IMPROVE ROI WITH WASTE MANAGEMENT

PARAMETERS TO MEASURE ROI

•Cost Savings

•Customer’s Satisfaction

•Business Growth &

•Brand Differentiation

Waste is one such element that aids cost cutting, but mostly goes unnoticed by the managers.

•Recognize, control and manage waste

•Identify reasons that lead to waste

•Working upon and minimizing it would directly hit your bottom line

Here we introduce you to top seven ways waste occur in manufacturing

IMPROVE ROI WITH WASTE MANAGEMENT

1. OVER STOCKING

• Occupies the warehouse space

• Stocked material is subjected to decay or spoilage

• Blocks the space which can be used for other products

• Incurs additional rents, maintenance and handling cost

• Blocks the capital assets

2. INADEQUATE OR OBSOLETE MANUFACTURING PROCESSES• Production waste impossible to avoid but can be minimized

• Low productivity is resulted because of old practices & out dated technology

• Production capacity isn’t fully exploited

• Fails to meet customer’s demand due to lack in production

• Products based on old technology can’t compete the market, resulting in wastage

3. OVER PRODUCTION

• Causes inadequate use of personnel, product and material

• Leads to unnecessary accumulation of goods on the production floor

• Again blocks money and space

• Results into heaps of useless inventory items

4. DEFECTED OR LOW QUALITY GOODS

• Inefficient manufacturing practices lead to poor

quality goods, ultimately resulting in waste

• Additional cost is incurred for rework and recall of

such products

• Managing scrap becomes time, labor and money

consuming task

• To minimize wastage, ensure defect free production

5. TIME WASTAGE DUE TO LACK OF INFORMATION FLOW

• Production or delivery halts occur in the absence of

the right information

• Such activities hampers market reputation,

sometimes orders are cancelled and its utter waste

for the manufacturer

• Customer experience also suffers

6. WASTAGE OF RESOURCES

• Due to lack of synchronization among the elements of

production, resources not optimally utilized and wasted

• Lack of visibility results in resource getting wasted

• Personnel or machinery idle on the production floor leads to

shrinking of the margin

• This waste becomes overhead and directly impacts the

margin

7. LACK OF TRACEABILITY

• Difficult to identify items close to expiry, expired or damaged in the

warehouses

• In cases of recall, makes it difficult to identify the root cause

• Preventive and corrective actions are delayed

• Production of defected goods continues

• Results into heaps of useless/faulty inventory items and thus wastage

PUTTING IT ALL TOGETHER

• The trick lies in identifying, managing and controlling the waste

• It is possible with the help an of Enterprise Resource Planning software

• ERP offers impressive inventory management

• Efficient planning module eliminates chances of over/under stock

• Quality control and assurance features result in desired quality products

• Bi-directional Traceability prevents and limits damage

• In short, ERP helps to manage waste better, in turn enhances ROI

For more details visit us at www.batchmaster.co.in or contact us sales@batchmaster.com

THANK YOU