How reducing waste benefits a business
| How reducing these wastes (TIM WOOD) will benefit businesses (Wilson et al., 2012) | |
|---|---|
| Transportation | Costs time and money to transport anything—Inventory, spare parts, documents, samples. This means that the less you transport, the better |
| Inventory | While you have it and it is not being used or worked on, it has to be maintained, insured, moved, stored and paid for |
| Motion | If machines and workers should move as little as possible–it will be faster and less wear and tear |
| Waiting | If people are waiting (i.e., not adding value), they are being paid wages that are wasted |
| Over production | Overproduction ties up capacity, material, time, and other resources. This creates more excess inventory, transport and movement and can also cause defects |
| Over processing | If 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 |
| How reducing these wastes (TIM WOOD) will benefit businesses ( | |
|---|---|
| Transportation | Costs time and money to transport anything—Inventory, spare parts, documents, samples. This means that the less you transport, the better |
| Inventory | While you have it and it is not being used or worked on, it has to be maintained, insured, moved, stored and paid for |
| Motion | If machines and workers should move as little as possible–it will be faster and less wear and tear |
| Waiting | If people are waiting (i.e., not adding value), they are being paid wages that are wasted |
| Over production | Overproduction ties up capacity, material, time, and other resources. This creates more excess inventory, transport and movement and can also cause defects |
| Over processing | If a customer is unwilling to pay for it—over-designed or over-engineered features—it can be considered a waste |
| Defects | 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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