Waste Utilization and Cost Cutting benefits in Manufacturing

Companies around the globe are finding ways to increase profit and to reduce cost. This has created lot of opportunities to seek waste utilization and cost cutting techniques. On one side these will save the environment but on the flip side manufacturing companies are being greatly benefited. Waste utilization is a process through which waste available in the manufacturing units are collected, segregated and processed (waste treatments). This will create lot of recycled products that can be used for various purposes within the company. With this approach there is significant reduction of waste and environmental pollution. Recycling of waste should be taken up as a measure by all manufacturing companies to protect their environment. 
Seven wastes
Picture Source: slideshare
Waste is usually segregated into three types namely: liquid, solid and gaseous waste through various methods. However, instead of just concentrating on the waste management, it is equally important to understand if the manufacturing company is using the resources in an optimum manner. This check will help in first reducing the wastage from raw materials and its processing. The left overs of processing are the actual waste derived from these manufacturing processes. By the term waste, it does not just always mean wastage of raw materials but can also be wastage of water, electricity, fuel and other types of overheads. 
Here are some of the types of cost which requires additional focus from every manufacturing company. It will not just help in saving some money, but will also reduce time and effort spent on the same. 

• Disposal cost
• Wasted raw material’s purchase cost
• Inefficient energy usage cost
• Wasted material’s production cost
• Revenue loss on wasted products
• Time and effort spent on the management of waste material
• Potential liabilities created due to wastage in the manufacturing industry

If you are looking to make your manufactured products more competitive and efficient, then effort should be put on reducing wastage and also optimum utilization of wastage created by processing raw materials into goods. It is quite natural to have wastage created across all types of industries, but unless it is tackled in a right manner, it is not easy to generate maximum revenue with standard level of input. Per recent studies, it is concluded that nearly 10% of profit uptick can be gained through waste minimization techniques and by looking for measures to reduce cost on various other areas of production and assembling. 
Waste management
Picture Source: rethinkwaste.com.au
Waste utilization and cost cutting in manufacturing companies are efforts to increase resource productivity. The flow of this is in such a fashion that first the manufacturing companies should try to prevent wastage, then should put efforts to minimize wastage. Available waste should be reused and recycled to recover energy. But at the same time, it is important to make sure the benefit of recycled products is greater than effort spent on recycling. There the three key terms to be considered in every manufacturing company to save effort, time and cost is optimum usage of material, recycling and product modification.
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About the Author: Arjun N

Founder of SolutionBuggy who has about 11+ years of experience in manufacturing industries. An entrepreneur with astute sales and marketing skills.

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