Packaging manufacturers face a difficult situation, having to navigate narrow profit margins, increasing customer demands, and regulatory challenges. While waste management might initially appear as...
Packaging manufacturers face a difficult situation, having to navigate narrow profit margins, increasing customer demands, and regulatory challenges.
While waste management might initially appear as an additional challenge for packaging converters, adopting a strategic approach can turn it into a competitive advantage.
Avoiding waste issues such as excess production, defects, and poor storage, can increase profits and growth. Read on for an overview...
Contents
- Why Should Waste Management be a Priority for Packaging Converters?
- What is Manufacturing Waste?
- DOWNTIME in Six Sigma and Lean Manufacturing
- How can Packaging Manufacturers Unlock New Levels of Efficiency, Profitability, and Sustainability?
Why Should Waste Management be a Priority for Packaging Converters?
Waste management should be viewed not as an operational necessity, but as a strategic opportunity. Industry studies show that reducing waste by just 1% can lead to a 2.5% increase in profits. So, a reduction in waste by $50,000 can bring a potential $125,000 increase in profit.
Conversely, inefficiencies such as excess production, defects, and poor inventory management continue to cost companies millions annually.
For management, it is important to understand waste reduction and its real benefits. This knowledge helps maintain competitiveness in an industry with tight margins and increasing sustainability pressures. To achieve this, organizations strive for a lean model. This approach helps reduce anything unnecessary or that does not add value for customers.
Implementing robust waste management strategies enhances productivity, aligns production with customer demand, and ensures the optimal use of resources. When combined with technological advancements, such as real-time monitoring systems and workflow automation, waste management becomes a powerful driver of profits and sustainability.
What is manufacturing waste?
Manufacturing waste is defined as any activity or process that does not add value to the final product. To address this, manufacturing companies aim for a lean model. This model helps cut out activities that do not add value for customers.
DOWNTIME in Six Sigma and Lean Manufacturing
Lean manufacturing principles and Six Sigma methodologies categorize eight types of waste, DOWNTIME:
- Defects: Any items that do not meet customer specifications are considered defective. These items are ineffective because they need extra resources to fix the problem
- Overproduction: This happens when you misjudge supply and demand. This results in wasted resources. You may have to discount extra products or store them.
- Waiting: Bottlenecks in your manufacturing process can lead to wasted time, either through underutilized equipment or idle labor.
- Non-Utilized Talent: Effectively managing your employees and contractors is crucial to reducing waste. Team members who lack engagement, and proper training, or who are either underutilized or overburdened contribute to waste
- Transportation: Unnecessary movement of tools, equipment, or information can waste time and effort.
- Inventory: We exist in a ‘just in time’ world. So whenever you hold inventory, there is a chance to cut down on the wasted expenses linked to its management.
- Motion: The movement of team members, information, parts, and equipment can create a lot of small waste over time.
- Extra Processing: Actions that do not aid in creating your final product or service can lead to waste. Recognizing and eliminating these unnecessary steps can conserve time and resources.
How can packaging manufacturers unlock new levels of efficiency, profitability, and sustainability?
Packaging manufacturers can reduce waste by using lean principles, Six Sigma tools, optimizing inventory, and improving scheduling and workflow. We're eager to learn how we can help you. To start a conversation centered on your goals and how we can support you, get in touch.
