Waste Management

The industrial waste and scrap consists of spoiled raw-materials, rejected components,
defective parts, waste from production departments etc. involves some commercial values.
They should be disposed of periodically and proper credit of the amount should be taken in the
books of accounts. Hence, waste management places an important role in managing
operations. Wastes can be categorised into obsolete, surplus and scrap items.

1. Obsolete items: These are those materials and equipments which are not damaged
and which have economic worth but which are no longer useful for the Company’s
operation owing to many reason such as, changes in product line, process, materials,
and so on.
2. Surplus items: These are those materials and equipments which have no immediate
use but have accumulated due to faulty planning, forecasting and purchasing.
However, they have a usage value in future.
3. Scrap: It is defined as process wastage, such as, turnings, borings, sprues and flashes.
They may have an end-use within the plant having commercial values. Hence, should
be disposed of periodically.

REASONS FOR GENERATION AND ACCUMULATION OF OBSOLETE, SURPLUS

AND SCRAP ITEMS
Following are the reasons for the generation and accumulation of obsolete, surplus and scrap
items:

1. Changes in product design: This may lead to some items getting invalid so far as the
final product is concerned. Hence, the entire stock of such items as surplus obsolete.
2. Rationalization: Sometimes raw materials are renationalized so as to minimise
variety and simplify procurement. The rationalization process renders some items as
surplus or obsolete.
3. Cannibalization: When a machine breakdown occurs, sometimes it is rectified using
parts of an identical machine which is not functioning due to various reasons. This
process of ‘cannibalization’ is not uncommon in many project-based industries.
When continued unchecked, this results in obsolete and scrap items.
4. Faulty planning and forecasting: The marketing department may have projected a
sales forecast which might be on the higher side. Any material planning has to be
based on sales forecasts and this could result in surplus items. Wrong indenting by
the user departments also leads to accumulation.
5. Faulty purchase practices: Sub-optimizing decisions like buying in bulk to take care of
discounts and transportation economy without taking into account factors such as,
 shelf life, storage space requirements and technological changes once again lead to
the accumulation of surplus and obsolete stocks.
6. Other causes: Many items are held as insurable spares for many years without any
consumption. Faulty store-keeping methods, without adequate preservation, lead to
spoilage. Inferior materials handling, improper codification and poor manufacturing
methods also result in obsolete, surplus and scrap items. Poor maintenance of
machine tools may result in excessive tools wear and greater process scrap.

IDENTIFICATION AND CONTROL OF WASTE

The combing process of combining the stock records and movement analysis has been found
very effective in locating such stocks in the total inventory. Stock issue cards should be combed
and items which have not been consumed (non-moving) for a period of one year must be
isolated. A list of such items and their value in terms of money and time must be made.
Similarly, such lists must be prepared for items which have not moved for 2 years, 3 years, 5
years and above. Such lists can then be put up to top management for disposal action. Care
must be taken to prepare a separate list of imported spares and insurance items. Such combing
and movement analysis must be done on a continuous basis.

Whenever changes in production programme, design and product lines are contemplated, a
senior executive from materials management must definitely be kept in the picture. This helps
in several ways. He is in a position to inform top management of the amount of stock of
materials on hand that are likely to be rendered obsolete if and when the changes are
introduced. This could even guide the management as to when the changes could be made so
that the existing
stock can be consumed in full. The materials manager in turn can freeze further orders for such
materials and try to negotiate with the suppliers to take back the stock. For some items he can
introduce the buy-back clause wherein the suppliers takes back items not consumed within a
specific period. For new items which may be required, he can try to develop sources and place
orders so that changes can be expeditiously introduced. All this highlights that a close
coordination is required in order to avoid stock pilling obsolete and surplus items. Selective
control based on ABC analysis, accurate forecasting techniques and proper preservation
minimise such accumulation. In the case of storage of perishable items the Central
Warehousing Corporation has devised a scheme to enlarge its scope to cover certain specialized
lines of storage. The schemes drawn up by the corporation include setting up a chain of cold
storage plants for potatoes, and fruit, and storage facilities for certified seeds.

Many organizations have introduced formal documentation in introducing changes in design or

product. It is called the ‘Effective Point Advice.’ This is popularly known as EPA. Here, the
proposed changes, details of new materials and products required, details of materials and the
products which will be invalid/obsolete when the change occurs and the approximate date
when the change is expected to be introduced are detailed and circulated to concerned
departments. EPA thereby helps in tapering off the stocks of ‘invalid’ items, cancellation of
orders for such items, placing orders for buying and/or manufacturing new items and related
activities. EPA systems help in better coordination for profitable introduction of changes with
minimum ‘ side effects’ such as the accumulation of obsolete items.

