Type of waste in manufacturing industry

Wastage in the manufacturing industry

Inventory-

The most expensive waste of manufacturing systems is inventory because it requires proper care and well-defined strategies.

• Large amount of raw materials
• Too much-finished products
• Large number of work in progress material

How much inventory should you store for future prospective?

Motion-

• The too lengthy manufacturing process can waste time and reduce the manufacturing rate.
• The unnecessary movement of man and machine is motion waste.
• So try to eliminate those process which is not productive for the industry. Because costumers are not going to pay you for your non-value addition process.

Overproduction

• The production is more than demand
• Due to overproduction, it will increase the carrying cost.
• Market demand is constant but production is increased so the price of the product decreases. 

Transportation-

• Transportation cost is waste because it doesn't add value to products so it should be minimum.
• It includes all the cost of movement of material from one location to another location.
• If the industry is situated far away from the consumption area then it will increase the transportation cost.
• As transportation cost increases it will add up in product price so product price also increased.
• If a company asked a customer to pay ₹100 (say) more because they spend mere then no one willing to pay for it.
• Replacement also increases transportation costs.

Over-processing

Higher quality than it required also increased the cost.

More work on the process also increases the cost.

Rejection

• Due to large waste generation productivity of process decrease.
• For example: when the target is fixed to produce 1000 items in a day then we do not make a plan for 1000 items so when we generate 50 defective products than now 50 more products we have to prepare which was not in the plan.

Replacement

• The replacement price is not going to pay by costumers. 
• All replacement price that is transportation, as well as maintenance costs, are paid by industry. So replacement is also a waste of money and time.

Waiting time

Waiting time for the next process also increases the cost. More than 80% wastage generated due to waiting time because many processes are linked with each other.