Identify 7 types of waste in business production

Hoàng Anh |

Waste in production is one of the major problems that manufacturing enterprises are facing, causing loss of time, materials and costs. It can be grouped into 7 types of waste in production, negatively affecting the development and growth of enterprises.

7 types of waste in manufacturing

The first is inventory waste: Inventory can be raw materials or finished products that have not been shipped. This is a source of capital that has not yet generated revenue. Therefore, if there are too many raw materials or products in inventory that exceed the necessary level, it will create many other costs for the business, such as: storage costs, warehouse costs, transportation costs, etc.

Second is transportation waste: The manufactured products will be transported from one workshop to another. However, during the transportation process, it is difficult to avoid damage to the transport vehicle causing delays. In this process, the customer does not pay, but only the business suffers the loss.

Third is the waste of operations: Quite similar to the waste in transportation, operations here are the redundant actions of production staff. For example: not being familiar with the work causing slow progress, wasting time looking for tools, etc.

The fourth is the waste of waiting: Waiting is the time when people and machines are down due to bottlenecks or breakdowns in the factory. This type of waste increases the cost per product because of the cost of employees and depreciation of equipment that must be maintained even if a breakdown occurs.

The fifth is the waste of overproduction: Overproduction occurs when the quantity to be produced is more than the customer's demand. This increases other types of costs such as: storage costs, goods preservation costs, etc.

Sixth is the waste of over-processing: At first glance, it sounds quite similar to the waste in production number 5 above, but over-processing is completely different. Here, it means that the product is manufactured much more complicated than the customer's requirements, such as: incorrect design, larger or smaller size, adding some unnecessary details, etc.

a

Inside the factory of Rang Dong Light Source and Vacuum Flask Joint Stock Company. Photo: Ngoc Xen

Seventh is waste of errors/defects: Errors are products that are technically defective or do not meet the aesthetic requirements of the manufacturer; Defects can be understood as errors in delivery, unusual changes in production schedules, providing incorrect product information, etc.

The need to eliminate 7 wastes in business

Eliminating 7 wastes helps businesses optimally meet service or product quality requirements. Thereby increasing satisfaction with the business; Limiting waste during the moving and transporting process helps the unit arrange and organize the working space reasonably. At the same time, it helps the production, delivery and service provision processes to always be on time;

Reducing waste due to defective goods helps save costs in operations and production. Thereby helping the unit reduce costs and ensure prices are always competitive with other competitors; Increase investment efficiency for production and business activities, helping to increase surplus value;

Help business owners know clearly the issues that need to be improved to ensure that goals are achieved on time, on schedule, and in the right quantity. Thereby promoting the business to move forward in the production process.

To survive and develop in the long term, it is necessary to find a solution to cut costs to the maximum. Because this is the only way to reduce product prices. This means eliminating the 7 types of waste in production that exist above from the business.

Hoàng Anh
TIN LIÊN QUAN

Tạo niềm tin, cung ứng nông sản chất lượng cho xuất khẩu

Phan Anh |

Sự lớn mạnh của hệ thống trung tâm chất lượng, chế biến đã giúp người dân, doanh nghiệp bảo đảm nguồn cung nông sản, mở rộng thị trường xuất khẩu.

Lãi suất cao nhất Agribank, gửi 150 triệu nhận 14,4 triệu đồng

Khương Duy |

Trong nhóm Big 4, Agribank đang là một trong hai ngân hàng có lãi suất cao nhất lên tới 4,8%/năm. Dưới đây là số tiền bạn nhận được nếu gửi tiền ở Agribank.

Lãi suất MBBank: Gửi 500 triệu nhận 57 triệu đồng tiền lãi

Thạch Lam |

Theo khảo sát của PV Báo Lao Động, MBBank áp dụng khung lãi suất tiết kiệm cho khách hàng cá nhân trong khoảng 0,1 - 5,6%/năm.

Tuyển Indonesia thua trận đầu tiên tại vòng loại 3 World Cup 2026

NHÓM PV |

Tối 15.10, đội tuyển Indonesia nhận thất bại 1-2 trên sân tuyển Trung Quốc tại vòng loại thứ 3 World Cup 2026.

Ra mắt Tủ sách điện tử Tổng Bí thư Nguyễn Phú Trọng

Vương Trần |

Tủ sách điện tử Tổng Bí thư Nguyễn Phú Trọng là cơ sở dữ liệu quý, phục vụ nghiên cứu, học tập và vận dụng trong sự nghiệp xây dựng và bảo vệ Tổ quốc.

Phá đường dây cờ bạc nghìn tỉ qua mạng, tạm giam 12 người

Thành Nhân |

Bến Tre - Lực lượng Công an vừa triệt xóa đường dây cờ bạc trên không gian mạng với tổng số tiền giao dịch hơn 1.800 tỉ đồng.

Nổ nồi hấp tinh dầu, 1 bé gái bị thương, 5 căn nhà ảnh hưởng

LÝ LINH |

TPHCM - Ngày 15.10, Công an huyện Bình Chánh đang điều tra vụ nổ nồi hấp tại một cơ sở sản xuất tinh dầu trên địa bàn xã Vĩnh Lộc A khiến một bé gái bị thương.

Nguyên chủ tịch xã ở Thái Bình bị tố lạm quyền để trục lợi

TRUNG DU |

Thái Bình - Nguyên Chủ tịch UBND xã Quỳnh Hải, huyện Quỳnh Phụ bị tố lợi dụng chức vụ quyền hạn để tư lợi, trục lợi cho bản thân, gia đình.

Creating trust, providing quality agricultural products for export

Phan Anh |

The growth of the quality and processing center system has helped people and businesses ensure the supply of agricultural products and expand export markets .

Highest interest rate at Agribank, deposit 150 million and receive 14.4 million VND

Khương Duy |

In the Big 4 group, Agribank is one of the two banks with the highest interest rate of up to 4.8%/year. Below is the amount of money you will receive if you deposit money at Agribank.

MBBank Interest Rate: Deposit 500 million and receive 57 million in interest

Thạch Lam |

According to a survey by Lao Dong Newspaper reporters, MBBank applies a savings interest rate range for individual customers in the range of 0.1 - 5.6%/year.