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Reducing Waste in
Packaging Manufacturing:
An Expanded Guide for
Packaging Manufacturers

How can packaging manufacturers unlock new levels of efficiency, profitability, and sustainability?

With the convergence of tight margins, growing customer expectations, and regulatory pressures this eBook aims to share some actionable insights for packaging manufacturers to not only navigate waste management challenges; but transform them into a robust competitive advantage.

Here's everything we'll look at...

01

> Understanding Waste in Manufacturing

02

> Key Strategies for Waste Management

03

> Reducing Specific Types of Waste in Packaging Manufacturing

04

> Using Technology to Drive Efficiency in Packaging Manufacturing 

05

> Engaging Employees in Waste Reduction


06

> Continuous Improvement

07

> Measuring and Reporting Waste

08

> Leveraging Inventory Management

09

> Sustainability and Carbon Footprint Reporting

10

> Brand Owners Driving Efficiency

11

> Summary

01
Understanding Waste in Manufacturing

Lean manufacturing principles and Six Sigma methodologies categorize waste into the following types, each highly relevant to packaging operations in the folding carton, labels, and flexible packaging industries:

  • Transport

    Moving materials like paper rolls, inks, or die cuts around the factory floor unnecessarily can lead to inefficiencies and higher costs. For instance, transporting raw materials to machines located far apart increases forklift fuel consumption and labor costs. A reconfiguration of the factory floor can mitigate this.

  • Waiting

    Idle time, such as machines waiting for operators to set up or materials to arrive, is a common issue. For example, a press operator waiting on paper delivery due to poor scheduling wastes both labor and machine hours. 

  • Motion

    Excessive movement, such as workers retrieving tools from distant storage areas, wastes time. Organizing materials closer to their points of use and adopting 5S principles (a five-step process for organizing a workspace to improve productivity, reduce waste, and increase safety) can reduce this inefficiency. 

  • Overproduction

    Creating more inventory than required, like excess printed labels or cartons, leads to unused stock that often becomes obsolete or damaged. 

  • Overprocessing

    Unnecessary steps, such as repeated color adjustments during printing, often arise from unclear specifications or poor equipment calibration. 

  • Defects

    Errors like misaligned prints or incorrect die cuts result in scrapped materials and rework. Monitoring defect rates and training staff in proper handling reduces such losses. 

  • Inventory

    Overstocking raw materials or finished goods, such as an overabundance of pre-printed holiday-themed bags, ties up working capital and occupies valuable storage space. Regular inventory audits and Just-in-Time (JIT) ordering can mitigate these challenges. 

02
Key Strategies for Waste Management

Effective waste management for packaging converters and manufacturers requires targeted strategies to address inefficiencies throughout the entire production process.

Here are four strategies to eliminate waste, improve efficiency, and enhance profitability.

1. Implement Lean Principles

Lean manufacturing emphasizes the relentless elimination of non-value-added activities and the pursuit of continuous improvement. 

For packaging manufacturers, this means regularly auditing processes to identify waste hotspots, such as excessive material transport or redundant quality checks. 

Tools like Value Stream Mapping (VSM) allow businesses to visualize workflows, identify inefficiencies, and restructure processes. For example, a folding carton manufacturer could use VSM to discover bottlenecks in the die-cutting stage and then redesign the workflow to streamline material movement.

Applying lean principles ensures every process step adds value, aligns with customer requirements, and reduces overall waste. 

2. Leverage Six Sigma Tools

Six Sigma’s structured methodology, DMAIC (Define, Measure, Analyse, Improve, Control), provides a data-driven approach to waste reduction.

For example: 

  • Define: Identify recurring waste problems, such as excessive scrap during label printing.
  • Measure: Quantify waste through KPIs like material scrap rates or machine downtime using tools like AutoCount4D.
  • Analyse: Investigate root causes, such as poor calibration or insufficient operator training.
  • Improve: Implement solutions, such as enhanced operator training or upgrading equipment.
  • Control: Use real-time monitoring to ensure waste reductions are sustained. This approach helps manufacturers address issues systematically, from overprocessing in lamination to high defect rates in printed film rolls. 

3. Optimize Inventory Management

Poor inventory management often leads to overstocking raw materials or finished goods, tying up capital and increasing waste.

Packaging manufacturers can mitigate these issues by:

  • Appointing an Inventory Manager: A skilled professional can oversee stock levels and ensure that materials such as cardboard sheets or ink are ordered and used efficiently.
  • Using Advanced Software: Tools like Radius and AutoCount4D provide real-time inventory tracking, enabling businesses to maintain optimal stock levels and reduce obsolescence. For instance, a flexible packaging company can monitor roll usage closely to prevent excess inventory and minimize material waste.