WASTE-TO-VALUE TECHNOLOGY

Waste-to-value technol ogi es tur n w aste into energy, industrial products, or

consumer g oods. Anaer obic dig esti on (AD), landfill g as to energ y, and waste
recycli ng ar e common types of waste -to-val ue technol ogy. Feedstocks for waste-
to-val ue pr ojects i ncl ude organic and solid waste such as food w aste,
wastewater , dair y manur e, and plast i cs.

Usi ng appr opriate feedstocks is cr ucial for mai ntaini ng safe and operati onal
waste-to-val ue pl ants. Si nce waste str eams natur ally vary i n composi ti on,
devel opi ng a feedstock strategy i s the fir st step i n devel opi ng a waste -to-val ue
pr oject. Use our feedstock matri x templ ate to eval uate feedstock opti ons.

WASTE-TO-VALUE STATISTICS

A low-car bon economy depends on waste-to-val ue technol og y. Utili zi ng the ever -

growi ng supply of waste is r ecog nized as a component of a waste manag ement
strategy to mi tigate cli mate chang e, and shri nking l andfill capacity i ndicates the
need for sol uti ons.

The demand for and i mpor tance of waste-deri ved sol uti ons i s reflected i n these
figur es:

 It’s estimated that i n the United States, fuels derived from waste could
replace 4 to 7 percent of the national fossil fuel consumption.
 According to the EPA, in 2018, 69 million tons of municipal solid waste
(MSW) were recycled in the United Stat es. However, nearly half of all trash
goes to landfills.
 Over 90% of renewable natural gas (RNG) currently comes from landfills.
 The carbon intensity of RNG derived from animal manure is up to eight times
lower than conventional natural gas, according to World Resources Institute
findings.
 The molded fiber market is expected to grow at a rate of nearly 5% over a
seven-year period. The biodegradable material is a sustainable alternative to
plastic packaging and styrofoam.
Types of Waste
Commonly waste is classified into two types: Biodegradable and Non-biodegradable waste. These two
kinds of wastes are explained below:

Biodegradable waste
These are the wastes that come from our kitchen and it includes food remains, garden waste, etc.
Biodegradable waste is also known as moist waste. This can be composted to obtain manure.
Biodegradable wastes decompose themselves over a period of time depending on the material.

Non-biodegradable waste
These are the wastes which include old newspapers, broken glass pieces, plastics, etc. Non-
biodegradable waste is known as dry waste. Dry wastes can be recycled and can be reused. Non-
biodegradable wastes do not decompose by themselves and hence are major pollutants.

Recycling of Waste
Recycling of waste product is very important as this process helps in processing waste or used products
into useful or new products. Recycling helps in controlling air, water, and land pollution. It also uses less
energy. There are a number of items that can be recycled like paper, plastic, glass, etc. Recycling helps in
conserving natural resources and also helps in conserving energy. Recycling helps in protecting the
environment as it helps in reducing air, water, and soil pollution.

Decomposition of Biodegradable Waste

Biodegradable waste can be decomposed and converted into organic matter with the help of different
processes.

Composting
This is the method in which waste can be decomposed and converted into organic matter by burying
them in the compost pits. The wastes are composed by the action of bacteria and fungi.

Vermicomposting
This method involves decomposition of organic matter into fertile manure with the help of red worms.
This manure is known as vermicompost.
Chemical waste
Chemical wastes are wastes that are made from harmful chemicals which are mostly produced in large
factories. Chemical wastes may or may not be hazardous. A chemical waste which is hazardous can be
solid, liquid or gaseous and will show hazardous characteristics like toxicity, corrosivity, ignitability, and
reactivity.

5S is a system to reduce waste and optimize productivity through maintaining an orderly workplace
and using visual cues to achieve more consistent operational results. Implementation of this
method "cleans up" and organizes the workplace basically in its existing configuration, and it is
typically the first lean method which organizations implement.

The 5S pillars, Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), and Sustain
(Shitsuke), provide a methodology for organizing, cleaning, developing, and sustaining a productive
work environment. In the daily work of a company, routines that maintain organization and
orderliness are essential to a smooth and efficient flow of activities. This lean method encourages
workers to improve their working conditions and helps them to learn to reduce waste, unplanned
downtime, and in-process inventory.

A typical 5S implementation would result in significant reductions in the square footage of space
needed for existing operations. It also would result in the organization of tools and materials into
labeled and color coded storage locations, as well as "kits" that contain just what is needed to
perform a task. 5S provides the foundation on which other lean methods, such as TPM, cellular
manufacturing, just-in-time production, and six sigma can be introduced.

