Building Processes that Reduce Waste & Create Capacity

Building processes that work, is quite a straightforward task, we can take out our pens, and sit and record how it works, but building processes that reduce waste is a whole different ball game.

What Exactly is Waste?
The simplest way to describe waste is as “Something that adds no Value.”  Would you be happy if you received a bill in a restaurant that included a meal that was prepared in error? No; you would argue and demand that it was removed from your bill; yet if you buy a product in a store the price that you pay will contain costs that you would not want to pay. Would you want to pay for the machine operators wages whilst they sat idle waiting for a delivery, or for the rework processes that had to be undertaken because the machine was incorrectly set, or even for storing your product for three months before it was delivered to the store? These wastes are included within the cost of your products, either inflating the price you pay or reducing the profit of the company.

Why Remove Waste?
Profit is your selling price less your costs, no matter how you think about the selling price it is very much dictated by the market not by yourself. If you charge too much then your customers will go elsewhere, even if you charge too little you may lose customers as they will perceive there may be something wrong with what you are offering. Therefore the only way you have to improve your profits are to reduce your costs; this means removing all elements of waste from your processes.

In addition to improving profits you will find that waste has a major impact on your customer’s satisfaction with your products and services. Customers want on time delivery, perfect quality and at the right price.

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