Continually improve processes to reduce inefficiency and waste
What are Lean methods?
The origins of lean methods and using lean tools to maximise the use of resources in your business processes.
The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.
Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.
Lean tools
The main tools used in Lean are:
- 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
- Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
- Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
- Kaizen - the method of making continuous incremental improvements
- KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
- Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
- Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
- Takt time - the time in which one unit of work must be completed in order to meet customer demand
- Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
- Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
- Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
- Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified
Balancing efficiency and environment with Lean
Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.
You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.
HelpAlso on this siteContent category
Source URL
/content/what-are-lean-methods
Links
What is Six Sigma?
How implementing Six Sigma on a project-by-project basis can improve quality and reduce waste in your business.
Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.
The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:
- define the customers, their requirements, the process or the project boundaries
- measure the performance of the current process
- analyse information and identify where improvements can be made
- improve the process to achieve required performance
- control the implementation, monitoring results and introducing training and incentives to maintain process improvements
To successfully implement Six Sigma in your business you will need:
- a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
- support, talent and financial resources from senior management
- championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
- employees trained to Six Sigma black belt or green belt
- financial resources committed to training employees
- regular planning and review meetings to ensure successful and on-target implementation
- monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary
Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.
HelpAlso on this siteContent category
Source URL
/content/what-six-sigma
Links
How to use Lean and Six Sigma together
How Lean methods can be used alongside Six Sigma working methods to improve the efficiency of processes.
Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.
At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).
Lean involves numerous methods of working, rather than different tools.
What is Lean Six Sigma?
Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.
This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.
Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.
HelpAlso on this siteContent category
Source URL
/content/how-use-lean-and-six-sigma-together
Links
How to identify process inefficiency and waste
How to use tried and tested methods to identify and reduce waste and improve the efficiency of your business' processes.
Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.
What is TIM WOODS?
The acronym TIM WOODS has been used as a helpful way of identifying waste:
- Transport - minimise movement of materials so processes are near each other
- Inventory (stock) - aim for 'just-in-time' production
- Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
- Waiting - aim for smooth flow to eliminate waiting periods
- Overproduction - aim to make what the customer orders, just in time
- Overprocessing - use resources of appropriate capacity to achieve required quality
- Defects - aim for zero defects
- Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas
The following are also considered as waste for Lean methods:
- inappropriate systems
- energy and water
- materials
- service and office wastes
- customer time
- losing customers
It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.
The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.
- Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
- Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.
Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:
- replacement of raw materials
- scrap products
- delays while faults are identified and remedied
- labour costs for making replacement components and products
- staff costs in dealing with customer complaints, including possible discounts on further sales
- lost business from customers who go elsewhere, or from potential customers who hear of your quality problems
You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.
HelpAlso on this siteContent category
Source URL
/content/how-identify-process-inefficiency-and-waste
Links
How to implement process efficiency improvements
Identifying ways of improving process efficiency and reducing waste to increase the profitability of your business.
Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.
It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.
It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.
Analysing process waste problems
It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.
To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.
There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.
HelpAlso on this siteContent category
Source URL
/content/how-implement-process-efficiency-improvements
Links
Continually improve processes to reduce inefficiency and waste
How to review and improve your business processes to continue to reduce wastage on an ongoing basis.
Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.
You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.
If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.
Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:
- forming a team
- describing the problem
- containing the problem
- identifying the root cause
- formulating and verifying corrective actions
- correcting the problem and confirming the effects
- preventing the problem from reoccurring
- congratulating the team
It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.
Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.
You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.
HelpAlso on this siteContent category
Source URL
/content/continually-improve-processes-reduce-inefficiency-and-waste
Links
How to implement process efficiency improvements
What are Lean methods?
The origins of lean methods and using lean tools to maximise the use of resources in your business processes.
The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.
Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.
Lean tools
The main tools used in Lean are:
- 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
- Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
- Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
- Kaizen - the method of making continuous incremental improvements
- KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
- Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
- Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
- Takt time - the time in which one unit of work must be completed in order to meet customer demand
- Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
- Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
- Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
- Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified
Balancing efficiency and environment with Lean
Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.
You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.
HelpAlso on this siteContent category
Source URL
/content/what-are-lean-methods
Links
What is Six Sigma?
How implementing Six Sigma on a project-by-project basis can improve quality and reduce waste in your business.
Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.
