MUDA - as per the Japanese Management philosophy, identifies seven forms of waste in any business process or activity. While these may not always be relevant and applicable to all small businesses, a few may be very important to note and eliminate.
Here are the 7- forms of MUDA:
1. Transport Waste (unnecessary movement of goods or information)
2. Inventory Waste (excess stock, excess manpower etc)
3. Motion Waste (unnecessary physical movements of employees)
4. Waiting Waste (idle time and delays)
5. Overprocessing Waste (extra, non-value-adding steps & actions)
6. Overproduction Waste (producing more than demanded, creating options for decision making)
7. Defects (Correction) Waste (errors and rework)
There is also an eighth form of waste which is under utilization of skills and talents of human resource.
8. Skills (Unused Employee Talent) Waste (underutilization of employee skills)
By identifying and eliminating these 8- forms of MUDA, you can pave the way for a leaner, more efficient organization. Lean principles not only reduce waste but also improve product quality, reduce lead times, and enhance overall customer satisfaction.
The plan for eliminating MUDA is to start with one activity per vertical or department and eliminate it within a target time frame. Once this is done, you may move to the next set of activities. This will help you to eliminate each type of waste, your organization can then optimize it’s processes, allocate resources efficiently, and deliver greater value to your customers, thereby enhancing ROI (Return On Investment).