Regardless of their size and the products they produce, manufacturers generate waste due to their operations. While manufacturing waste is almost unavoidable, it can quickly add up and affect your bottom line if you leave it unchecked.
What is Manufacturing Waste?
Manufacturing wastes are byproducts and resources generated from production activities, and they do not add any value to the end-product or customers. The lean manufacturing methodology categorizes waste based on its source:
- Inventory waste
- Transportation waste
- Waste due to process inefficiencies
- Waste due to overproduction
- Waste due to defects
- Waste from overprocessing
- Waste due to resource under-utilization
Waste may not always be tangible, particularly if it stems from time and resource management inefficiencies. Regardless of the nature of waste, it is in every manufacturer’s best interest to identify and reduce waste.
How to Effectively Reduce Manufacturing Waste
Here are some ways to effectively reduce manufacturing waste:
#1 Reduce inventory waste
Inventory waste is perhaps the most tangible form of manufacturing waste. Excess raw materials in your inventory can significantly impact your profitability and efficiency. Correctly forecasting your inventory needs and adopting lean manufacturing techniques can help you control inventory waste and effectively reduce the amount of inventory you need to hold.
#2 Reduce production bottlenecks
Waste accrued from process inefficiencies is often the most difficult to identify and eliminate. Various reasons can contribute to production bottlenecks, including workers waiting for raw materials and ineffective utilization of resources. Planning your production while factoring in the availability of resources and materials can help eliminate production bottlenecks and control waste.
#3. Improve equipment dependability
Every piece of equipment undergoes wear and tear during its lifetime, leading to inefficiencies and affecting the equipment’s dependability. Unexpected equipment downtime can cause production lines to halt and affect your bottom line. Establishing a preventive maintenance schedule for your equipment effectively increases OEE and keeps unplanned downtime to a minimum.
#4. Recycle
Recycling is another practical approach to reducing manufacturing waste. Sorting waste is critical in effectively recycling waste and helps you find viable solutions to reduce or reuse them. Often, what you consider waste could be a valuable resource for another business. In such cases, a waste exchange program with other businesses can reduce your waste and yield immense environmental benefits.
#5. Adopt lean manufacturing
Lean manufacturing is a production process centered around maximizing productivity and minimizing waste. Many manufacturers have adopted the principles behind lean manufacturing to reduce production waste and achieve manufacturing excellence. Automobile manufacturer Toyota pioneered lean manufacturing concepts and systems back in the 1940s. Owing to the benefits that lean manufacturing offers, many other industries have followed Toyota’s footsteps to adopt it subsequently.
How AccelGrid can help reduce manufacturing waste
AccelGrid’s cloud-based inventory and MRP software can help you make the switch to lean manufacturing. With features such as advanced production scheduling and just-in-time inventory, AccelGrid has been helping manufacturers streamline their production and optimize their inventory. Start a 14 days Free Trial of AccelGrid now.