The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:
- define the customers, their requirements, the process or the project boundaries
- measure the performance of the current process
- analyse information and identify where improvements can be made
- improve the process to achieve required performance
- control the implementation, monitoring results and introducing training and incentives to maintain process improvements
To successfully implement Six Sigma in your business you will need:
- a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
- support, talent and financial resources from senior management
- championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
- employees trained to Six Sigma black belt or green belt
- financial resources committed to training employees
- regular planning and review meetings to ensure successful and on-target implementation
- monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary
Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.
HelpAlso on this siteContent category
Source URL
/content/what-six-sigma
Links
How to use Lean and Six Sigma together
How Lean methods can be used alongside Six Sigma working methods to improve the efficiency of processes.
Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.
At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).
Lean involves numerous methods of working, rather than different tools.
What is Lean Six Sigma?
Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.
This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.
Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.
HelpAlso on this siteContent category
Source URL
/content/how-use-lean-and-six-sigma-together
Links
How to identify process inefficiency and waste
How to use tried and tested methods to identify and reduce waste and improve the efficiency of your business' processes.
Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.
What is TIM WOODS?
The acronym TIM WOODS has been used as a helpful way of identifying waste:
- Transport - minimise movement of materials so processes are near each other
- Inventory (stock) - aim for 'just-in-time' production
- Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
- Waiting - aim for smooth flow to eliminate waiting periods
- Overproduction - aim to make what the customer orders, just in time
- Overprocessing - use resources of appropriate capacity to achieve required quality
- Defects - aim for zero defects
- Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas
The following are also considered as waste for Lean methods:
- inappropriate systems
- energy and water
- materials
- service and office wastes
- customer time
- losing customers
It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.
The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.
- Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
- Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.
Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:
- replacement of raw materials
- scrap products
- delays while faults are identified and remedied
- labour costs for making replacement components and products
- staff costs in dealing with customer complaints, including possible discounts on further sales
- lost business from customers who go elsewhere, or from potential customers who hear of your quality problems
You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.
HelpAlso on this siteContent category
Source URL
/content/how-identify-process-inefficiency-and-waste
Links
How to implement process efficiency improvements
Identifying ways of improving process efficiency and reducing waste to increase the profitability of your business.
Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.
It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.
It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.
Analysing process waste problems
It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.
To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.
There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.
HelpAlso on this siteContent category
Source URL
/content/how-implement-process-efficiency-improvements
Links
Continually improve processes to reduce inefficiency and waste
How to review and improve your business processes to continue to reduce wastage on an ongoing basis.
Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.
You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.
If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.
Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:
- forming a team
- describing the problem
- containing the problem
- identifying the root cause
- formulating and verifying corrective actions
- correcting the problem and confirming the effects
- preventing the problem from reoccurring
- congratulating the team
It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.
Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.
You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.
HelpAlso on this siteContent category
Source URL
/content/continually-improve-processes-reduce-inefficiency-and-waste
Links
How to identify process inefficiency and waste
What are Lean methods?
The origins of lean methods and using lean tools to maximise the use of resources in your business processes.
The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.
Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.
Lean tools
The main tools used in Lean are:
- 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
- Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
- Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
- Kaizen - the method of making continuous incremental improvements
- KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
- Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
- Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
- Takt time - the time in which one unit of work must be completed in order to meet customer demand
- Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
- Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
- Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
- Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified
Balancing efficiency and environment with Lean
Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.
You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.
HelpAlso on this siteContent category
Source URL
/content/what-are-lean-methods
Links
What is Six Sigma?
How implementing Six Sigma on a project-by-project basis can improve quality and reduce waste in your business.
Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.
The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:
- define the customers, their requirements, the process or the project boundaries
- measure the performance of the current process
- analyse information and identify where improvements can be made
- improve the process to achieve required performance
- control the implementation, monitoring results and introducing training and incentives to maintain process improvements
To successfully implement Six Sigma in your business you will need:
- a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
- support, talent and financial resources from senior management
- championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
- employees trained to Six Sigma black belt or green belt
- financial resources committed to training employees
- regular planning and review meetings to ensure successful and on-target implementation
- monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary
Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.
HelpAlso on this siteContent category
Source URL
/content/what-six-sigma
Links
How to use Lean and Six Sigma together
How Lean methods can be used alongside Six Sigma working methods to improve the efficiency of processes.
Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.
At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).
Lean involves numerous methods of working, rather than different tools.
