Reduction in Waste
 
 

A manufacturing company has experienced a slow decline in profitability. A sitewide audit has shown that waste is the biggest contributor to the decline in productivity. This waste comes from three areas:

  1. Wasteful use of raw materials and damage through poor storage and handling
  2. Excessive losses from machine edging and offcuts during manufacturing
  3. Unusually high returns from customers of product damaged during packing and transporting
The company wants to improve profit by decreasing waste so it sets KPIs for the three areas above. Change the percentage of each type of waste below and see what happens to profit.
Current lost profit from waste comes from: New KPI
targets

You chose ....

 Enter your targets below
Raw product waste = 10% = 2.5% % Raw product waste = %
Production waste = 5% = 2.5% % Production waste = %
Damaged product = 10% = 2.5% % Damaged product = %
Total waste cost $25 Total waste cost $0 per $100

 

  
 
Unit sale price of product = $100
Of that $100 costs are:		 Watch how profit changes
      Raw product = $25 Profit = $35
      Production costs =$40
      Waste = $0