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PKF Texas – Entrepreneur’s Playbook®:Conduct Waste Audits in Your Business

by | May 22, 2009 | PKF Texas - The Entrepreneur's Playbook®

Note: Running Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the PKF Texas – Entrepreneur’s Playbook® page of the PKF Texas website.

Conducting regular waste reduction audits should be a part of your regular business processes.  As is the case with most improvement initiatives, the first step is to gather your management team and hold a “whiteboard” session. Your management team will have a good feel for where waste is occurring in your business.

The most common areas of waste are:

• Overproduction
• Waiting
• Transport
• Inappropriate Processing
• Inventory
• Motion and process improvement
• Defects

Brainstorm at least three ideas per area about what can be done to eliminate the waste. Rank each idea on a scale of one to five, one being the easiest and five being the hardest to implement. Estimate how much money the company is spending or losing because of each area of waste.

At the end of this process, it will be easy to identify the ideas that will have the highest value with the easiest implementation. This should be the starting point for attacking waste in your business.

Finally, document your work. Complete a one-page-plan for your company with regard to your waste reduction projects. 

By starting with the easiest, most valuable idea first, you will be able to transition into the ongoing waste reduction process for your business.

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