Efficient business processes are crucial 5S for improvement any organization to achieve its goals and stay competitive in the market. However, process inefficiencies can arise due to various reasons such as inadequate resources causing slow productivity. The term Muda, which originated from the Lean Manufacturing philosophy, refers to eight specific types of waste that can be removed from business processes. Identifying these wastes is essential to achieve operational excellence.
The 8 Wastes, also referred to as the Eight Forms of Waste, are: (1) Muda tai - Waste of Extra Products - Producing more than what is needed at any given time. This waste is a result of incorrect demand forecasting and inventory management. Eliminating overproduction waste can lead to considerable cost savings and reduction in inventory holding costs.
(2) Inventory Storage Costs - Wasting time caused by idle resources, machines, or people waiting for materials.
