Enterprise Garbage Overproduction - Waste Management Results
One of the world's leading auto manufacturer, Toyota, was able to identify distinct areas of wasteful inefficiencies which could be attributed to the operations in the manufacturing industry of the present time.
These are identified as seven distinct areas, which most probably kills the potentials for profitability due to excess charges attributed to factors such as: waiting time, transport, overproduction, inventory, movement, poor quality control and process.
Make no mistake about it, because you cannot obviously see an area of waste it does not mean that it is not there.
Overproduction waste is a glaring example and it's true today that most companies pay only token lipservice to the concept of waste production.
In fact, many organizations believe that overproduction is a necessary part of doing business.
Overproduction waste is simply the production of goods in quantities that are greater than demand.
This position will be especially aggravated during an economic slowdown and will become very difficult to reverse.
Remember that for an item to be "overproduced" it will have incurred additional elements of waste all the way down the lifecycle process, including administrative and financial loss.
In corporate culture, there is a feeling that if a production line is not utilized 100% of the time, or if particular employees are allowed to be idle at all, that this is more wasteful than letting them operate 24/7.
This is a popular misconception and will at the least require a more educated assessment of equipment ROI.
Any company will have the risk of draining its resources if it continues to neglect the overproduction waste and the overall excesses in its operations.
Every single item produced by a company would have its corresponding price tag in terms of administration, support, finance, backup and other overhead costs, with the risk of having to let a product sit on a shelf and just wasting it to gather dust as the profit for the business goes away.
It is possible to minimize overproduction waste through integrating a waste management system that includes auditing of excesses and correlating production to the work order chain.
Quite simply, if a sale is not made or projected, the production equipment should be constrained from engaging.
Every company in the near future will be compelled to address environmental responsibility due to the economic pressures that would be a consequence of environmental neglect.
Other than carbon emissions reduction, sustainability could also involve other areas such as water use consolidation, waste reduction, and minimizing any form of excesses.
Comprehensive management tools for sustainability will help organizations better understand their position in terms of being able to identify areas of inefficiencies and excesses, like overproduction waste.
Such systems will almost always pay for themselves in short order.
These are identified as seven distinct areas, which most probably kills the potentials for profitability due to excess charges attributed to factors such as: waiting time, transport, overproduction, inventory, movement, poor quality control and process.
Make no mistake about it, because you cannot obviously see an area of waste it does not mean that it is not there.
Overproduction waste is a glaring example and it's true today that most companies pay only token lipservice to the concept of waste production.
In fact, many organizations believe that overproduction is a necessary part of doing business.
Overproduction waste is simply the production of goods in quantities that are greater than demand.
This position will be especially aggravated during an economic slowdown and will become very difficult to reverse.
Remember that for an item to be "overproduced" it will have incurred additional elements of waste all the way down the lifecycle process, including administrative and financial loss.
In corporate culture, there is a feeling that if a production line is not utilized 100% of the time, or if particular employees are allowed to be idle at all, that this is more wasteful than letting them operate 24/7.
This is a popular misconception and will at the least require a more educated assessment of equipment ROI.
Any company will have the risk of draining its resources if it continues to neglect the overproduction waste and the overall excesses in its operations.
Every single item produced by a company would have its corresponding price tag in terms of administration, support, finance, backup and other overhead costs, with the risk of having to let a product sit on a shelf and just wasting it to gather dust as the profit for the business goes away.
It is possible to minimize overproduction waste through integrating a waste management system that includes auditing of excesses and correlating production to the work order chain.
Quite simply, if a sale is not made or projected, the production equipment should be constrained from engaging.
Every company in the near future will be compelled to address environmental responsibility due to the economic pressures that would be a consequence of environmental neglect.
Other than carbon emissions reduction, sustainability could also involve other areas such as water use consolidation, waste reduction, and minimizing any form of excesses.
Comprehensive management tools for sustainability will help organizations better understand their position in terms of being able to identify areas of inefficiencies and excesses, like overproduction waste.
Such systems will almost always pay for themselves in short order.
