Types of Waste PDF

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Types of Waste...

Description

Operations Management Types of Waste

Overproduction Producing more than what is needed to meet customer demands or unnecessarily producing goods early before they are needed. This causes several problems including risk of goods becoming lost or being stolen, having too much stock on the premises and higher storage costs. ! Motion Unnecessary movements by staff that take them away from work. Usually caused by poor office/workplace layout. ! For example: ! • Staff having to walk around the factory collecting tools or equipment! • Unnecessary physical moves ! • Bending/stretching/reaching when not necessary ! Defects This could include physical defects with products and other errors such as inaccurate paperwork or late delivery. ! When a physical defect occurs the product will either have to be repaired or disposed of. This will result in higher costs, more raw materials being used, more time being spent either remaking or repairing the product and other issues such as delayed meetings, increased paperwork and more staff time being allocated. ! Transportation Transporting goods from one place to another does not actually create value so the cost of this should be minimised. Businesses should reduce transport of goods as much as possible by: !

- Minimising cost of transportation ! - Moving locations closer to each other ! - Reducing amount of travel !

Costs of transportation include: !

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Staffing costs ! Time ! Implementing safety precautions ! Packaging ! Waiting for goods to arrive is a cost itself !

Inventory Holding too much inventory which can be caused by overproduction, ordering too much or poor planning. Costs the organisation money, time and storage space to hold excess inventory. ! Can be resolved by better communication between departments, better forward planning and reducing the need for emergency stock/raw materials. ! Waiting Waiting can be a source of waste for an organisation due to slowed or stopped production. ! Waiting can be caused by: !

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Waiting for the previous step to be completed ! Waiting for goods or raw materials to arrive ! Late delivery ! Defects !

This can be resolved by ensuring staff are trained, proper forward planning and improved efficiency across the organisation. ! Overprocessing Any aspect of the production process that is unnecessary. Adding more value than what is necessary. These increase cost for the business and result in wasted time and resources. For example, manufacturing excess products....