Efficient business processes are crucial for 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 low employee morale. The term Muda, which originated from the Lean Manufacturing philosophy, refers to 12 specific types of waste that can be removed from business processes. Recognizing these wastes is essential to achieve operational excellence.
The 8 Wastes, also referred to as the Process Inefficiencies, are: (1) Muda tai - Waste of Extra Products - Producing more than what is needed at any given time. This waste is a result of insufficient demand forecasting and inventory management. Eliminating overproduction waste can lead to remarkable cost savings and reduction in inventory holding costs.
(2) Waiting Waste - Wasting time caused by idle resources, machines, or people waiting for input.
