Strategies to improve both the efficiency and effectiveness of operations through waste minimisation in the production process Flashcards
including reduce, reuse, recycle
Waste:
Anything (time, labour, raw materials) that reduces the speed of production or stops production occurring at the lowest possible cost. It is the amount of products (both finished and unfinished) and materials that are misused or discarded by the business during its operations.
Waste Minimisation:
A process that involves reducing the amount of unwanted or
unusable resources created by the production process.
How does waste increase costs and decrease efficiency?:
> Poor equipment may mean many mistakes in a production process. This means a greater use of raw materials, which increases the unit cost of a product = waste
Product is produced with too much packaging = waste.
Poor training which means tasks take longer = waste.
Too many employees performing the similar tasks = waste.
Poor quality inputs, therefore need to use more = waste.
Waste minimisation in the production process –
efficiency and effectiveness (why would we want to reduce
waste?):
> Causes are identified and rectified. Public pressure and regulations have forced businesses to change the way they manage waste (eg with recycling).
Minimising waste helps address high raw materials prices and pressure to increase sustainability of operations.
Businesses are moving from waste treatment/ reduction to waste prevention.
Businesses who reduce waste, open themselves up to huge marketing potential by being more sustainable, which means they are also more competitive.
Waste minimisation - How does this help to meet objectives?
> improve profit and market share.
Costs are reduced and this could help to increase sales, which leads to greater market share.
By reducing waste, a business can help to meet market and social expectations of being more
sustainable, again helping to achieve more sales.
Waste Minimisation Strategies - 3 Rs
Reduce, Reuse, Recycle - This strategy focuses on recycling products by reusing resources. This means that the environment can recover.
Three other Waste Minimisation Strategies:
> Obtaining higher quality materials
Redesigning products and packaging
Improving quality control
