Simple and inexpensive ways
Inventory control and
Efficient purchasing to reduce waste and Cut COS& practices can reduce both purchasing improvements the toxicity of waste and are simple and cost-effecthe amount of a product or package that is destive pollution prevention measures that can be tined to become waste. Clearly, such practices can applied-by virtually any company, of any size, in minimize the waste that results from overpurchasany type of manufacturing or service business. ing materials which are then allowed to expire on
Implementing these techniques costs little and can the shelf. In addition, when creating purchasing be accomplished easily using in-house staff. In standards, a company can go further by specifying addition, taking steps to control inventory and the purchase of less toxic or more easily reusable purchasingalso often improves production perforproducts. Moreover, as part of its purchasing promance.
This article discusses several easily implegram, the firm can negotiate with suppliers to remented techniques. The discussion first reviews duce the amount of packaging used in connection ideas for improving purchasing practices. It then with the goods they provide. explores techniques for controlling inventory, inEducate and involve employees cluding just-in-time UIT) manufacturing, which
The first significant step to improving purchashas been shown to reduce waste while also improving practices is to educate purchasing staff about ing quality and performance. the high cost of disposing of excess or expired raw materials. Purchasing employees should also be
Improving Purchasing Practices represented on any internal teams that address
Purchasing decisions largely control the type and amount of raw materials that enter a product quality or environmental issues. The more company's manufacturing stream. Thus, efficient that purchasing staff know about production, enand waste-sensitive purchasing practices are critical to controlling inventory and ensuring that too many materials do not end up as waste.
Cindy McComas
CCC 1079-0276/95/050227-0B
0 1995 John Wiley & Sons, Inc.
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vironmental, and maintenance procedures, the better equipped they will be to work with vendors and others to make good purchasing decisions.
Establish purchasing review criteria
Crucial to making good purchasing decisions is establishing review criteria for all material pur-
chased, including minimum standards for purchasing approval. Purchasing personnel should consider a number of elements with regard to products being acquired, including: environmental hazards, the potential for creating liability, worker exposure concerns, storage requirements, and handling and use requirements.
Sources of information on product characteristics may include material safety data sheets (MSDS), data provided by chemical suppliers, and chemical reference books.
Avoid ordering more product than is needed
It is important to purchase oniy the amount of raw materials needed for a production run or a set period of time. Excess inventory often must be disposed of because it expires before it can be used, or because thereis no place to store it.
An example of the kind of problems that can be caused by overpurchasing arose in one of
Purchase only the
3M’s plants. The plant was havamount of raw ing difficulty meeting a chloride materials needed for a limitation contained in its wasteproduction run or a set water permit. Sources of the chloperiod of time. ride were investigated, but nothing was found to explain why the permit limit was being exceeded. After discussing the problem with operating personnel at the plant, the company discovered that the problem was related to purchasing quantity. Apparently, when-
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ever the storage tank for the hydrochloric acid used in regenerating the water treatment deionizers began to run low,
lowest possible cost. It is a term that almost synonymous with terms such as 'just-in-time' (JIT) and 'lean operations principles'. The central idea is that if terms flow smoothly, uninterrupted by delay in inventories, not only is throughput time reduce, but the negative effects of in-process inventory are avoided. (Slack, Johnston, Betts & Chambers, 2009)" Womack and Jones (1996) states that Lean Thinking is within the five core principles behind the Toyota Production System, and come to be the most…
customer and it is respect for those who do the work, who are “on-the-spot” and are, therefore, the “world’s greatest experts” in their work. Lean is the elimination of waste in all its forms. Lean is the ability to distinguish between work that actually adds value to your customers and work that does not. By eliminating waste, you free resources to devote to value-adding activity that serves your customers. Lean is a work environment that assures the quality and safety of all work for both customers…
created as a part of a business simulation to gauge business and planning decisions. Profits were made during the second, third and fourth quarters, although the profits could have been greater through more effective sales strategies and careful inventory planning. Bayside Microsystems could have possibly benefited from adopting just-in-time and lean manufacturing techniques. As part of a business simulation, a fictitious organization called Bayside Microsystems was created to demonstrate and…
ACC 557 Week 4 DQ2 "Inventories" Please respond to the following: Imagine you are accountable for a franchise fast-food restaurant. Evaluate the best method of inventory costing and make a recommendation to the company’s leaders about why it is best suited for your franchise fast-food restaurant to reduce the possibility of employee theft of product or other shrinkage concerns. Inventory control requires constant attention. Propose a set of guidelines that reflect the necessary monitoring controls…
Eliminating Waste In Supply Chain Processes Tue, 03/24/2009 - 7:30am Stacy Lee Bersbach, Marketing Manager, Direct EDI, Inc. Get today's manufacturing headlines and news - Sign up now! In this era of economic difficulty it is important to make every penny and minute count, as time is money. Waste within a company’s supply chain -- either internal or external -- through inefficient processes, ordering errors and mistakes, lack of responsiveness and breakdowns in communications are an enormous…
chain management is about developing a process to respond to the different requirements of each customer (Burgess, 1998). It has to be separated from the lean supply chains or the lean manufacturing concept which focusses on reducing fat such as inventory cost wherever possible (Harrison and Van Hoek, 2006). According to Paley, 2005, having agile logistics helps with enriching the customer, enhancing competitiveness, organizing to master change and uncertainty and to leverage the impact of people…
being considered within their supply chain structure, which are, the establishing of a solidified warehousing structure, possessing combined shipments to conserve on costs, the incorporation of information technology (IT) to keep up the companies’ inventory using software like enterprise resource planning (ERP), and…
Just-in-time (JIT) – Continuous and forced problem solving via a focus on throughput and reduced inventory. 2. Toyota Production System (TPS) – Focus on continuous improvement, respect for people, and standard work practices. 3. Lean operations – Eliminates waste through a focus on exactly what the customer wants. 4. Seven wastes – Overproduction, Queues, Transportation, Inventory, Motion, Overprocessing, Defective product. 5. 5Ss – A lean production checklist: Sort, Simplify…
Environmental Pollution and Waste: Air, Water, and Land Media Environmental Sustainability Educational Resources prepared by Gregory A. Keoleian Associate Research Scientist, School of Natural Resources and Environment Co-Director, Center for Sustainable Systems University of Michigan 1 Contents • • • • • • • • Air Pollution Impacts [slide 4] Sources of Air Toxics [slide 5-6] Criteria Air Pollutants [slide 7-9] Trends in National Emissions of Criteria Pollutants…
Management Beyond Toyota: How to Root Out Waste and Pursue Perfection The primary focus of this article written by Womack and Jones is to introduce the concept of “lean thinking.” The methodology comprises of 5 steps aimed at enhancing a company’s operational strategy to rid of waste, which the Japanese termed as “mudu.” These waste are brought on by operational inefficiencies, which are characterized by long processing times, long throughput times and high inventory cost. Womack and Jones went on to explain…