Page 46 - Facility Management Module

FACILITES DESIGN FOR VARIOUS FACILITIES FUNCTION

To understand waste, it is important to recognize it first. Waste can be defined
as any resource that adds cost but does not add value to the product. The following
are the most common sources of waste in a manufacturing facility:

1. Equipment
Equipment can be underutilized for many reasons. Some reasons are poor
scheduling methods, inadequate maintenance programs, absence of feedback mech-
anisms to report maintenance problems, inadequate spare parts inventory, operators

not trained in the use of equipment and in basic preventive maintenance, inefficient
product design, long setup times and inefficient setup procedures, and large lot sizes.

2. Inventories

Inventories for raw material, components, parts, work-in-progress, and finished
products are usually wasted for the following reasons: large purchasing and production
lot sizes, poor facility layout, inefficient material handling systems, inefficient packaging
systems, inadequate training for the workers, poor organization, too many suppliers,
centralized warehouses, inefficient product design, lack of standardization, awkward

storage and retrieval systems, and poor inventory control systems.

3. Space
Space is another key resource where waste can be identified by excess inven-

tory, inappropriate facility layout, inadequate building design, unnecessary material
handling, inefficient storage systems, and inefficient product design.

4. Time
Time can be wasted due to excessive waiting or delays due to inefficient

scheduling, machine downtimes, long repair times, poor-quality products, unreliable
suppliers, poor facility layout, and inefficient material handling systems, deficient
inventory control systems, large lot sizes, and long setup times.

5. Labor
Labor is wasted when the employee is assigned to produce unnecessary prod-
ucts, to move and store unnecessary inventory, to rework bad products, to wait during
machine repairs, and to receive unnecessary training. Labor is also wasted when the

employee makes mistakes due to lack of training, individual responsibility, or mistake-
proofing mechanisms.

BPLK 11 SUBJECT CODE