Business Needs Vs Customer Needs
What is the Purpose of any any business?
Profit..... all the business is needs profit
Profit = Selling Price - Cost
What is the customer Need?
High quality, Less Price, Quick Delivery and Best Service
All together we can say...... Customer Wants "Value"
What is your opinion about customer needs and Business Needs?
- Customer Need is Value and Business Need is Profit
- Customer Need and Business need is profit only
Value Added & Non Value Added
Value is Defined by Customer.
So Value Added Means - For which activities customer is willing to pay
Then What is opposite to Value?
its called Non - Value Added or Waste.
Activities which consume our Time, Cost, Effort and still it is not add any value then it is called
"Non Value added or Waste"
Who defines the value?
3M - Muda , Mura & Muri
3M is a Japanese Words. Each Word Start From Letter "M".
Muda, Mura & Muri
Muda Means Waste (Non Value Added)
Mura Means inconsistency (Variation)
Muri Means Overburden (Strain)
What is the 3M?
Muda - Waste - 8 Types
There are 8 Types of Wastes in our Process.
These wastes are hidden in Manufacturing, IT ,Service, Hospitality and all the Business.
For Easy remembering Purpose we can call all these 8 Wastes together as "DOWNTIME"
1. D - Defects
2. O - Over Production
3. W - Waiting
4. N - Non Utilizing Human Talent
5. T -Transportation
6. I - Inventory
7. M - Motion
8. E - Excess Processsing
Are Know all 8 types of Waste?
- Over Production
- Non Utilizing Human Talent
- Excess Processing
Mura - Inconsistency
Mura means inconsistency in Process.
Variation in process parameter, Results, Performance and Etc.
Muri - Overburden
Muri Means Overburdden.
Over Loaded. Using More than its capacity.
Inconvenient working conditions
What is the Business Need?