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Cost Savings via waste elimination

The challenge on the Continuous Improvement journey is how to define “waste” via systems and processes.

Pw 1790 05 Col Cost Cutter Waste

We had a high response rate to the article in the last issue on Continuous Improvement (CI). As a result, we are going to delve deeper this issue with more detail on one element of CI — waste elimination. The topic is noteworthy as it was the theme of the recent F4SS CI Network inaugural meeting.

Some say, “Waste elimination — that isn’t new news.” No it is not, nor is virtually any other element of CI. The challenge on the CI journey is how to define “waste” via systems and processes. For any manufacturing process there is waste; it is only a question of degree.

 

The adjoining diagram illustrates waste elimination as an element of Continuous Improvement. With each cycle completed, waste is eliminated and, in turn, the process improves with reductions in time, materials, and/or labor (individually or in combination). This makes the process more efficient and responsive to demand, and at a lower cost. With the waste elimination cycle completed, a new process is created, and the cycle begins again.

New manufacturing processes are easier to wring waste out of, as you would expect. They have not been refined, and there is usually a measure of “low hanging fruit” to be harvested for significant, incremental improvements. For example, at the recent meeting, one F4SS member company cited a new product startup in which materials waste was running three times higher than projected.

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