Reducing Wastage

In This Section, You Will Learn:

• • Types of wastage in manufacturing
• • Identifying waste in your process
• • Reducing material waste
• • Time efficiency improvements
• • Bulk buying strategies

Types of Wastage

• Material Wastage:
• • Spills and overflows
• • Measuring errors
• • Failed batches
• • Expired materials
• Time Wastage:
• • Searching for tools/materials
• • Redoing mistakes
• • Inefficient process flow
• • Waiting between steps
• Money Wastage:
• • Buying wrong materials
• • Over-ordering (expiry)
• • Under-ordering (rush prices)
• • Paying retail instead of wholesale
• Every 5% Wastage Reduced = 5% More Profit

Identifying Waste

• Track Everything for 1 Week:
• • Materials used vs products made
• • Time spent on each step
• • Failed products and why
• • Material left over/thrown away
• Calculate Waste Rate:
• (Materials Used – Materials in Products) ÷ Materials Used × 100
• Example:
• • Used 10kg chemicals
• • Made products containing 9kg
• • Waste: 1kg = 10% wastage
• Common Waste Points:
• • Measuring and pouring
• • Mixing and processing
• • Filling containers
• • Labeling mistakes

Reducing Material Waste

• Precision Measuring:
• • Use digital scale (must have)
• • Measure twice, pour once
• • Use containers with pour spouts
• Spillage Prevention:
• • Work over collection trays
• • Use funnels for filling
• • Slow and steady process
• Reusing Waste:
• • Collect clean spillages
• • Use leftover batches in next batch
• • Repurpose defective products
• Storage:
• • Proper containers for materials
• • First In, First Out (use oldest first)
• • Check expiry regularly

Time Efficiency

• Workspace Organization:
• • Everything in fixed place
• • Tools within arm's reach
• • Clear workflow paths
• Batch Production:
• • Make multiple units at once
• • Do same step for all before moving to next
• • More efficient than one-by-one
• Preparation:
• • Measure all materials before starting
• • Prepare all containers and labels
• • Have everything ready
• Time Tracking:
• • Note time per batch
• • Find and fix slow points
• • Set time targets

Bulk Buying Strategies

• Why Bulk Saves Money:
• • Lower per-unit cost
• • Fewer trips to market
• • No rush ordering
• When to Buy Bulk:
• • After testing product is successful
• • When you have storage space
• • For items that don't expire quickly
• Building Supplier Relationships:
• • Regular orders = better prices
• • Negotiate bulk discounts
• • Ask for credit terms
• Buying Strategy:
• • Start small (test)
• • Increase quantity as sales grow
• • Keep 2-4 weeks inventory
• Savings Example:
• • Retail: Rs. 1000/kg
• • 10kg bulk: Rs. 800/kg
• • Savings: Rs. 200/kg = 20% better margin