What is Lean Six Sigma?
Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.
This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.
Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.
HelpAlso on this siteContent category
Source URL
/content/how-use-lean-and-six-sigma-together
Links
How to identify process inefficiency and waste
How to use tried and tested methods to identify and reduce waste and improve the efficiency of your business' processes.
Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.
What is TIM WOODS?
The acronym TIM WOODS has been used as a helpful way of identifying waste:
- Transport - minimise movement of materials so processes are near each other
- Inventory (stock) - aim for 'just-in-time' production
- Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
- Waiting - aim for smooth flow to eliminate waiting periods
- Overproduction - aim to make what the customer orders, just in time
- Overprocessing - use resources of appropriate capacity to achieve required quality
- Defects - aim for zero defects
- Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas
The following are also considered as waste for Lean methods:
- inappropriate systems
- energy and water
- materials
- service and office wastes
- customer time
- losing customers
It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.
The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.
- Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
- Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.
Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:
- replacement of raw materials
- scrap products
- delays while faults are identified and remedied
- labour costs for making replacement components and products
- staff costs in dealing with customer complaints, including possible discounts on further sales
- lost business from customers who go elsewhere, or from potential customers who hear of your quality problems
You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.
HelpAlso on this siteContent category
Source URL
/content/how-identify-process-inefficiency-and-waste
Links
How to implement process efficiency improvements
Identifying ways of improving process efficiency and reducing waste to increase the profitability of your business.
Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.
It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.
It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.
Analysing process waste problems
It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.
To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.
There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.
HelpAlso on this siteContent category
Source URL
/content/how-implement-process-efficiency-improvements
Links
Continually improve processes to reduce inefficiency and waste
How to review and improve your business processes to continue to reduce wastage on an ongoing basis.
Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.
You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.
If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.
Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:
- forming a team
- describing the problem
- containing the problem
- identifying the root cause
- formulating and verifying corrective actions
- correcting the problem and confirming the effects
- preventing the problem from reoccurring
- congratulating the team
It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.
Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.
You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.
HelpAlso on this siteContent category
Source URL
/content/continually-improve-processes-reduce-inefficiency-and-waste
Links
How to use Lean and Six Sigma together
What are Lean methods?
The origins of lean methods and using lean tools to maximise the use of resources in your business processes.
The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.
Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.
Lean tools
The main tools used in Lean are:
- 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
- Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
- Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
- Kaizen - the method of making continuous incremental improvements
- KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
- Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
- Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
- Takt time - the time in which one unit of work must be completed in order to meet customer demand
- Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
- Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
- Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
- Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified
Balancing efficiency and environment with Lean
Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.
You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.
HelpAlso on this siteContent category
Source URL
/content/what-are-lean-methods
Links
What is Six Sigma?
How implementing Six Sigma on a project-by-project basis can improve quality and reduce waste in your business.
Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.
The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:
- define the customers, their requirements, the process or the project boundaries
- measure the performance of the current process
- analyse information and identify where improvements can be made
- improve the process to achieve required performance
- control the implementation, monitoring results and introducing training and incentives to maintain process improvements
To successfully implement Six Sigma in your business you will need:
- a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
- support, talent and financial resources from senior management
- championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
- employees trained to Six Sigma black belt or green belt
- financial resources committed to training employees
- regular planning and review meetings to ensure successful and on-target implementation
- monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary
Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.
HelpAlso on this siteContent category
Source URL
/content/what-six-sigma
Links
How to use Lean and Six Sigma together
How Lean methods can be used alongside Six Sigma working methods to improve the efficiency of processes.
Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.
At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).
Lean involves numerous methods of working, rather than different tools.
What is Lean Six Sigma?
Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.
This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.
Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.
HelpAlso on this siteContent category
Source URL
/content/how-use-lean-and-six-sigma-together
Links
How to identify process inefficiency and waste
How to use tried and tested methods to identify and reduce waste and improve the efficiency of your business' processes.
Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.
What is TIM WOODS?
The acronym TIM WOODS has been used as a helpful way of identifying waste:
- Transport - minimise movement of materials so processes are near each other
- Inventory (stock) - aim for 'just-in-time' production
- Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
- Waiting - aim for smooth flow to eliminate waiting periods
- Overproduction - aim to make what the customer orders, just in time
- Overprocessing - use resources of appropriate capacity to achieve required quality
- Defects - aim for zero defects
- Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas
The following are also considered as waste for Lean methods:
- inappropriate systems
- energy and water
- materials
- service and office wastes
- customer time
- losing customers
It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.
