self-direction.
 Wider base of knowledge.
 Safer, better workplace.
 Zero accidents.

Figure 4. 2 Kaizen and Standardization

Continuous Improvement Process Steps

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 1. Observe current method.
2. Document current method.
3. Identify improvements (steps to eliminate).
4. Implement improvements.
5. Validate quality and productivity of new method.
6. Standardize new method.
7. Document “Before” and “After” conditions.
8. Recognize achievements.
9. Look for next improvement.

Clear &
Understandabl
Figure 4. 3 Standardization as waste Elimination tool
e workplace

Standard Operation and Its Benefits

Standard Operation

 It deals with detailed procedures to perform an operation efficiently by anyone assigned for the task.
 An efficient production system which eliminates wasteful procedures by bringing together a number of
jobs focused on the movements of workers.
 In the KAIZEN context standard operation means creating a consistent way that an operation or a task is
performed so that anyone can perform it.
’U’ shaped work units.

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  Eliminates isolated islands.  Increases visibility
 Integrates processes.  Enhances cross training
 Reduces transport and  Improves safety
handling of parts.  Reduces inventory
 Enhances teamwork.
Standardized processes are intended to:

 Ensure customer satisfaction  Ensure consistent quality

 Drive consistent output  Drive consistent cost and time
Benefits of Standard Operation

 Ensure Safety  Stabilizes delivery times

 Stable Quality  Eliminates Wastes
 Reduce cost & Increase  Simplifies process
Productivity  Create base line for KAIZEN
 Visualize what is normal vs.
abnormal
Three Elements of Standard Operation Procedure (Sop)

a. Take time
 The rate at which the end product or service must be produced and delivered in
order to satisfy a defined customer demand within a given period of time.
 Is the time that is allotted for making one unit of product?
b. Standard in process stock
 It is the minimum quantity of parts always on hand for processing during and
between sub-processes.
 It allows workers to do their jobs continuously in a set sequence, repeating the
same operation over and over in the same order.
c. Operating Procedure
 Enter the layout of facilities and pallets in the sheet.
 Observe the target operator closely.
1. It is necessary to talk about the Operation Base (OB) and Starting Point (SP) with
the target operator in advance.

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2. If the “waiting” is expected during operation, it is also necessary to decide the
point of waiting and the timing to resume the operation.
 OB = the place the operator is located when starting the operation
 SP = the tool showing the timing when the operator start working.
3. Enter operator’s movement using numbers and flow lines in line with the
procedure.
4. Record work elements and time measured in numerical order.
5. Enter the quantity of Standard In-Process Stock (*) in the bottom of the format
6. Enter the items about quality inspection and safety operations in symbols, if any.
7. Enter the information necessary to help control and make follow up actions
afterwards.

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Table 4. 1 An Example Standardized Work Chart

Plant: ACME Product: Pinion gear

ACME Corp.
Area: Machining Op. 1 of 1
Standard Work Chart Process: Exercise Pg. 1 of 1
Date: By: Approved by: Shifts: 2 Takt Cycle
2- 2- 2010 J ohn T. Alex S. Volume: 600 Time: 44.5 sec. Time: 44 sec.

Auto Time

Walk Time
Wait Time
Man Time
Working sequence Safety Swip Quality
Number Major Steps Walking
QC
Return to start
1 Pick up raw material 1 - -
2
2 Unload, load part and start M/ C GC618 4 38 -
2 CH- 238 CH- 618
3 Unload, load part and start M/ C GC234 6 7 -
2
4 Unload, load part and start M/ C GC144 6 38 -
2
5 Unload, load part and start M/ C GC145 5 30 - 3 2
2
6 Unload, load part and start M/ C TS117 7 3 - Raw
2 CH- 144 1
7 Pack FG in pallet 1 - - Material
2
4
Raw
7 Material

5 6

CH- 145 CH- 117

30 0 14

“Standard Operation Sheet” is subject to change after examining the effects of the corrective measures
at the working site discussing with operators there.

Principle of Standard Formation

 Enhanced: Standard of Improved situation.

 Acceptability: Acceptable Standard to all employees.

 Practicality: Easy to Implement Standard.

Standardizing New Improvements

If the goal is achieved, the new procedure should be standardized. If the goal is not achieved, then the
QC Circle must retrace its steps, starting with analysis of the causes. Standardization ensures that the
solution stays permanent.

Incorporate the most effective corrective actions into your operational and other standards in order to
sustain the effect. In standardizing, seek to integrate and simplify procedures so that anyone can follow
them and achieve the same results.
 Key points

 Standardize effective corrective actions.

 Develop operating procedures into rules. Establish or revise standards, specifications,

rules, and manuals.

 Be sure that the standards specify who, when, where, what, why, and how, and are
easy to implement.

 Look at the relationships between the operation under review and the upstream and
downstream processes. Standards should also be revised in other departments as necessary.

 Specify when the new standards are to go into effect.

Points to remember in using the 5W1H in standardization

1. Decide clearly on the 5W1H category items and who is going to be responsible for
doing what. Be sure to include items to keep the problems from recurring.

2. State explicitly what operating standards are to be followed and what the standard
times are, thereby making the standard themselves explicit.

1. Draw up quality and check sheets and exercise ingenuity to see the management tools
used.
2. Draw up a graph of actual process progress and show explicitly that affect is being
sustained.
Standardization Procedure

Once a corrective action has been incorporated into the standards, follow the registration
procedures and make it official.

