Table 2

How reducing waste benefits a business

How reducing these wastes (TIM WOOD) will benefit businesses (Wilson et al., 2012)
TransportationCosts time and money to transport anything—Inventory, spare parts, documents, samples. This means that the less you transport, the better
InventoryWhile you have it and it is not being used or worked on, it has to be maintained, insured, moved, stored and paid for
MotionIf machines and workers should move as little as possible–it will be faster and less wear and tear
WaitingIf people are waiting (i.e., not adding value), they are being paid wages that are wasted
Over productionOverproduction ties up capacity, material, time, and other resources. This creates more excess inventory, transport and movement and can also cause defects
Over processingIf a customer is unwilling to pay for it—over-designed or over-engineered features—it can be considered a waste
Defects
and rework
Any product or service that does not satisfy requirements and must be reconsidered is a waste. It includes cost capacity, material, and time. For example, reworking costs require more capacity and time

Source(s): Wilson et al. (2012) 

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