5S techniques of eliminating wastes

5S is a cyclical methodology: sort, set in order, shine, standardize, sustain the cycle. This results in
continuous improvement.

The 5S Pillars1

Sort. Sort, the first S, focuses on eliminating unnecessary items from the workplace that are not
needed for current production operations. An effective visual method to identify these unneeded
items is called "red tagging", which involves evaluating the necessity of each item in a work area
and dealing with it appropriately. A red tag is placed on all items that are not important for
operations or that are not in the proper location or quantity. Once the red tag items are identified,
these items are then moved to a central holding area for subsequent disposal, recycling, or
reassignment. Organizations often find that sorting enables them to reclaim valuable floor space
and eliminate such things as broken tools, scrap, and excess raw material.
 Shine. Once the clutter that has been clogging
the work areas is eliminated and remaining items are organized, the next step is to thoroughly clean
the work area. Daily follow-up cleaning is necessary to sustain this improvement. Working in a clean
environment enables workers to notice malfunctions in equipment such as leaks, vibrations,
breakages, and misalignments. These changes, if left unattended, could lead to equipment failure
and loss of production. Organizations often establish Shine targets, assignments, methods, and
tools before beginning the shine pillar.

Set In Order. Set In Order focuses on creating efficient and effective storage methods to arrange
items so that they are easy to use and to label them so that they are easy to find and put away. Set
in Order can only be implemented once the first pillar,

Sort, has cleared the work area of unneeded items. Strategies for effective Set In Order include
painting floors, affixing labels and placards to designate proper storage locations and methods,
outlining work areas and locations, and installing modular shelving and cabinets.

Standardize. Once the first three 5S's have been implemented, the next pillar is to standardize the
best practices in the work area. Standardize, the method to maintain the first three pillars, creates a
consistent approach with which tasks and procedures are done.

The three steps in this process are assigning 5S (Sort, Set in Order, Shine) job responsibilities,
integrating 5S duties into regular work duties, and checking on the maintenance of 5S. Some of the
tools used in standardizing the 5S procedures are: job cycle charts, visual cues (e.g., signs, placards,
display scoreboards), scheduling of "five-minute" 5S periods, and check lists. The second part of
Standardize is prevention - preventing accumulation of unneeded items, preventing procedures
from breaking down, and preventing equipment and materials from getting dirty.
Sustain. Sustain, making a habit of properly maintaining correct procedures, is often the most
difficult S to implement and achieve. Changing entrenched behaviors can be difficult, and the
tendency is often to return to the status quo and the comfort zone of the "old way" of doing things.
Sustain focuses on defining a new status quo and standard of work place organization. Without the
Sustain pillar the achievements of the other pillars will not last long. Tools for sustaining 5S include
signs and posters, newsletters, pocket manuals, team and management check-ins, performance
reviews, and department tours. Organizations typically seek to reinforce 5S messages in multiple
formats until it becomes "the way things are done."

In business, customers vote how much they value products and services with their
money. Building the right things is a prerequisite for business success. That’s not part of lean
production deals with, but rather the lean startup concept.

Next to that, when you know what to offer to the market (doing the right things), you want to
be as efficient as possible in doing that (doing things right).

Efficiency is about achieving peak performance, where we use the least amount of inputs to
achieve the highest output. To minimize inputs, all waste must be eliminated.

In terms of production efficiency, there are seven types of waste:

1. Transportation
2. Inventory
3. Motion

4. Waiting
5. Overprocessing
6. Overproduction
7. Defects
You can use the acronym ‘TIMWOOD’ to remember the 7 Wastes of Lean easier.

Using a good time & attendance system and project time tracker and similar technologies
supporting business processes can greatly help to reduce different types of waste listed above,
especially those that are connected to time waste.
And now let’s look systematically at each one, as well as some ideas on how to
eliminate waste and achieve the maximum possible efficiency in the process of
production.

1. Transportation – Don’t unnecessarily move products or materials

Unnecessary transportation is an obvious waste which is easy to notice.
Transportation is defined for this purpose as the movement of products or materials
from one location to other, the obvious thing being that transportation adds no
value to the product.

In lean production, what we consider a transportation waste is when we are moving

products that don't need to undergo any processing. In addition to producing waste,
every time a product is transported, it is at risk of being damaged, lost or delayed.

The longer the product moves around, the longer it goes without any value being
added to it. Handling of the products is also part of transportation waste.

