Salvage Recovery, Re-engineering and Re

Cycling
(Graduate Diploma in Purchasing & Supply Chain Management)

Damith Liyanage
BSc in (Logistics) Management, CMILT, MISMM,

International Diploma in Supply Chain Management, (ITC-Geneva)

 Scrap & Waste

• Waste – Materials that are discarded or no longer needed.

“United Nations Environment Program: According to the Basel Convention,

waste is defined as substances or objects that are disposed of or intended to
be disposed of according to national law “.

• Scrap refers to discarded or rejected materials suitable for reprocessing.

• Scrap is a type of tangible waste, but not all waste is considered scrap.

• What measures can we take to effectively avoid waste and scrap?

 Scrap Disposal
1. Value of the scrap.
2. Volume of the scrap.
3. Costs of collection.
4. Costs of sorting.
5. Costs of housing.
6. Costs of security.
7. Preservation activities.
8. Segregation from dangerous materials.
9. Logistical activities related to scrap disposing.
10. Overhead and administrative cost involved in the process.
 Waste Disposal Policy Formation

1. Nature of material
2. Varity of materials
3. Disposability and recyclability
4. Value
5. Volume
6. Size and weight range
7. Continuity of supply and demand
8. Can we use standard methods or required any costly equipment needed?
9. Is storage equipment needed or present equipment satisfactory?
 Production Wastes

• Identify different types of wastes in your company.

• Rejected good from production Lines.

• Customer returns.

• Repairs.

• Maintenance.
 Materials Management Practices to reduce Wastes and scraps

Inventory Management

• Implement just in time practices to reduce surplus stocks.

• Regular monitoring of stocks
• Optimize stock levels and reduce the risk of obsolete and expired materials.

Waste Segregation and Recycling

• Establish waste segregation system

• Implement recycling programs
• Partnering with recycling facility provider.

Storage of waste scraps.

 Materials Management Practices to reduce Wastes and scraps Cont.

Lean Manufacturing
• Implement lean manufacturing principles to identify and reduce wastes.
• Implement lean practices (Value stream Mapping, 5S, Continuous improvement).
• Encourage employees involvement in waste reduction.
Supplier Collaboration
• Collaborate with suppliers to reduce packaging waste.
• Encourage suppliers to adopt sustainable practices.
• Explore opportunities for closed-loop systems.
Energy and Resource Efficiency
• Implement energy-efficient technologies and equipment to reduce energy
consumption and associated waste.
 Cercular Economy

• Economic model that aims to minimize waste, maximize resource efficiency, and
promote sustainability.
• Resources are kept in use for as long as possible.
• Key Principles of circular economy include:
• Design for Circularity.
• Resource Efficiency.
• Extended Product Lifespan.
• Recycling and Waste Management.
• Collaboration and Innovation.