Page 302 - (DK) The Business Book

300

EVERY GAIN THROUGH THE

ELIMINATION OF WASTE IS

GOLD IN THE MINE

JURAN’S PRODUCTION IDEAL

IN CONTEXT
Reducing waste increases efficiency by improving
FOCUS the productivity of capital and labor.
Waste reduction

KEY DATES
1969 The Spittelau incineration
plant in Vienna opens to burn
trash collected from the city. Efficiency gains created from cutting waste cause
The award-winning design average unit costs to fall.
means that the energy created
can be used to provide hot
water to a local hospital.
1931 Walter Shewhart
Lower unit costs can help a company grow because
summarizes his work on
lower costs can be used to either:
process quality control at
Western Electric in his book
Economic Control of Quality
of Manufactured Product.
1994 In The Empty Raincoat,
Or improve profit
Charles Handy predicts the
Fund price cuts, margins, which can
rise of telecommuting, which will hopefully be used to finance
whereby employees work from boost sales. new product
home to reduce office space. development.
1999 Salesforce.com and
Google develop cloud
computing. This foregoes the
need to run expensive servers
on which to store their data. Every gain through the elimination
of waste is gold in the mine.