Waste minimisation is the process of reducing the amount of unused material, time, or labour within a business.
Types of waste that may occur in a business's operations system
Time wasted when transporting resources or products
Inputs wasted or easily damaged, especially if they are lower-quality inputs
Labour wasted when employees have little or no work to complete during production
Time wasted from delays between production stages
Products wasted when a business produces too much and is unable to sell them
Labour of highly-experienced employees wasted when they are assigned tasks that can be completed by less-experienced employees
Products wasted when they are defective and cannot be sold
TIMWOOD
Acronym for the types of waste in operation system
Types of waste in operation system
Transport
Inventory
Motion
Waiting
Overproduction
Overprocessing
Defects
Transport
Unnecessary transportation of products or materials can waste time and money, as well as increase the risk of resources becoming damaged
Inventory
Excess inventory of products and materials can waste storage space and increase the chance of goods becoming damaged
Motion
Unnecessary movement of employees during the production process can waste time
Waiting
Waiting or delays in the production process for work to be completed can waste time, which decreases productivity
Overproduction
Producing outputs beyond customer demand
Overprocessing
Doing more work than necessary
Defects
Products that have errors or defects are often discarded or corrected, wasting time, money and materials
effect of waste minimisation on business and its operation
its minimise a business’s production costs, as less resources are wasted.
Reducing production costs within a business’s operations system can increase a business’s profit margins or enable a business to offer lower prices to customers.
effect of waste minimisation on efficiency
By minimising the amount of time wasted in operations a business produces goods and services at a quicker rate, increasing efficiency.
By reducing the number of materials discarded, a business optimises its use of resources and increases efficiency.
effect of waste minimisation on effectiveness
Reducing waste lowers operational costs which can allow for a business to offer lower prices to customers. This can increase the number of sales and meet the objective of increasing market share. The increase in sales will also increase revenue, which can assist in the achievement of making a profit.
define reduce
Reduce is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production.
effect of reducing wastage
business can reduce the amount of wasted resources throughout production to optimise the use of its resources and decrease operations costs
ways to reduce resources
Adjusting the amount of goods produced each month based on predicted customer demand
Organise the number of employees required for each day based on how much work needs to be completed.
Review and select the optimal transport routes for the distribution of products.
Implement proactive approaches that assist in reducing the number of defective products.
define reuse
Reuse is waste minimisation strategy that aims to make use of items which would have otherwise been discarded.
effect of using reuse on operation system
Reusing resources promotes the optimal use of resources as it increases the amount of outputs that can be produced without having to purchase additional inputs.
Reusing items can also lower a business’s production costs through increased productivity, as the business can produce more outputs without having to increase the amount of resources used.
waste minimisation can assist in reducing costs related to waste removal.
ways that resources can be reused
Reusing storage items such as plastics, cardboard boxes
Reusing functional parts of defective products
Collecting packaging from customers such as glass bottles
Reusing natural resources such as water
Define recycle
is waste minimisation strategy that aims to transform items which would have otherwise been discarded.
effect of recycle items
business can reduce the amount of money that is needed to purchase new resources, subsequently reducing the business’s production costs.
A business may also reduce expenses related to the disposal of waste through recycling.
how can business recycle items
can implement technologies into their operations system that allow for specific resources to be recycled, such as:
• glass
• paper-based materials
• metals
• batteries
• plastics
• natural waste.
Lean management
The process of systematically reducing waste in all areas of a business's operations system whilst simultaneously improving customer value
Effect of lean management on the business operation system (advantage)
Reduce the amount of waste generated from discarded materials and unused time within its operations system
Enable a business to use resources more efficiently, meaning materials are not purchased as frequently and tasks are completed at a faster rate, reducing overall production costs
Benefit customers as the business is able to charge cheaper prices
By offering a lower-priced product that is delivered more quickly, a business can improve its level of customer satisfaction
Lean management ensures the output meets the customer satisfaction
Advantage of lean management
Improves business reputation by reducing and managing waste, which benefits the environment
Improves quality as processes are streamlined to ensure all activities add value to the final product and customer expectations are met
Employees may experience greater job satisfaction as they are actively involved in reducing waste in operations and positively impacting the environment
Products can be produced at a faster rate when strategies such as takt and one-piece flow are introduced as they focus on continuous production
Reduces the amount of time that is wasted between tasks
Reduces the overall use of materials, which leads to fewer production costs
Improves the quality of a business's products, leading to greater customer satisfaction and sales
Disadvantages of lean management
If suppliers do not deliver materials on time, the business may be unable to streamline its production process to meet customer demand
Employees may be reluctant to commit to an attitude of zero defects due to the effort and commitment required
It may be overwhelming for employees to implement lean management as there is a goal for constant improvement
It may be time-consuming to train inexperienced employees and provide them with the knowledge to commit to lean production methods
It can be costly to implement lean management as implementing new policies, procedures, and training employees can come at a high expense
Pull
A lean management strategy that involves customers determining the number of products a business should produce for sale
Pull management strategy
A business will only produce its goods or services to meet customer demand to ensure that no resources are wasted on unwanted products that will later be discarded
The customer need to give the order beforehand in order for the business to produce its output in the right time
Pull management strategyeffect on efficiency
Reduces overproduction and minimises the number of wasted materials, time, and labour generated by a business's production process, increasing productivity
Pull management strateg- efficiency
Reduces a business's materials wastage, and allows a business to optimise its use of labour resources, leading to increased productivity
Pull management strategy effectiveness
Minimises the amount of discarded materials and resources in its production process, allowing it to reduce its expenses, enabling a business to better achieve its objective of making a profit
One-piece flow
A lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production
Characteristics of one-piece flow
One product moves through each stage of the entire production process without delay, while the new product takes it's place
Effect of One-piece flow management
Reduces the number of errors in a business's operations process by only producing one unit at a time, increasing productivity
Effect of one-piece flow management
Allows a business to produce higher quality products at a faster rate, improving customer satisfaction. This can enable a business to achieve the objectives of fulfilling a market need and increasing market share
Takt
A lean management strategy that involves synchronising the steps of a business's operations system to meet customer demand
Characteristics of takt
It allows for a continuous pace
The output of one production stage is transferred to the next step in a timely manner
If implemented correctly, the business ensures items complete the production process with no delays between steps
Takt management- efficiency
Optimises the flow of materials between the stages of the production process, reducing wasted time and increasing productivity