{"id":30976,"date":"2026-01-20T11:54:37","date_gmt":"2026-01-20T04:54:37","guid":{"rendered":"https:\/\/solwer.com\/reduce-costs-by-eliminating-muda\/"},"modified":"2026-03-31T15:29:23","modified_gmt":"2026-03-31T08:29:23","slug":"reduce-costs-by-eliminating-muda","status":"publish","type":"post","link":"https:\/\/solwer.com\/en\/reduce-costs-by-eliminating-muda\/","title":{"rendered":"Easily Reduce Production Costs: Find and Eliminate MUDA Precisely"},"content":{"rendered":"\t\t
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Easily Reduce Production Costs: Find and Eliminate MUDA Precisely<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Reducing production costs does not always require starting with new machinery or major restructuring. Often, the most significant wasted costs come from \u201cwaste\u201d within daily work processes, which in the Lean concept is called MUDA. If we can \u201cfind it\u201d and \u201celiminate it precisely,\u201d factories can substantially reduce costs without needing a high investment budget.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What is MUDA ?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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MUDA (Muda) is a Japanese word that means <\/span>\u201cWaste\u201d<\/b>. According to the concept of the Lean Manufacturing system, it refers to activities or steps that use resources but do not create any value for the customer, whether it is time, labor, machinery, space, or capital.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What are the 7 Wastes of MUDA?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1. Overproduction <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Producing more than the actual market demand or manufacturing without supporting orders is considered the most severe form of waste, as it increases costs without creating any value. Overproduction leads to the accumulation of large amounts of stock, requiring increased storage space, and carrying the risk of goods expiring, becoming damaged, or unsold. Furthermore, it unnecessarily ties up capital in inventory, severely impacting the company’s cash flow.<\/span><\/p>

Preventing Overproduction involves producing based on actual demand and using systems like Just-in-Time (JIT) to ensure a smooth process flow that does not create unnecessary inventory burdens.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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2. Waiting <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The waste from waiting is the period of time when no value is created, such as waiting for materials, waiting for machinery, waiting for document approval, or waiting for work orders. The time lost from waiting causes process delays, creates bottlenecks, and significantly increases hidden costs.<\/span><\/p>

This waste often arises from poor planning, untimely communication, or machine breakdowns. The solution can be achieved by improving planning, creating work standards, and utilizing technology to help reduce waiting at each point of the process.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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3. Unnecessary Transportation<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Transportation is the movement of raw materials, goods, or equipment from one point to another without adding value to the product, such as moving workpieces to a distant warehouse or frequently transporting documents between departments.<\/span><\/p>

Although transportation is unavoidable, excessive movement wastes time, labor, and costs, and also increases the risk of damage to the goods. The approach to reducing this waste is to appropriately adjust the factory layout, consolidate storage points closer to the production line, and design the workflow to be as short as possible.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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4. Over-Processing<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Over-Processing is working more than what the customer requires or using unnecessary steps, such as repeated unnecessary checks, using overly complex tools, or excessive product finishing beyond customer expectations.<\/span><\/p>

This waste increases cost and time without adding value to the product. The solution is to truly understand the customer’s needs, design the process to be simple, and eliminate unnecessary steps from the system.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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5. Excessive Inventory <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Storing too much raw material or finished goods is a waste found in many organizations and often occurs alongside Overproduction. Large amounts of stock require increased storage space, high maintenance costs, and risk the goods deteriorating, becoming obsolete, or lost.<\/span><\/p>

Furthermore, excessive stock also conceals real problems, such as unbalanced production or quality issues. Proper stock management using the JIT system helps reduce costs and increases the flexibility of the production process.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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6. Unnecessary Motion <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Motion is the movement of people or equipment that is excessive and unnecessary, such as walking too far to pick up a tool, repeatedly bending down and standing up, or handling poorly arranged equipment.<\/span><\/p>

Even small movements, when continuous, can lead to fatigue, wasted time, and reduced work efficiency. The approach to reducing Motion is to appropriately design the workspace, arrange tools in order of use, and use assistive devices to minimize movements that do not create value.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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7. Defects <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Defects are products or services that do not meet quality standards and must be corrected, repaired, or discarded. This leads to higher costs in terms of materials, time, and labor. Additionally, it causes late delivery and creates customer dissatisfaction.<\/span><\/p>

The causes of defects may arise from incorrect production processes, poor quality control, unclear communication, or the use of unsuitable materials. Reducing Defects can be done by creating work standards, implementing appropriate quality checks, training employees, and continuously improving processes.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Why Does Eliminating MUDA Greatly Help Reduce Costs?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Eliminating MUDA (waste) does not just make operations <\/span>\u201clook leaner,\u201d<\/b> but it has a very clear and direct impact on a factory’s costs, profit, and competitiveness. The more MUDA is eliminated, the more hidden costs, which were previously unseen, disappear.<\/span><\/p>

