| Remove waste. Remove cost. | | | | will this save time in each activity, but it will also have |
| All waste has associated costs in the form of: | | | | obvious health and safety benefits. |
| - Disposal costs; | | | | 5S for SMEs |
| - Storage costs; | | | | Sort: If you don't use it, remove it from the process |
| - Environmental costs; | | | | or physically from the area. If it is used occasionally, |
| - Cost of inefficient use (scrapped material); and | | | | store it. You'll be surprised at the space that is freed |
| - Opportunity cost (unrealized sale or redeployment | | | | through this simple task, and the flow increase that |
| value). | | | | such a simple task permits. |
| Is there a way to simultaneously reduce costs, | | | | Set in Order: Arrange the tools you use frequently in |
| increase efficiency and minimise environmental | | | | a logical order. Organise your production cells locations |
| impact? | | | | into a logical sequence to develop a directional flow. |
| An externality is a cost or benefit to a third party | | | | A simple, yet effective, example is to write the |
| not directly involved in the transaction. In this article I | | | | numbers between 1-10 in a random order and ask |
| will only refer to the benefits of identifying positive | | | | someone to find them sequentially. Then ask the |
| externalities - bi-products that offer benefit to third | | | | same person to find the numbers sequentially whe |
| parties. By internalizing externalities through the sale, | | | | they are written in order from 1 to 10. |
| re-use in the same production system or introduction | | | | Draw silhouettes behind the tools so you know when |
| into another system, waste can be reduced, | | | | one is missing and where each goes. Keep your tools |
| productivity increased and cost reduced. | | | | nearby their usage location to remove the time to |
| So, how can you reduce your waste? Can you | | | | walk back and forth. |
| establish a secondary market for the waste from | | | | Sweep: Regular or systematic cleaning of the |
| your production system? If so, could you realise both | | | | workspace will ensure a free workspace. In a clean |
| the environmental and economic benefits of waste | | | | environment, any abnormality can be detected more |
| reduction and inventory optimisation? | | | | easily and improved safety will be a bi-product. |
| Take for example Fiberglass composites, where | | | | Sweeping should be a frequent, systematic exercise, |
| offcuts and scraps can be shredded to become | | | | not one which occurs when the workspace gets |
| construction materials, or the high nitrogen contents | | | | messy or cluttered. |
| of milk waste that may be used as fertilizer, or the | | | | Standardize: Label everything visibly. By knowing |
| wood substitutes than can be made from recycled | | | | which items are in each aisle, cabinet, or vending |
| plastics. Even carbon emissions can be used to | | | | machine without investigation you will save time. New |
| stimulate algae growth now being used in the | | | | employees' learning curves will be sharper with clear |
| production of bio-fuels. | | | | visibility and training manuals. Clear and concise work |
| Lean manufacturing is a production practice that | | | | instructions can be displayed in the workspace to |
| considers the allocation of resources - time, labour, | | | | remove any deviation from the proven process. |
| capital - to any employment other than value adding | | | | Repeatability will increase your quality by reducing |
| for the end customer to be wasteful. Essentially, | | | | defects. |
| anything that does not add any value to the final | | | | Sustain: Do not allow the first four to be abandoned. |
| product is removed from the process. One way to | | | | Ensure frequent reminders, or processes to measure |
| remove any unnecessary resource allocation is the 5S | | | | compliance. A few small adjustments to your |
| methodology, which can be used by any | | | | processes may make the world of difference. |
| small-tomedium enterprise to increase flow. By | | | | enables the establishment of supply chain |
| increasing the rate of flow you can increase capacity | | | | partnerships in order to avoid waste to landfill. |
| without capital expenditure or major process | | | | Vendors reduce their waste to landfill by finding |
| redesign. For example, by designing a trolley at a | | | | buyers for their waste, while buyers reduce their |
| certain height, workers do not have to bend | | | | direct procurement costs by purchasing perceived |
| repetitively to access or distribute materials. Not only | | | | 'waste' as an input to their production system. |