Lesson 18 - Reducing Waste Flashcards
Define ‘waste minimisation’
Reducing the amount of resources that are misused or discarded by the business during operations.
Why is it important for businesses to minimise waste?
Waste costs businesses money (increases expenses) which impacts on profitability (Profit = Revenue - Expenses).
Waste reduces productivity and makes it harder to achieve business objectives.
Define ‘Lean Management’
Lean management is a business wide approach that aims to eliminate waste and inefficiencies in operations.
Why do businesses focus on lean management?
To maximise customer value through continuous improvement.
This involves eliminating any aspect of a business’ operations that do not add value to the end product.
How can lean management be achieved?
By making small incremental changes within the business BUT the business always puts the customer first. This reduces inefficiencies WITHOUT reducing quality.
Outline the waste management strategy of ‘Reduce, Reuse, Recycle’
Reduce = decrease amount of products, labour or time discarded during production – e.g. reduce number of employees producing goods if there is more labour than customer demand.
Reuse = make use of items that would have otherwise been discarded – e.g. CUB sell used yeast to Kraft for Vegemite.
Recycle = transform items that would have been otherwise discarded = e.g. Yakult recycles plastic bottles into other products such as chairs and tables.
Identify the 7 sources of waste.
(Lean management principle #1)
- Transportation
- Inventory
- Motion
- Wait times
- Over production
- Over-processing
- Defects
Identify which of the 7 sources of waste applies to each of the following:
- A lag time that leaves employees idle.
- Excessive movement of people, machines or materials.
- Performing processes that do not add value.
- Supplies that are not used or lay idle for long periods of time.
- Inefficient movement of materials or products
- Errors that either need to be fixed or discarded.
- Producing more than what consumers demand.
- Wait times
- Motion
- Over-processing
- Inventory
- Transportation
- Defects
- Over production
Identify the 4 Lean Management Principles
- 7 Sources of waste
- Pull
- One-piece flow
- Zero defects
What does Lean Management Principle #2 - ‘Pull’ mean?
How does it impact waste?
Production is based on actual demand rather than forecasting demand, producing and hoping buyers will purchase.
Impact on waste –
1. Minimises overproduction
2. Stops working capital (money) being tied up.
3. Prevents unwanted products from being produced and then discarded - reduces time + labour resources.
Which Lean Management Principle does the following describe?
A single product moving through all stages of production one at a time
Lean Management Principle #3.
‘One-piece flow’
How does ‘one-piece flow’ reduce waste?
It reduces the time that products spend at each stage of the production process.
This reduces wasted time and increases productivity and efficiency.
Which Lean Management Principle does the following describe?
Preventing defects from occurring in the production process.
Lean Management Principle #4
‘Zero Defects’
How is the principle of ‘zero defects’ achieved?
Business and employees approach production with ongoing attitude of preventing defects from occurring and improving the final product
If defect is found, production process is halted so that the defect is not passed on to next production stage.
Error is then identified and fixed to prevent further defects in the future.
How does ‘zero defects’ impact waste?
Preventing defects reduces products discarded or time and labour spent fixing defects.