Below are the main reasons why eliminating MUDA greatly helps reduce costs, with a detailed explanation of each point.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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1. Reduce Cycle Time<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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When waste is reduced, the time one piece of work takes to travel through the system from start to finish decreases accordingly.<\/span><\/p>

  • Reduce Waiting:<\/b> When there is no waiting for materials, machinery, documents, or process approvals, work flows more continuously, clearly shortening Lead time and Cycle time.<\/span><\/li>
  • Reduce Unnecessary Steps:<\/b> Eliminating steps that do not create value for the customer, such as unnecessary double-checking, redundant data entry, or pointless transportation, reduces the overall process time.<\/span><\/li>
  • Resulting Outcomes:<\/b>
    • Faster delivery<\/span><\/li>
    • Reduced production line bottlenecks<\/span><\/li>
    • More accurate production planning<\/span><\/li>
    • Faster customer response<\/span><\/li><\/ul><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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      2. Reduce Labor and Operating Costs <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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      When MUDA is reduced, the work performed by employees and machinery becomes more <\/span>\u201cvaluable,\u201d<\/b> instead of spending time on unnecessary tasks.<\/span><\/p>

      • Reduce Rework, Correction, and Defects:<\/b> If Defects are reduced, employees do not waste time on Rework or repeat production. Machinery does not need to run extra hours to compensate for scrap, reducing total working hours, OT (Overtime), electricity costs, and machine maintenance costs.<\/span><\/li>
      • Increase Labor Efficiency (Productivity):<\/b> By reducing Motion and Waiting, employees spend more time on actual production, increasing the volume of output per person per hour, and lowering the unit labor cost.<\/span><\/li>
      • Optimize Capacity Utilization:<\/b> Reducing the time machinery stops waiting (Idle) due to lack of raw materials or waiting for setup means that when the machine runs efficiently, the unit cost also decreases.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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        3. Reduce Inventory and Defects<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        Excessive stock and defects are major cost drains that many factories are unaware of.<\/span><\/p>

        • Reduce Work-in-Progress (WIP) Stock: When work does not pile up excessively between stations, it helps reduce storage space, the use of racks, containers, carts, and reduces the effort for searching for work and managing related documents.<\/span><\/li>
        • Reduce Excessive Finished Goods and Raw Materials: The longer goods are stored, the greater the risk of damage, deterioration, obsolescence, or the need for clearance discounts. Capital becomes tied up in inventory instead of becoming cash flow.<\/span><\/li>
        • Reduce Defects and Correction Work: Reducing Defects means not wasting raw materials on faulty production, not wasting labor and time on corrections, and not losing opportunities due to late delivery or customer returns.<\/span><\/li><\/ul>

          The overall result is a significant reduction in costs related to warehousing, raw materials, and repair\/correction work.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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          4. Increase Production Speed and Overall Throughput <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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          When MUDA is eliminated, the workflow becomes much \u201csmoother,\u201d increasing the number of workpieces produced per period.<\/span><\/p>

          • Continuous Work Flow (Flow):<\/b> There are no blockages due to waiting in line, waiting for approval, or waiting for raw materials, allowing the entire production line to run better together.<\/span><\/li>
          • Use Existing Resources to Produce More:<\/b> With the same people and machinery, when waste is reduced, the Output immediately increases, meaning the unit cost is lowered.<\/span><\/li><\/ul>

            Support More Orders Without Major New Investment:<\/b> Instead of having to buy new machinery or hire more people, increasing efficiency by reducing MUDA allows the factory to support higher sales volumes with existing resources.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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            5. Increase Customer Satisfaction<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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            Eliminating MUDA does not only help internal costs but also directly impacts the customer experience.<\/span><\/p>

            • Timely and stable delivery:<\/b> Short and certain Lead time makes it easy for customers to plan and increases their confidence in the factory.<\/span><\/li>
            • Consistent quality:<\/b> Reducing Defects and waste, and continuously controlling the process, makes quality stand out and stable, resulting in fewer customer claims.<\/span><\/li>
            • Reduced costs offer competitive pricing opportunities:<\/b> When the unit production cost decreases, the organization can<\/span>
              <\/span>increase profits or use part of the savings to reduce prices and be more competitive.<\/span><\/li><\/ul>

              Create opportunities for new work:<\/b> Customers satisfied with quality, price, and delivery often increase orders or recommend other customers, leading to sustainable business growth.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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              \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\u0e27\u0e34\u0e28\u0e27\u0e01\u0e23\u0e01\u0e33\u0e25\u0e31\u0e07\u0e17\u0e33\u0e07\u0e32\u0e19\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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              How to Find MUDA?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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              To effectively reduce MUDA, it is not about \u201cguessing,\u201d but requires the combined use of data, systems, and actual on-site work. The recommended approaches are as follows.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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              1. Process Mapping (Process Flow Chart \/ Work Flow) <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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              Start by “seeing the overall picture” of the work flow.<\/span><\/p>