4. Improve Scheduling and Workflow

Scheduling inefficiencies are a significant source of waste in packaging operations. Automating scheduling with tools like PrintFlow4D can optimize production sequences, minimize changeovers, and reduce manual scheduling errors. For example, a folding carton manufacturer could use PF4D to schedule die-cutting jobs in a way that minimizes setup times between runs of similar designs. Additionally: 

  • Staging Materials in Advance: Ensuring that raw materials, such as paper rolls or adhesives, are prepared and positioned before production begins avoids delays and maximizes machine utilization.
  • Eliminating Cherry-Picking of Jobs: Workers sometimes reorder production priorities without considering downstream impacts, leading to inefficiencies. Standardizing job sequencing based on deadlines and resource availability ensures smooth workflows.

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...research indicates that businesses practicing lean principles can achieve up to a 25-40% reduction in overall waste, leading to substantial cost savings and improved sustainability metrics. Furthermore, companies implementing real-time monitoring systems report a 20-30% increase in operational efficiency, enabling faster production cycles and better resource utilization...

03
Reducing Specific Types of Waste in Packaging Manufacturing 

To improve operational efficiency and profitability it’s vital to understand how to address the key waste categories commonly found in folding carton, labels, and flexible packaging production. 

Find out what they are below, and how to address them.

Overproduction

Overproduction is a significant issue in packaging manufacturing, leading to excess inventory and wasted resources. This often stems from fear of underproduction, inaccurate estimates, or poor demand forecasting. 

This issue and poor estimating practices can lead to waste that ties up capital and storage space. By offering enhanced training for customer service teams, estimators, and production staff, the company can address the root causes of overproduction. 

Example: Printing large quantities of seasonal packaging that cannot be reused or stocking excessive raw materials.

  • Demand Matching

    Use demand forecasting tools to align production with real customer needs. Systems like Radius ERP provide real-time order tracking and inventory insights, reducing the risk of producing excess stock. 

  • Prevent Overestimating

    Poor estimating practices can lead to systemic overproduction. For instance, estimators may add unnecessary safety margins or overinflate production requirements to account for potential errors or waste, exacerbating inventory issues. Implementing stricter guidelines and training for estimators ensures estimates reflect realistic production needs. 

  • Estimator Accountability

    Train estimators on best practices to avoid overcompensating for perceived risks. Encourage data-driven decision-making supported by historical production data and accurate job specifications. Focusing on reducing “buffer” estimates while ensuring precise calculations will minimize waste and unnecessary resource usage. 

  • Customer Service Oversight

    Customer service teams should also be trained to place precise orders. Avoid the common pitfall of overordering as a safeguard against potential production errors. Clear communication between estimators, customer service, and production teams can mitigate this issue. 

  • Inventory Control

    Implement Just-in-Time (JIT) production to create items only as needed. This reduces the likelihood of overproduction and minimizes the cost of storing excess inventory.

Motion

Motion waste occurs due to inefficient layouts and workflows that lead to unnecessary movement of materials, equipment, and/or employees.

Example: A folding carton plant, poorly positioned die cutters or folder-gluers can cause significant forklift travel across the shop floor. 

  • Linear Workflow Design

    Arrange equipment in logical sequences, such as placing printing presses adjacent to die cutters and folder-gluers. This reduces the distance materials need to travel, streamlining the process and saving time. 

  • 5S Principles

    Adopt Lean 5S principles (Sort, Set in Order, Shine, Standardize, Sustain) to keep workstations organized and reduce unnecessary trips to retrieve tools or materials. 

Defects

Defects result in wasted materials, time, and effort.

Common defects in packaging include misaligned prints, damaged cartons, or incorrect labeling, all of which require rework or scrapping. 

  • Quality Control Integration

    Use tools like AC4D for real-time defect monitoring. For instance, operators can track print alignment during production to catch errors early, reducing material waste. 

  • Operator Training

    Standardize training across teams to ensure consistent handling and setup. Proper training can significantly reduce setup errors that lead to defects. 

  • Six Sigma Tools

    Apply Six Sigma methodologies to analyze defect trends and identify root causes. For example, analyzing frequent print misalignments might reveal calibration issues with specific equipment. 

Waiting 

Idle time caused by machine downtime or delays in material availability is a hidden cost that reduces operational efficiency.

Example: A press operator waiting for paper delivery or a machine left idle due to unscheduled maintenance. 

