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The table below lists the seven wastes as the target for continuous improvement production process.1. Waste of Overproduction : eliminate by reducing setup times synchronizing quantities and timing between processes, processes compacting layout, visibility and so forth. Make only what is needed now.
2. Waste of Waiting : Eliminate through synchronizing work flow as much as possible and balance uneven loads by flexible workers and equipment.
3. Waste of Transportation : Establish layouts to make transport and handling unnecessary if possible. Then rationalize transport and material handling that cannot be eliminated.
4. Waste of Processing itself : First question why this part or product should be made at all them why each process is necessary. Extend thinking beyond economy of scale or speed.
5. Waste of Stocks: Reduce by shortening setup times and reducing lead times by synchronizing work flows and improving work skills and even by smoothing fluctuation in demand for the product. Reducing all the other wastes reduces the waste of stocks.
6. Waste of Motion : Study motion for economy and consistency, economy improves productivity and consistency improve quality. First improve the motions then mechanize or automates otherwise there is danger of automating waste.
7. Waste of Making Defective Products: Develop the production process to prevent defects from being made so as to eliminate inspection. At each process accept no defects and make no defects. Make processes failsafe to do this. From a quality process comes a quality product automatically.
Discuss how organisational commitment encourages knowledge sharing.
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FIXED COST=40000, VARIABLE COST=20 PER UNIT, SELLING PRICE=100 PER UNIT. TURNOVER REQUIRED FOR A PROFIT OF RS.30000
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