              • Draw a chart from receiving the order, receiving raw materials, production, up to delivery.<\/span><\/li>
              • Identify every step: who does what, how long it takes, what is used as Input, and what is the Output.<\/span><\/li>
              • Clearly separate which steps are <\/span>\u201cValue-Added\u201d<\/b> and which steps are <\/span>\u201cNon Value-Added.\u201d<\/b><\/li><\/ul>

                When the overall picture is visible, you will start to see where there is waiting, where there is transportation back and forth, where there is unnecessary repeated checking, repetition, or seemingly redundant steps. This is the starting point for finding MUDA on a large scale.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                2. Gemba Walk (Go to See the Actual Thing at the Actual Workplace)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                The principle of Gemba is \u201cGo to see the actual thing, in the actual place, with the person doing the actual work.\u201d<\/span><\/p>

                • Management or the improvement team must go down to the worksite, not just look at reports on the desk.<\/span><\/li>
                • Spend time observing the real work of employees on the production line or support units.<\/span><\/li>
                • Observe movement, handling, waiting, walking back and forth, and transportation.<\/span><\/li><\/ul>

                  Often, MUDA is not immediately reflected in the numbers, but it becomes very clear when \u201cstanding and watching\u201d at the worksite, such as:<\/span><\/p>

                  • Employees having to walk repeatedly to pick up equipment.<\/span><\/li>
                  • Having to wait for document approval.<\/span><\/li>
                  • Sending work back and forth many times.<\/span><\/li><\/ul>

                    Consistently performing a Gemba Walk allows the team to see the real problems that occur in the daily life of the worksite.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                    3. Collect Cycle Time \/ Lead Time Data<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                    After seeing the overall picture and actual behavior, there must be \u201cnumbers\u201d to confirm what the bottleneck is.<\/span><\/p>

                    • Measure the time used in each step of the process (Cycle Time).<\/span><\/li>
                    • Measure the time from receiving the order until product delivery (Lead Time).<\/span><\/li>
                    • Compare the actual time with standard time or the desired target.<\/span><\/li><\/ul>

                      When these data are available, it will be visible which steps take an abnormally long time, which points are the bottlenecks that slow down the entire line, and which steps have more waiting time than actual work time. This data helps confirm where MUDA is and where to start fixing it first for maximum value.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                      4. Use the 5 Why Questions to Find the Root Cause<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                      When a problem or MUDA is found, the next step is to find the true root cause, not just treat the symptoms.<\/span><\/p>

                      The 5 Whys technique involves repeatedly asking the question \u201cWhy?\u201d approximately 5 times, or until the real cause is found, for example:<\/span><\/p>

                      • Why are there many defects? Because the machine speed is set too high.<\/span><\/li>
                      • Why is the machine speed set too high? Because production needs to be accelerated to meet the target.<\/span><\/li>
                      • Why does production need to be accelerated later? Because raw materials were delivered late.<\/span><\/li>
                      • Why were raw materials delivered late? Because the purchasing plan was inaccurate.<\/span><\/li><\/ul>

                        It can be seen that merely solving \u201creducing machine speed\u201d might help reduce defects, but it does not solve the root cause issue of purchasing planning. Using the 5 Whys helps reveal the actual root cause and allows for the selection of a more sustainable solution.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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                        5. Use Loss Tracker for Detailed Search <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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                        Loss Tracker is a tool for collecting data on \u201cwasted time\u201d in each activity on the worksite, to find out where, how much, and what losses should be addressed first. Its importance lies in helping turn MUDA \u201cfrom what is already visible\u201d into verifiable data.<\/span><\/p>

                        Loss Tracker from DENSO Asia is a smart IoT tool specifically developed to address this need. It acts as a “black box” for the production line, helping your factory track “losses” and “see” the actual problems in every step in real-time. Want to know more about Loss Tracker? Download the free e-book today!<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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                        <\/p>\n\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\"Slide\"\n\"\" \n\t\t\t\t\t\t\t<\/rs-layer>\"\" \n\t\t\t\t\t\t\t<\/a>Transform loss
                        \ninto Productivity \n\t\t\t\t\t\t\t<\/rs-layer>Get your free Guidebook from DENSO\u2019s
                        \nindustrial experts. \n\t\t\t\t\t\t\t<\/rs-layer>\t\t\t\t\t\t<\/rs-slide>\n\t\t\t\t\t<\/rs-slides>\n\t\t\t\t<\/rs-module>\n\t\t\t\t