  • Optimized Scheduling

    Use automated scheduling tools like PrintFlow to coordinate jobs and minimize downtime. Effective scheduling ensures that machines are utilized efficiently, and materials are available when needed.

  • Predictive Maintenance

    Implement predictive maintenance systems to prevent unexpected equipment breakdowns. By scheduling maintenance during planned downtimes, manufacturers can ensure continuous workflows.
     

  • Staging Materials

    Ensure raw materials are staged well before production to avoid delays. For example, preparing the correct die plates for carton production reduces idle machine time.

04
Using Technology to Drive Efficiency in Packaging Manufacturing

Technology is a critical enabler for driving efficiency and reducing waste in packaging manufacturing. By leveraging advanced tools for business intelligence, workflow integration, and automation, packaging converters, and manufacturers can streamline operations, enhance decision-making, and reduce operational costs. 

Below are key technological strategies tailored for the packaging industry. 

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Business Intelligence (BI) and Analytics 

Data Insights tools empower packaging companies with real-time and historical insights, enabling better decision-making and waste management. 

  • Monitor KPIs: EPS Radius BI can track key performance indicators (KPIs) such as material scrap rates, machine uptime, and defect percentages. For instance, monitoring high scrap rates in a particular shift can reveal training needs or machine calibration issues. 
  • Visual Dashboards: BI dashboards present complex data in a user-friendly format, making it easier to identify trends and problem areas. For example, a dashboard displaying machine utilization rates can highlight underperforming equipment, prompting timely maintenance or resource reallocation.
  • Practical Use Case: Business Intelligence (BI) tools deliver actionable insights to enhance scheduling and minimize waiting waste. Manufacturers can optimize machine schedules by analyzing historical production data to achieve maximum utilization.
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Integration with Workflow Systems

Effective integration of workflow systems eliminates redundant processes, reduces manual errors, and enhances transparency across departments. 

  • Software Integration: Employing midware such as ePS Fusion enables seamless data exchange between different departments and systems, such as production and inventory management. This integration reduces the need for manual data entry, which can introduce errors or delays.
     
  • ERP Connectivity: Connecting real-time shop floor data to ERP systems like Radius ERP provides accurate reporting and planning. For instance, live data from folding carton presses can update inventory counts instantly, ensuring material availability for subsequent production runs.

  • Shop Floor Insights: Integration allows manufacturers to track machine performance in real-time, providing immediate feedback to operators. For example, if a machine's output deviates from the standard, adjustments can be made before significant waste accumulates
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Automation 

Automation minimizes manual intervention and human error, ensuring consistent output and streamlined operations. 

  • ePS Automator: Automating repetitive tasks like scheduling, reporting, and data entry using ePS Automator allows employees to focus on higher-value activities. For example, automating scheduling for label printing can optimize job sequences to minimize setup time and material waste.
     
  • Real-Time Adjustments: Automation tools can dynamically adjust workflows based on live data. For instance, an automated system might halt production if a defect threshold is exceeded, preventing further material loss.

  • Workflow Consistency: Automating quality checks ensures uniformity in output. For example, integrating AutoCount4D with production lines can automate defect detection and notify operators immediately, reducing rework costs. 
chart-scatter-bubble
Business Intelligence (BI) and Analytics 

Data Insights tools empower packaging companies with real-time and historical insights, enabling better decision-making and waste management. 

  • Monitor KPIs: EPS Radius BI can track key performance indicators (KPIs) such as material scrap rates, machine uptime, and defect percentages. For instance, monitoring high scrap rates in a particular shift can reveal training needs or machine calibration issues. 
  • Visual Dashboards: BI dashboards present complex data in a user-friendly format, making it easier to identify trends and problem areas. For example, a dashboard displaying machine utilization rates can highlight underperforming equipment, prompting timely maintenance or resource reallocation.
  • Practical Use Case: Business Intelligence (BI) tools deliver actionable insights to enhance scheduling and minimize waiting waste. Manufacturers can optimize machine schedules by analyzing historical production data to achieve maximum utilization.
arrow-progress
Integration with Workflow Systems

Effective integration of workflow systems eliminates redundant processes, reduces manual errors, and enhances transparency across departments. 

  • Software Integration: Employing midware such as ePS Fusion enables seamless data exchange between different departments and systems, such as production and inventory management. This integration reduces the need for manual data entry, which can introduce errors or delays.
     
  • ERP Connectivity: Connecting real-time shop floor data to ERP systems like Radius ERP provides accurate reporting and planning. For instance, live data from folding carton presses can update inventory counts instantly, ensuring material availability for subsequent production runs.

