Manufacturing and manufacturing waste go hand in hand. Byproducts are an inevitable part of production.
But types of waste vary from plant to plant. One facility might have a factory floor covered with unsold products because of overproduction, while another might make on-the-clock workers stand around waiting for materials to arrive.
While some level of waste may be unavoidable, you can still tackle the issue head-on. Let’s explore the different types of waste and strategies for reducing them.
Understanding manufacturing waste
Manufacturing waste is easier to understand in the context of lean manufacturing. Originating from the Toyota production system, lean manufacturing focuses on delivering value to the customer while using the fewest resources possible. Its primary goal is to reduce inefficiencies and continuously improve operations. And that means all manufacturing companies can benefit from it.
Lean manufacturing starts with identifying which materials or resources in the production process don’t add to the end product. Those low-value steps are known as manufacturing waste. While literal waste, like excess inventory, falls into this category, so do downtime and unused resources.
The 8 wastes
In lean manufacturing, there are eight categories, often referred to as the eight wastes. Here’s a breakdown — and if you need a mnemonic device to remember the types, pay attention to the first letter of each category, which together spell “downtime.”
1. Defects
Defects refer to products that you have to rework or discard because they’re not up to the required quality standards. This type of waste uses up materials and consumes time and labor. It stems from various sources, including poor-quality raw materials, inadequate training, or faulty equipment.
2. Overproduction
Overproduction happens when you produce more products than needed, leading to excess inventory that might not sell, tying up capital and resources. Poor demand forecasting or inefficient production planning often drive overproduction.
3. Waiting
Waiting time refers to when workers or machines are idle due to bottlenecks in the manufacturing process, like material supply delays or equipment downtime. This type of waste is particularly harmful because it disrupts production flow and causes longer lead times.
4. Non-utilized talent
Failing to effectively utilize workers’ skills and talents is another form of waste. This isn’t just a question of whether they’re busy or standing around. Recognizing and harnessing employees’ full potential can lead to innovative solutions and continuous improvement.
5. Transportation
Transportation waste occurs when you move materials or products within the factory more than necessary, consuming extra time and increasing the risk of damage. Reduce it by optimizing the factory layout and improving material handling processes. Cross-docking, which skips warehousing and sends products straight from manufacturing to customers, is another effective way to avoid this waste.
6. Inventory
Holding on to more inventory than necessary for production and sales ties up capital and space, leading to additional storage costs and potential obsolescence. Excess stock often results from overproduction, poor inventory management, or inaccurate demand forecasting.
7. Motion
Unnecessary motion refers to any movement by workers or machines that doesn’t add value to the product, like walking 10 steps to retrieve a commonly used tool or part instead of storing it within easy reach. The most common culprits of excessive motion are a poor workplace layout and disorganized workstations.
8. Extra processing
Overprocessing happens when more work or higher-quality materials go into a product than necessary. This often results from poor production planning or a lack of understanding of customer needs. A classic example of overprocessing is fitting a product with features that customers won’t value enough to justify the extra work and cost.
10 effective ways to reduce manufacturing waste
After identifying the types of waste impacting your manufacturing operations, it’s time to adopt actionable strategies to minimize them. Here are 10 ways to reduce manufacturing waste and streamline production.
1. Implement efficient inventory management
Obsolete, damaged, or overstocked materials are some of the biggest contributors to manufacturing waste. Reduce them by adopting techniques like just-in-time (JIT) inventory, which aims to order materials only when needed.
Inventory management software like Fishbowl can also help you cut back on waste by providing valuable metrics and real-time visibility into stock levels and sales trends, preventing over-ordering.
2. Reduce packaging materials
Packaging waste isn’t just a burden on the environment — the more materials that package up the goods you send and receive, the more you spend on storage, shipping, and disposal.
To cut back on excess materials, redesign product packaging to use as little dunnage as possible, and replace single-use items with reusable or recyclable materials like air packs or corn-based packing peanuts. Consider shipping products in bulk to reduce the overall packaging required per item, and talk to suppliers about sending deliveries with fewer materials.
3. Practice volume reduction
When it comes to managing the waste you do create, reducing its volume makes a big difference in disposal and environmental impact. There are two common volume reduction techniques: waste concentration and source segregation.
