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How to reduce waste as an organisation
Change is driven by true collaboration between everyone from the boardroom to the factory floor including purchasing, finance, brand, internal communications and HR. From here, there are five key steps.
Deep dive Spot the opportunities to reduce waste at every possible moment, even in places where it’s traditionally been seen as unavoidable. Expertise – People across silos will have ideas on what is and isn’t working, and why: what is being overlooked as it happens so often? Are specifications being set too high meaning saleable products are wasted? Evidence – It’s essential to have a granular, quantified understanding of the root cause of all waste: where, why and when is it happening? This is complex, requiring the knitting together of existing data with new data feeds, but this is now possible with the latest advancements in IoT and AI.
Think wide Challenge current systematic issues and processes about what is and isn’t possible.
Prioritise Create clear next steps from this complex set of variables, based on a combination of ease and value. The reality is that most of the easy opportunities will already have been solved. By definition, there is a highest value opportunity remaining. Start there and be relentless in pursuit of improving it. Solve for the next highest priority, and so on.
Analyse Make the case for change based on data and facts, not emotion. Run a small test. Work out the financial implications so you can make a financially compelling case for change. Project the ongoing financial impact and present to stakeholders to gain alignment.
Operationalise Momentum is created by enabled, empowered teams with problem solving capability, and access to both root cause analysis and real-time data that provides visibility of issues. To make change a reality technically, engage the hearts and minds of employees. Put in place technology to enable
Based on your initial theories, carry out factory walks. Take a step back and ask unconstrained questions: 1. If we were designing a new factory, how would it run? 2. For a new process, what would the steps be? 3. Where are we today, what are the gaps and how do we reduce them? With the mindset that all waste can be reduced, constraints aren’t blockers but challenges to overcome.
Only by having a complete intolerance to waste and measuring loss to ‘perfect’ does it become clear what waste can be innovatively reduced. real-time decision making. Regularly deep dive with new people and partners to keep spotting opportunities. 01 02 03 04 05
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