  • Shop Floor Insights: Integration allows manufacturers to track machine performance in real-time, providing immediate feedback to operators. For example, if a machine's output deviates from the standard, adjustments can be made before significant waste accumulates
circle-nodes
Automation 

Automation minimizes manual intervention and human error, ensuring consistent output and streamlined operations. 

  • ePS Automator: Automating repetitive tasks like scheduling, reporting, and data entry using ePS Automator allows employees to focus on higher-value activities. For example, automating scheduling for label printing can optimize job sequences to minimize setup time and material waste.
     
  • Real-Time Adjustments: Automation tools can dynamically adjust workflows based on live data. For instance, an automated system might halt production if a defect threshold is exceeded, preventing further material loss.

  • Workflow Consistency: Automating quality checks ensures uniformity in output. For example, integrating AutoCount4D with production lines can automate defect detection and notify operators immediately, reducing rework costs. 

05
Engaging Employees in Waste Reduction

Employee engagement is crucial, shop floor employees are often the first to identify inefficiencies and can provide valuable insights for resolving them. 

To harness their potential: 

  • Training: Educate employees on lean principles and Six Sigma methodologies to help them identify waste. For example, train press operators to recognize waiting waste caused by scheduling delays or idle machines and encourage them to suggest improvements.
  • Incentives: Encourage employees to suggest innovative ideas for waste reduction. Operators who propose changes to the layout to minimize motion waste—such as relocating materials closer to their point of use—can receive recognition or bonuses. This approach fosters a culture of innovation and accountability.
  • Collaboration: Facilitate open communication among operators, maintenance teams, and managers. Daily meetings can be a platform to discuss common challenges, such as frequent machine breakdowns or recurring defects, and collaboratively develop solutions. Engaged teams are more likely to take ownership of waste-reduction goals and actively contribute to their achievement​. 
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06
Continuous Improvement

Sustaining waste reduction requires an ongoing commitment to improvement. Packaging manufacturers must embed a culture of continuous improvement into their operations to address evolving challenges: 

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Regular Audits

Conduct "waste walks" (Management by Walking Around) to identify inefficiencies on the shop floor.

For instance, auditors might notice duplicate paperwork or unnecessary material handling during carton production.

By addressing these issues promptly, companies can prevent waste from escalating​​.

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Feedback Loops

Review waste metrics regularly to assess progress and identify new opportunities for improvement.

For example, monthly reviews of defect rates in die-cutting operations can reveal trends requiring action, such as recalibrating equipment or retraining staff.

A continuous improvement approach ensures that waste-reduction efforts remain effective over time​.

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Low-Hanging Fruit

It is crucial to address easily solvable inefficiencies first.

Quick wins, such as reorganizing disorganized workstations or ensuring that all raw materials are prepared before production begins, can provide immediate benefits while establishing a foundation for larger initiatives.

magnifying-glass-chart
Regular Audits

Conduct "waste walks" (Management by Walking Around) to identify inefficiencies on the shop floor.

For instance, auditors might notice duplicate paperwork or unnecessary material handling during carton production.

By addressing these issues promptly, companies can prevent waste from escalating​​.

arrows-rotate
Feedback Loops

Review waste metrics regularly to assess progress and identify new opportunities for improvement.

For example, monthly reviews of defect rates in die-cutting operations can reveal trends requiring action, such as recalibrating equipment or retraining staff.

A continuous improvement approach ensures that waste-reduction efforts remain effective over time​.

apple-whole
Low-Hanging Fruit

It is crucial to address easily solvable inefficiencies first.

Quick wins, such as reorganizing disorganized workstations or ensuring that all raw materials are prepared before production begins, can provide immediate benefits while establishing a foundation for larger initiatives.

07
Measuring and Reporting Waste

Accurate measurement and reporting are essential for tracking progress and maintaining accountability in waste reduction efforts. Packaging manufacturers can leverage advanced tools to monitor key waste metrics: 

  • KPIs: Use tools like AutoCount4D to track critical metrics, including scrap rates, machine uptime, and defect percentages. For example, a manufacturer might monitor the percentage of scrap material generated during folding carton production and set reduction targets​​.
  • Real-Time Reporting: Dashboards provide immediate feedback to operators, enabling quicker responses to inefficiencies. For instance, displaying real-time defect rates on monitors near production lines can help operators identify issues as they occur, reducing rework costs​​.
  • Periodic Reviews: Compare historical data to current metrics to evaluate the effectiveness of waste-reduction strategies. Reviewing trends over several months can help identify recurring issues, such as excessive motion waste in specific departments, and guide corrective actions​. 
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08
Leveraging Inventory Management

Effective inventory management is a cornerstone of waste reduction in packaging manufacturing. Poor inventory control often leads to overproduction, excessive stockholding, and increased waste costs. 