 Be sure to follow the official procedures for establishing, revising, and discontinuing
standards.
 Management approval is prerequisite for establishing or revising any operating
standards. Take the time to explain the new standards and the reasons for them to
everyone's satisfaction.
 Do not revise or discontinue standards until after you have cleared this with the
upstream and downstream departments that will be affected.
 4.2. Prevent occurrences of wastes
Waste prevention involves strict avoidance of waste generation. It also involves qualitative and
quantitative reduction at the source of waste production. Reuse of products is also a key aspect of
waste prevention. Waste prevention does not include recycling of materials and separate waste
collection. Waste prevention is also known as source reduction. However, waste prevention is
the first and often the most important step in waste management hierarchy and a key factor in
efficient and sustainable resource management. According to the Waste Framework Directive,
reducing the amount of waste generated at source and reducing the hazardous content of that
waste is regarded as the highest priority. Waste prevention programs involve 3 key steps -
reduce, reuse, and donate or exchange.
We prevent them from becoming sources of waste we will be right back where we started in no time at
all. That is one reason why one of the very first things mentioned about discovering waste adopting the
right attitude. If everyone is paying attention to keeping waste from taking hold, then you have a good
chance of sustaining production flow. There are four important methods you can use for maintaining a
waste-free production environment:

 Standardization
 Visual controls
 Auditory controls
 5W and 1H Sheet
Standardization

The primary purpose of standardization is to create and sustain a waste-free process. Standardization
means establishing standard procedures for every operation so that anyone can understand and use them –
and everyone does. There are many aspects to standardization. Standards must be created, documented,
well-communicated, adhered to, and regularly re-assessed.

Standards are required for:

 Machines
 Operations
 Defining normal and abnormal conditions
 Clerical procedures
 Procurement
Visual and Auditory Controls

One way waste enters into operations is when standards are not improved to meet changing
conditions. Even standardization fails to sustain waste-free production if not systematically
updated to take advantage of new materials, new technology, and worker improvement ideas. If
the slightest defect occurs, the standard must be reconsidered.

The factory is a living thing and must constantly be adjusted to stay responsive to changes in the
environment. Responsiveness must be systematic so that problems are addressed without losing
the solid foundation of the waste-removing methods already established. The best way to do this
is through visual and auditory controls.

Red-tagging: put a red tag on everything in the factory that is not necessary to the current
operations of the production process. After everyone has had time to notice red-tagged
items and claim any that are needed in their area, remove the remaining red-tagged items from
the environment. Management can decide what to do with them: they can be sold, thrown out, or
moved to a location where they are needed. Always keep the production floor free of any thing
that is not directly part of the production process.

Signboards- The purpose of workstations and the names of the workers who operate them should
be displayed at every processing point. Signboards can also identify equipment and processes so
that everyone knows what things are and what they are used for. Standard quantities should be
included on supply bins or carts. The products produced on each line or in each cell can be
displayed, and so on.

Outlining- Boarders around tools and equipment, big and small, help people find and return
things. Outlining can also create patterns of work-flow by using the floor to indicate where and
where not to place things, where to walk, safety zones and danger zones. Outlining to indicate
goods to be processed or parts that have been processed becomes a signal to material handlers for
replenishing or for delivery to the next process.
An dons- Different colored lights can report the status and needs of a system and signal when
defects or abnormal conditions occur so that problems can be solved immediately.
Kanban- These little signs accompany work-in-process. They are the flexible production
instructions or work orders that trigger materials supply and production in a pull system, the
hallmark of lean manufacturing.
Pitch and Inspection Buzzers- These indicate when operations get out of sync with demand or
when defects are around. They keep awareness focused on solving problems and keep waste
from taking root.
The 5W and 1H Sheet
The 5W and 1H (five “whys” and one “how”) is a powerful method and one that never stops being
wasteful in sustaining a waste-free production environment. The 5W and 1H sheet is a tool that will help
you s

ystematically apply this method.

Figure 4. 4 showing 5W and 1H Sheet

 Figure 4. 5 showing Improvement in Drill Bit Storage

Five Key Concepts for Asking “Why” and “How”

Following these principles suggested by Hiroyuki Hirano when you are asking the 5”whys” and 1”how”:

1. Look with the eyes of a child- All improvement begins with the first why. Never cease looking and
never cease asking that first why. As you practice this, the result will follow.

2. Remember three essentials for fact finding- (1) Go to where the problem occurred.(2) See the
problem first-hand. (3) Confirm the facts based on your own observations.

3. Be a walker and an observer- Supervisors and managers must continually work through the factory to
see that standards are being followed and to practice seeing waste. Operators need to continually examine
their own operations to stay alert for new problems and new ideas for solving them that may come to
mind as they do their jobs.

4. Break down fixed thinking- If you ask “why” and “how” often enough you will eventually run out of
“known” answers. At this point you may reach internal mental resistance to the discovery of what you
don’t know. Get in the habit of asking why and how beyond this point of fixed thinking. That is when you
will make the big discoveries about waste and how to solve it.

5. Do it now- Don’t wait. Put your ideas into practice immediately!

4.3. Create waste-free workplace

7 ways to create a waste free workplace
1. If it ain’t reusable, try try again.
2. Create an anti-printing culture. Print smarter and go (nearly) paperless.
3. Join the Spare Harvest movement.
4. Encourage ‘bring your own’ lunch and snacks.
5. Pre-cycle your work products.
6. Reuse, recycle and discover better ways of doing things.
7. Purchase wisely. Wherever possible by secondhand equipment and machines