The 7 mudas...or different types of waste
Ties up capacity and thus causes extra costs
Defects and rework
If the parts produced do not come up to the required standard, they must be reworked or even scrapped. This ties up available capacity and causes extra costs.
Transportation - reduce distances
Transportation
Transportation does not increase the value of the product. This time could be used to carry out value-adding work.
Minimise motion and walking
Motion and walking
If tools and materials are not located exactly where you need them, production times increase.
Unnecessary waiting and searching
Waiting and searching
If you cannot carry on with your work or have to search for a tool or materials, valuable working time is lost.
Inventories of all types tie up capital
Inventories of all types
High stock levels and intermediate storage tie up capital.
Overproduction makes no sense
Overproduction
If more is produced than the customer needs, stock levels will increase along with waiting times, motion and transportation.
Avoid ineffective processes