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Dedicated Inventory Managers

Many organizations do not have dedicated inventory managers, so stock control is often left to operators who may not have the required skills. By appointing a dedicated inventory manager trained in Six Sigma, one organization reduced waste costs from nearly $500,000 to just $2,500 within a year. This demonstrates the significant financial benefits of professional inventory management. 

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Integrated Monitoring Tools

Real-time systems like AutoCount4D provide continuous visibility into inventory levels, helping managers make informed decisions. For instance, tracking raw material consumption in real time can prevent overordering or misallocation of resources​.

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Preventing Overstocking

Employ tools like Radius ERP to implement Just-in-Time (JIT) practices, ensuring that materials like paper rolls or ink supplies are replenished based on actual demand rather than estimates. This reduces the risk of stock obsolescence and minimizes carrying costs​​.

09
Sustainability and Carbon Footprint Reporting

Sustainability is becoming a non-negotiable priority in the packaging industry. As brand owners increasingly demand eco-friendly practices, packaging converters, and manufacturers must adapt to meet these expectations.

Efficient waste management reduces costs and minimizes environmental impact—a goal closely linked to operational sustainability. 

Key strategies for sustainability: 

  • Carbon Footprint Reporting: Many brand owners now require detailed carbon footprint reports for each job to ensure their supply chains align with environmental targets. Sustainability reporting tools and platforms help packaging manufacturers calculate and report the environmental impact of their production processes.
  • Minimizing Material Waste: Reducing waste directly lowers operations' carbon footprint. Avoiding overproduction reduces the need for raw materials and the energy associated with processing, transport, and storage.
  • Energy-Efficient Processes: Implementing energy-efficient machinery and workflows can further reduce greenhouse gas emissions. Pairing these efforts with renewable energy sources strengthens a company’s commitment to sustainability.
  • Case in Point: Packaging manufacturers who adopt carbon footprint reporting can gain a competitive edge by providing brand owners with transparent data, enabling them to meet corporate sustainability goals. This fosters trust and strengthens long-term business relationships.
ePS Packaging - Packaging Sustainability

10
Brand Owners Driving Efficiency 

Brand owners are increasingly pushing for waste reduction and sustainable practices. As packaging plays a pivotal role in branding and customer experience, these stakeholders demand efficiency and environmentally responsible production methods. 

  • Efficient Production

    Brand owners expect shorter lead times and fewer material inputs without compromising quality. This demands greater precision in material cutting, printing, and assembly processes. 

  • Sustainability Metrics

    Reporting on metrics like waste levels, energy consumption, and carbon emissions is becoming a standard requirement. Manufacturers that meet these demands can position themselves as preferred partners in the supply chain. 

  • Innovation in Materials

    There is a growing demand for recyclable, compostable, or biodegradable materials, which require careful integration into production workflows to avoid inefficiencies or defects. 

  • Impact on Packaging

    Manufacturers: Meeting these demands requires significant investment in technology, training, and reporting systems. However, those who adapt can secure contracts with leading brands and improve their market standing.

11
Summary

The ripple effects of waste reduction extend beyond financial gains. Companies that actively reduce waste report higher employee satisfaction due to streamlined workflows and a sense of contribution to sustainability goals. Moreover, a cleaner, more efficient operation signals to customers and partners that your organization is committed to innovation and environmental responsibility—an increasingly important factor in today’s business landscape. 

In addition, sustainability is no longer optional but a key demand from brand owners. With growing requirements for carbon footprint reporting and transparency in production processes, sustainability tools empower packaging manufacturers to provide detailed environmental data. Meeting these demands enhances credibility and attracts contracts from environmentally conscious brands. Research shows that combining sustainability with efficiency initiatives can reduce operational costs by 20-30% while bolstering brand reputation. 

Consider the Numbers: Every 1% reduction in waste can yield a 2.5% increase in profitability. For a business, reducing waste by  $200.000 annually, can equates to an additional $500,000 — a testament to the power of strategic waste management. Beyond this, aligning with brand owners’ sustainability goals by reducing carbon footprints and adopting eco-friendly practices further strengthens competitive positioning. 

By taking action today—investing in technology, training employees, and fostering a culture of continuous improvement—you can ensure your organization remains agile, competitive, and ready to lead in an industry where efficiency and sustainability are paramount. Waste reduction is not just about cutting costs; it’s about creating value, driving growth, and securing a prosperous future for your company and customers.

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