Waste concentration reduces volume through processes like compaction or dehydration. Depending on the material, this also increases its reusability.
Source segregation separates waste streams at their point of origin, facilitating the targeted treatment and recovery of valuable resources like metals while enabling proper disposal of hazardous or non-recyclable components.
4. Recover, reuse, and sort
When possible, use green manufacturing techniques. Choose recyclable, biodegradable materials for construction and packaging to reduce waste and make a smaller environmental impact. Implement a sorting system with dedicated oversight to ensure proper disposal and explore waste exchange programs for potential resource sharing with other businesses. And both on and off the floor, recycle paper, plastic, metal, and other nonhazardous materials.
5. Establish a preventative maintenance schedule
Equipment is bound to show signs of wear and tear over time. Without regular maintenance, machines are more prone to breaking down or producing defective products, both of which generate waste.
Be proactive to prevent breakdowns instead of reacting to them. Tools like Fishbowl Manufacturing paired with the Fishbowl Time plugin help you schedule and track preventative maintenance with ease.
6. Label and organize the warehouse properly
Organization and efficiency go hand in hand, which means a well-organized, clearly labeled warehouse can dramatically cut down on waste. That might require completely reconfiguring the layout, or it could be as simple as refreshing faded markings and regularly repainting the lines on the warehouse floor.
With an optimized space, workers have less trouble locating, accessing, and tracking materials and products, minimizing the risk of loss and damage. Plus, the organization’s overall productivity and accuracy improve, using talent wisely and preventing costly errors like incorrect shipments or delays.
7. Adopt a closed-loop manufacturing system
Green chemistry principles are a great way to reduce waste generation in manufacturing processes. This approach involves designing chemical products and processes that minimize or eliminate the use or generation of hazardous substances.
But if green chemistry isn’t a viable option, adopting a closed-loop manufacturing system is the next best thing. This approach tracks inventory and incorporates recycled materials back into production, minimizing contamination, extending materials’ and chemicals’ lifespans, and reducing the need to purchase new components.
End users also benefit from closed-loop manufacturing. When you design products for easy disassembly and recycling, you make it easier for them to recycle and recover valuable materials at the end of the product’s life, reducing the need for raw material extraction and landfill disposal.
8. Minimize water usage
Water is a critical resource in many manufacturing processes, but it’s often overlooked as a source of waste. Adopting proactive water conservation measures reduces your environmental impact while offering noticeable cost savings.
Audit your manufacturing processes to identify water conservation opportunities. You might be able to upgrade to more water-efficient equipment or implement closed-loop systems for water reuse. Look for small leaks, which can lead to substantial water waste over time. And if possible, reduce reliance on municipal water supplies by installing a rainwater harvesting system to collect and store non-potable water to use for landscaping, cleaning, or even certain manufacturing processes.
9. Anticipate holiday fluctuations
Overproduction produces manufacturing waste, but so can stockouts. Rushing orders from suppliers or sending out a greater number of small shipments to meet demand creates a financial and environmental burden, and running out of raw materials could lead to idle time for both workers and machinery.
To prevent under or overproduction, use demand forecasting. Planning production schedules mitigates the impact of seasonal demand fluctuations and the need for costly overtime. This proactive approach optimizes resource utilization, minimizes waste, and controls yearly production costs.
10. Provide waste reduction training to all employees
You’re only as strong as the weakest team member. Educating your people is the key to a successful waste reduction campaign. Provide comprehensive training on the importance of reduction, proper disposal, and recycling practices, and involve them in identifying and implementing solutions. Embracing a culture of continuous improvement inspires and empowers employees to actively contribute to enhancing operational efficiency and reducing waste.
Boost efficiency and reduce waste with Fishbowl
Tackling manufacturing waste is an ongoing process that requires a commitment to continuous improvement and the right tools.
That’s where Fishbowl comes in. Fishbowl’s all-in-one manufacturing inventory software helps you track inventory levels in real time, optimize production schedules, and identify areas for waste reduction with comprehensive reporting and analytics. Gain better control over your manufacturing processes, automate workflows, and make data-driven decisions that drive efficiency and boost profitability.
Ready to transform your manufacturing operations? Schedule a demo today.