Transportation waste is most often caused by:

 Having several production or storage locations

 Poorly laid out production lines
 Overly-complex production processes
 Large batch sizes
The solution: you have to minimize all transportation in the production process and
avoid any unnecessary steps between any two processes. There must be a good flow
between the processes, and strict limitation of work in progress.
2. Inventory – All the access products and material that are not being
processed
Inventory or inventories are all the components, works in process, and finished
products not being processed. Every piece of raw material, all finished goods,
and every other item not being sold is actually a cost for a company.

Additionally, inventory is a cost because it has to be stored, and transported, and

sometimes needs packaging. It can also be damaged.

Inventory waste might also be cash not used to generate income, space not
completely utilized, paperwork which is unnecessarily stored, etc. The most frequent
cause of excessive inventory is:

 Overproduction of goods
 Overspending on inputs
 Inventory defects
The solution: Don’t store any extra inventory. Make purchases only when needed
and in quantities that are actually required.

3. Motion - All movement of equipment not done in the easiest

possible way
The waste of motion includes all movements that are not done as simply as possible.
It’s similar to the transportation of products, but movement refers to the motion of
equipment and operators.

We are talking here about people or equipment moving or walking more than is
required to perform processing.

All excessive motion represents big stress. In business, there is a saying that even
machines wear out. You want to save as much energy and resources as possible,
even at the micro level.
Examples of motion waste in business are:

 Non-ergonomic office layouts

 Walking to deliver paperwork
 Searching for things
 Lifting heavy things etc.
Motion waste usually disrupts the workflow and delays the start of work.

The solution: A good way to reduce motion is to follow the 5S system of organizing a
workplace.

Try to simplify and optimize all motion in the production line, placing equipment
nearby, providing an ergonomic workspace, and implementing visual signals so
things are easy to find.

4. Waiting – idle production time where processes are not optimally

synchronized
Waiting, also known as queuing, is another type of waste. It simply means waiting for
the next production step or dealing with interruptions of production during a shift
change.

When two interdependent processes are not synchronized, idle time is produced,
and we have waiting waste. An example of this is waiting for an answer from another
department so you can take action, system downtime, or waiting for shared
equipment.

Waiting is most often caused by:

 Poor process planning or layouts

 Idle equipment or unplanned downtimes
 Bottle necks
The solution: Optimize and connect all processes in such a way that the waiting time
is minimized, and no time is wasted. The work should be standardized and proper
production takt time introduced.

5. Overprocessing – Investing more into a product than customer

values
Overprocessing means putting more into a product than is valued by the customer.
The goal is to do only the level of processing that matches usefulness and necessity.

Similar to motion, this type of waste is very hard to notice and eliminate in business.

An example of overprocessing in production is painting unseen areas. Machines that

are overprocessing because the whole process flow is directed through them are also
an example of this kind of waste.

In lean, small is beautiful. Overprocessing can also be a result of unnecessary

production steps, using older, outdated methods, or not having standard work plans.
It can also be caused by slow approval process.

Overprocessing is most often caused by:

 Unnecessary production steps

 Using outdated methods
 A Lack of standardization
 Slow approval process
The solution is to match the level of processing to what the customer wants and is
willing to pay for. Don’t do more, and avoid perfectionism in this regard, rather
always have the customer in mind before you start to work on any task.
6. Overproduction – the waste of making too much too soon
The sixth type of waste is overproduction, which means producing more, faster than
needed, or “making too much too soon”.

It’s the worst of the 7 since it also leads to other kinds of waste and devalues the
need for constant improvement.

Overproduction leads to excess inventory, simply because it is production ahead of

demand. Overproduction is usually based on the “just in case” mindset.

Many people think that inventory is an asset and has value, but in reality the value is
very low or doesn’t even exist.

The most frequent causes of overproduction are:

 Poor forecasts of market demand

 Unpredictable production schedules
 Lack of automation or poor automation
 Long setup times for production
The solution: Switch from the “just in case” mindset to “just in time” production, by
considering the overall takt time of a production line.

7. Defects – mistakes and errors that take time to fix

And finally we come to the last and most obvious type of waste – defects.

Every defected item requires repair or replacement, creates additional paperwork,

and wastes resources, materials, and time. It can often also lead to loss of
customers.

Most often defects are caused by:

 A Lack of standardization
 Inadequate quality control
 Insufficient machinery repair
 Poor communication
 Human errors
It’s better to prevent defects than try to detect them. Examples of defect waste in
business are missing information, errors, and client complaints.

The effort accompanying this type of waste consists of inspecting for defects,
avoiding mistakes, and fixing defects as fast as possible. Standardizing all work and
performing regular detection of abnormalities is the way to go.