How Can Removing Waste Help Your Business

What good does that equipment do for your business if it's not being utilized

? What good are those old parts that are obsolete and that you dont use anymore, but are holding on to just in case? They really arent any good and they are just taking up room and space. What could you do with that pace if it were available and wasnt being wasted? Maybe you could set up another workstation and get the job done even faster. Maybe you could install a machine that was actually productive and was used during the manufacturing process. You have to look for opportunities to turn waste into profit.

Wasted space is just as deadly to your company as wasted labor or ruined material. When you are not utilizing your space efficiently and for the greatest good of production, than you are losing money and losing profit. Being efficient is more than just being efficient with your time and materials; it also applies to your space. How your warehouse or production facility is set-up matters just as much as these other areas of production.

Wasting space and having your layout in an inefficient manner costs you money every day. Although this type of waste is just as deadly and just as wasteful as bad material or too much labor, it just isnt as visible. This is the kind of waste that can go unnoticed for a long period of time before anybody even realizes that there is a problem. You might say that there is room for all of that excess material and obsolete parts because that part of the warehouse isnt being used anyway.

All that means is that you have too large of a warehouse and you are wasting money heating and cooling and keeping a warehouse that is too big for your company. You are wasting money in one way or another. If you can better utilize the space or actually put it to use to make you money, then you will be on your way to solving the problem and to becoming more profitable.

Not only is wasted space a waste of money, but having to work around that excess equipment or having to sort through the obsolete material to find what you are looking for is a waste of time and labor. Having a lot of junk laying around makes every process harder and more work than it should be.

by: Craig Calvin

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