Companies have centered their goals around sustainability and efficiency. How can you optimize your operations for the 21st century? It starts with reducing manufacturing waste.
Here are 11 strategies to minimize it for smoother business affairs.
1. Waste Audits
Before reducing manufacturing waste, a company must understand where it originates. An audit answers these questions by identifying the most impactful areas and where business leaders should begin.
This process ensures manufacturers comply with regulations, wisely spend capital and minimize their environmental impact. With a holistic approach, your company can become more efficient. For instance, a manufacturer could scrutinize its production waste. Company leaders investigate the losses stemming from scrap metal, wood and paper.
Waste reduction strategies could arise after finding high usage of single-use plastics. Alternatively, the audit could reveal the company’s suboptimal hazardous waste segregation.
While manufacturers may spend millions on audit fees, they can be worth it in the long run.
2. Renewable Energy Technologies
When searching for waste reduction opportunities, one of the best places to start is energy sources. Fossil fuels generate waste through greenhouse gases (GHGs) like nitrogen oxide (NOx) and carbon dioxide (CO2).
Transitioning your company to renewables is critical for reducing environmental impact and the associated costs. For manufacturers, it starts with the machines and vehicles used in operations.
Reducing manufacturing waste through cleaner energy is prevalent in the automotive industry. These companies are transitioning to electric vehicles (EVs) because they emit no GHGs and have regenerative braking systems.
Company leaders can increase renewable usage in manufacturing facilities through electric forklifts and robots. Past machines required fossil fuels, but these equipment options harness electricity instead.
3. Automation Incorporation
Waste reduction requires cooperation and innovation from an entire team. However, it doesn’t have to include only the company’s human members. What if artificial intelligence (AI) joined the process?
AI and its subsets can be valuable in mitigating waste through automation. This digitalization tactic lets manufacturers improve accuracy and reduce mistakes in production. Therefore, your company benefits from top to bottom.
Robotics is among the most prevalent examples of automation in manufacturing. These machines reduce waste by increasing precision in welding and lowering the risk of material distortion.
The benefits of automation and robots extend to other facets of the manufacturing floor. For example, these technologies improve safety by handling high temperatures and heavy objects.
4. Proper Demand Forecasting
Manufacturers with efficient operations can produce more goods and services in each shift. However, this enhanced performance could lead to overproduction and waste if you aren’t careful.
Demand forecasting is one of the best ways to tackle this waste problem. When you accurately gauge consumer feelings, you can more easily decide how much your company must produce.
Proper demand forecasting can originate from numerous data points. You could use a historical sales analysis to see how demand changes throughout the year. Then, your company can adjust to periods when production must dip.
Forward-thinking manufacturers may implement predictive analytics when forecasting demand. This strategy leverages significant industry datasets to predict the future. Therefore, it may catch aspects that other companies miss.
5. Innovative Inventory Management
Demand forecasting is one part of modern inventory management. This software can streamline processes and reduce manufacturing waste in numerous areas. Then, the risk of overstocking or underestimating demand decreases.
Inventory management gives company leaders a clearer picture of their stock levels. With real-time monitoring, you know when to replace specific materials. Automated systems can handle the job for you and decrease the need for human intervention.
A hallmark of modern inventory management is the ability to recover materials. With integrated recycling programs, a manufacturer can use its software to identify uses for its surplus. Then, the company produces less waste from its operations.
Manufacturers have numerous inventory management strategies at their disposal. From weighted average cost (WAC) to economic order quantity (EOQ), business leaders can make smarter decisions.
6. Lean Manufacturing Principles
Eliminating waste means applying lean manufacturing principles on the factory floor. For example, just-in-time models produce goods to meet demand and prevent surpluses. Toyota is one of the most prominent examples in automotive manufacturing. Watch this video to learn more about the just-in-time system:
Ensuring lean manufacturing means applying advanced technologies to your operations. The Internet of Things (IoT), cloud computing and blockchain all reduce waste through real-time information and improved collaboration.
Another significant focus area for manufacturers is the production line. How can your company reduce the waste associated with your assembly zones? Air casters have become essential in mitigating these losses.
These devices leverage compressed air to move heavy objects. Experts say a single operator can move machines up to 5,000 pounds by using air casters. This technology reduces wasted time, labor and resources for manufacturers.
7. Employee Education
Factories and machines can be wasteful in manufacturing settings. However, it’s essential to consider the employees using these technologies. Are they optimizing resources or contributing to inefficiencies?
Manufacturing companies can reduce waste by educating their workers on best practices. They can also usher in new employees and retrain longtime workers so they understand modern techniques.
From quality control to material handling, businesses have numerous educational opportunities. Supervisors could teach employees to segment hazardous materials or minimize damage when handling packages.
