Toyota Waste Management Case Study

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2.2. 3M (Muda, Mura, Muri) One of the goals of Toyota is eliminating waste. Toyota developed 3M Model to define wastes (unnecessary cost), and it includes all the parts of production not just non-value adding activities. Muda (Waste) Muda is a Japanese word implying any non-value adding process, in other words, waste. Considering that Muda involves unnecessary labour cost, time cost, storage cost, and material cost, Toyota concentrates on removing Muda to create greater efficiency. As Toyota Production System pursues the most efficient operation through waste removal, Toyota has classified the non-value adding activities in seven categories. These are also known as seven deadly wastes Seven Deadly Wastes 1. Defects This is a waste occurred by rectifying defective products. Correcting and repairing faulty products require additional costs of labour, material, and machines. For example, there was an extra cost of $589m for Toyota on fixing faulty products during recall crisis in 2009 (http://www.bloomberg.com/news/articles/2014-04-09/toyota-recalls-6-76-million-vehicles-worldwide-including-rav4). According to Toyota’s Seven Deadly Waste, this was a waste that was not necessarily spent if there were no defects of products. Toyota developed its own method, Jidoka, which aims for detecting and correcting production defects (Jidoka will be explained in 3. ?). 2. Over-production The waste of over-production occurs when there are more products produced than it is needed, and
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