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Reduce Waste In Your Business
Did you know?
On average, just 5% of the time spent in an organisation is dedicated to value-adding activities. Those are the core activities that allow you to deliver the product or service your customers truly value.
Let that sink in for a moment.
Imagine, out of the entire spectrum of activities…
From receiving an order to delivering a service, only 5% contributes directly to what your customers pay for. The remaining 95% is either pure waste or spent on internal business requirements that don't add value for your customers. This might raise eyebrows, and understandably so.
However, our thorough analysis, backed by concrete data, consistently reveals this pattern. I shared this so you can identify areas for improvement in business you might have overlooked.
To make the task of waste identification more manageable, consider a structured approach. You do this by looking specifically at the nine forms of waste in a business:
1 - Waiting
Any idle time in a process, whether it's waiting for information, orders in a queue or customers left waiting, it signifies an opportunity for improvement.
2 - Overproduction
Making more than what’s required of customer orders can lead to excess and unnecessary waste.
3 - Over Processing
This means doing more than necessary to complete a task. It includes things like double-handling or confirming order details excessively.
4 - Defects and Mistakes
This is self-explanatory but crucial to address for improved efficiency.
5 - Movement
The unnecessary movement of people or items that don't add value to the final product or service can contribute to waste.
6 - Inventory
Excessive stock ties up cash. And it can also lead to additional waste such as double-handling or storage-related inefficiencies.
7 - Transport
Ensure that the movement of goods is as efficient as possible to minimise waste.
8 - Space
Efficiently utilise available space to minimise associated costs.
9 - Unused Expertise
Tap into the knowledge existing within your team to identify improvements. They may have valuable insights to help you improve your business processes. Addressing these forms of waste isn't about pointing fingers or creating blame.
It's more about unlocking hidden potentials within your organisation, maximising value for your customers, and boosting overall efficiency.
Start reducing these wastes and see how much better your business operations can perform.