Manufacturing a better way to reduce waste

Whether they’re building bicycles, making mobile phones or preparing produce, manufacturers are still trying to cut waste and other by-products from production processes. Gareth Moore, the BMS Sales Manager gets his hands dirty.

It is estimated that around $8T is wasted during manufacturing. This amounts to 10% of the Gross World Product (GWP) – the combined gross national product of all countries across the globe. Clearly this is not sustainable.

Not only is it wasteful, but it also increases manufacturing costs, reduces profits and negatively impacts the environment. The more that waste can be kept to a minimum, the better it is for everyone.

Lean-ing into a better way of manufacturing

Waste is an unavoidable part of manufacturing, and it is unrealistic to think it can be eliminated completely. But Lean Manufacturing, pioneered in the 1930s, identifies any part of the manufacturing process that doesn’t add value so waste can be reduced, and productivity increased.

Digital technology takes Lean Manufacturing to an entirely new level. The method now concentrates on the collection of tools, techniques and principles that have proven to be effective at driving out waste. As well as providing the information needed to make sure the entire manufacturing process is as eco-friendly and sustainable as possible.

Whether it’s from different raw materials, the production lines they’re made on or even the facilities they’re created in, more detailed data can be collected than ever before. And better decisions can be made.

How technology helps reduce the seven types of waste

Overproduction: By monitoring and keeping production, purchasing and warehousing processes aligned with demand, the supply chain can be managed to ensure production is at the right level. This not only reduces waste but saves valuable space and prevents working capital being tied up in the wrong materials.

Transport: Moving materials and goods around is costly in terms of transportation, and the environment. Excess movement is also damaging to your valuable products and can result in stock losses. Technology can help manage logistic flows, offering realtime dashboards to provide complete visibility and to help avoid excessive movement.

Motion: Moving parts in manufacturing can be expensive to fix or replace when they break down, not to mention the costly delays to production while they are out of action. Tools that provide in-depth management of asset data facilitate preventative maintenance, work order control, early diagnosis and statistical analysis. With a single system in place, everyone can access all this important data and quality control can be easily monitored.

Inventory: It’s a fine line between having too little inventory to meet customer demand, and having too much, resulting in issues of warehouse space, insurance costs and more. A lot of manufacturers follow some variation of Just In Time (JIT) processes to get the balance right. This process is made much easier with real-time monitoring of inventory, to help keep up with ever-changing customer demands without holding costly, excess inventory.

Defects: Faulty, damaged or hazardous materials and goods not only affect the safety of employees and customers, but they can also negatively impact the reputation of a business. Identifying faulty batches and compromised raw materials and having full traceability helps keep these issues to a minimum. Real-time data helps identify where issues lie at any stage of the process and ensures they can be addressed quickly.

Waiting: Products can sit idle at any stage of the manufacturing process due to factors including unplanned downtime, production bottlenecks or staff shortages to name a few. This waiting represents significant capital that isn’t adding value and is in fact costing money. Technology that provides oversight of the entire manufacturing process offers all stakeholders a single source of truth as to the status of all products, meaning there’s never a need to wait.

Overprocessing: Extra steps in workflows and double entry of data are two examples of this, delaying timelines but adding no value to customers. Optimising workflows in a single system across all manufacturing processes from Bill of Materials (BOM) to shop floor control ensures total control and increased planning accuracy. Reducing waste and making production processes more efficient is good for the bottom line, and the environment. sage.com/en-au/cp/minimise-waste-ebook/