While company leaders should develop waste reduction strategies, the best ideas could originate from factory workers. Encourage longtime employees to identify waste and introduce ideas to combat it.
8. Optimized Packing Procedures
Packaging is an underrated yet significant form of manufacturing waste. Packaging materials, recyclability and product protection go a long way toward improving sustainability. With proper selections and techniques, companies can lower their environmental impact.
First, consider the materials used. If your company uses lightweight and strong packaging, the products are less likely to end up as waste. Cardboard packaging is an excellent example due to its durability and protection in transit.
Post-consumer usage is also critical for your packaging materials. Will they break down in landfills, or will they contribute to pollution? Manufacturers must choose packaging with limited environmental impact.
Manufacturers can control waste production through their packaging design. Your business should design each shipment for disassembly, meaning it’s easy to recycle. Then, only use the amount of packaging necessary for shipping.
9. Recycled Material Usage
The Environmental Protection Agency (EPA) says waste has decreased in the last decade. What is the primary contributor to the downward curve? Increased recycling has been integral.
Recycled materials help manufacturers reduce waste by decreasing the need for raw materials. When fresh timber or fossil fuels aren’t necessary, a company minimizes its environmental impact.
Implementing reused items goes beyond a manufacturer’s sustainability practices. Companies using recycled steel or aluminum prevent wasted items from entering landfills.
Modern practices make recycled materials more practical than in the past. For example, recycled cotton reduces excess water use and doesn’t rely on pesticides. It also prevents land degradation that can occur in agricultural settings.
10. Life Cycle Assessments
Waste reduction also relates to how useful products are throughout their life span. When developing goods, manufacturers must consider their environmental impacts through life-cycle assessments (LCAs).
An LCA tells your company where the most prominent waste reduction opportunities are. For instance, your initial examination may reveal what’s most notable in your disposal techniques. Then, you can build strategies to reduce the waste in the future.
LCAs are productive because they let manufacturers start from the beginning and look to the future. Company leaders can use end-of-life scenarios to develop recycling programs and reduce waste output.
These examinations are essential for internal goals and environmental regulations. Properly executing and documenting LCAs puts your company in better compliance shape. The business also benefits from reputational boosts with shareholders and suppliers.
11. Supplier Collaboration
Manufacturers can reduce waste through their in-house operations. However, suppliers and other businesses might not align with their vision. Therefore, collaboration and communication are necessary for these goals.
A manufacturing company’s environmental impact extends outside the factory walls. If a supplier ethically sources materials and recycles, its reputation and operations benefit others in the supply chain.
Manufacturing waste can originate from numerous sources, so it’s essential to be comprehensive in the supply chain. From transportation to processing, your company must be aware of external risks.
Unsustainable practices may require extra communication and reconsideration for future projects. For instance, an automaker may work with a supplier using inefficient energy practices. Cutting waste means communicating with the business and outlining more efficient strategies.
Reducing Waste in Manufacturing Sector
From the automotive industry to construction, manufacturing companies produce waste. Reduction can be challenging, though it’s essential for the planet’s health.
Manufacturing is prominent worldwide, so producers must be aware of emissions and hazardous materials. Unmitigated waste could significantly damage water sources and harm community members.
Modern innovations have made waste reduction more manageable. Sustainable packaging and lean manufacturing principles lead the way in improved operations.
While materials and processes matter, reducing waste also includes the people involved. Companies must educate employees on best practices and collaborate with suppliers. Transparency increases when all stakeholders participate in waste mitigation.
Frequently Asked Questions
What are the seven wastes in manufacturing?
The seven manufacturing wastes include overprocessing, transportation, waiting, motion, inventory, defects and overproduction. Taiichi Ohno, a Toyota engineer, developed the seven wastes he called muda. These principles led to Toyota’s just-in-time production model, which is still used today. With Toyota’s inspiration, companies in other industries have followed suit.
What is the meaning of 5S?
It’s a five-step process including Japanese terms like seiri, seiton, seiso, seiketsu and shitsuke. These words translate to sort, set in order, shine, standardize and sustain. When manufacturers implement this protocol, they reduce waste and incorporate long-term reduction solutions. Some companies add a sixth category called safety.
Why is manufacturing waste harmful?
Manufacturing waste is bad because of its environmental impact. When companies don’t properly manage it, the waste pollutes the surrounding air and water. Contaminated waterways are among the most significant consequences, harming humans and wildlife. Landfills are another issue, as materials decompose in landfills and generate methane.
References
Manufacturers Alliance: Audit Fee Benchmark 2024
Toyota: Toyota Production System
EPA: Manufacturing Waste Management Trend
Internal Resource Library: Taiichi Ohno & 7 Wastes
