AND Business Consulting Blog Post - Waste Management

Managing Waste in the Food Processing Industry

The food processing industry in India was valued at $322 bn in 2016 and is expected to grow to $543 Bn by 2020, according to Invest India, an Investment Promotion and Facilitation Agency.

Although there is tremendous opportunity in this space, one of the key concerns of the promoters is waste management. The waste in the processing industry can range between 10-30%. This waste hides in a task that has minimum value-add but maximum time-spent. Companies can identify waste by root-cause analysis through observing the processes, spending time with the employees on-the floor and interpreting data.

The cause-and-effect diagram given below gives an idea about the sources of wastes:

AND Business Consulting Blog Post - Waste Management

Once these sources are identified the next step is to analyse and reduce/eliminate waste from the system:

Over-Production

  • Collect data about items that are sold daily for a period of 6 months both by value and quantity
  • Clean the data of outliers
  • Analyse the data and identify the most sold and non-sold item
  • Calculate the frequency of unsold items
  • Correlate the observation with facts and reasoning
  • Eliminate the items not in demand

Undesired output

  • Observe the process and prepare a process map clearly showing each step and resources involved
  • Perform time and motion study with a suitable number of readings to account for all variations
  • Suggest changes with respect to
  • Resource allocation
  • Training and development
  • Use of pictorial aids
  • Standard Operating Procedures

Bottlenecks

  • Carry out bottleneck analysis using the time & motion study
  • Identify bottlenecks attributable to equipment and resources
  • Ascertain investments in equipment or resources that need to be made to smooth bottlenecks

Labour Issues

  • Identify under-staffed or over-staffed sections and sections with quality issues
  • Introduce automation (if possible) for specific tasks after carrying out a cost-benefit analysis
  • Introduce awards systems and KPIs linked to incentives

All put together, it can be said, “Time saved is time created” and by waste management we just do that – SAVE TIME

Follow the article to LinkedIn here

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top