The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.
- Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
- Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.
Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:
- replacement of raw materials
- scrap products
- delays while faults are identified and remedied
- labour costs for making replacement components and products
- staff costs in dealing with customer complaints, including possible discounts on further sales
- lost business from customers who go elsewhere, or from potential customers who hear of your quality problems
You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.
HelpAlso on this siteContent category
Source URL
/content/how-identify-process-inefficiency-and-waste
Links
How to implement process efficiency improvements
Identifying ways of improving process efficiency and reducing waste to increase the profitability of your business.
Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.
It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.
It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.
Analysing process waste problems
It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.
To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.
There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.
HelpAlso on this siteContent category
Source URL
/content/how-implement-process-efficiency-improvements
Links
Continually improve processes to reduce inefficiency and waste
How to review and improve your business processes to continue to reduce wastage on an ongoing basis.
Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.
You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.
If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.
Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:
- forming a team
- describing the problem
- containing the problem
- identifying the root cause
- formulating and verifying corrective actions
- correcting the problem and confirming the effects
- preventing the problem from reoccurring
- congratulating the team
It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.
Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.
You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.
HelpAlso on this siteContent category
Source URL
/content/continually-improve-processes-reduce-inefficiency-and-waste
Links
What is Six Sigma?
What are Lean methods?
The origins of lean methods and using lean tools to maximise the use of resources in your business processes.
The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.
Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.
Lean tools
The main tools used in Lean are:
- 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
- Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
- Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
- Kaizen - the method of making continuous incremental improvements
- KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
- Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
- Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
- Takt time - the time in which one unit of work must be completed in order to meet customer demand
- Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
- Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
- Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
- Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified
Balancing efficiency and environment with Lean
Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.
You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.
HelpAlso on this siteContent category
Source URL
/content/what-are-lean-methods
Links
What is Six Sigma?
How implementing Six Sigma on a project-by-project basis can improve quality and reduce waste in your business.
Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.
The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:
- define the customers, their requirements, the process or the project boundaries
- measure the performance of the current process
- analyse information and identify where improvements can be made
- improve the process to achieve required performance
- control the implementation, monitoring results and introducing training and incentives to maintain process improvements
To successfully implement Six Sigma in your business you will need:
- a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
- support, talent and financial resources from senior management
- championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
- employees trained to Six Sigma black belt or green belt
- financial resources committed to training employees
- regular planning and review meetings to ensure successful and on-target implementation
- monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary
Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.
HelpAlso on this siteContent category
Source URL
/content/what-six-sigma
Links
How to use Lean and Six Sigma together
How Lean methods can be used alongside Six Sigma working methods to improve the efficiency of processes.
Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.
At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).
Lean involves numerous methods of working, rather than different tools.
What is Lean Six Sigma?
Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.
This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.
Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.
HelpAlso on this siteContent category
Source URL
/content/how-use-lean-and-six-sigma-together
Links
How to identify process inefficiency and waste
How to use tried and tested methods to identify and reduce waste and improve the efficiency of your business' processes.
Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.
What is TIM WOODS?
The acronym TIM WOODS has been used as a helpful way of identifying waste:
- Transport - minimise movement of materials so processes are near each other
- Inventory (stock) - aim for 'just-in-time' production
- Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
- Waiting - aim for smooth flow to eliminate waiting periods
- Overproduction - aim to make what the customer orders, just in time
- Overprocessing - use resources of appropriate capacity to achieve required quality
- Defects - aim for zero defects
- Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas
The following are also considered as waste for Lean methods:
- inappropriate systems
- energy and water
- materials
- service and office wastes
- customer time
- losing customers
It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.
The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.
- Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
- Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.
Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:
- replacement of raw materials
- scrap products
- delays while faults are identified and remedied
- labour costs for making replacement components and products
- staff costs in dealing with customer complaints, including possible discounts on further sales
- lost business from customers who go elsewhere, or from potential customers who hear of your quality problems
You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.
HelpAlso on this siteContent category
Source URL
/content/how-identify-process-inefficiency-and-waste
Links
How to implement process efficiency improvements
Identifying ways of improving process efficiency and reducing waste to increase the profitability of your business.
Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.
It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.
It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.
Analysing process waste problems
It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.
To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.
There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.
HelpAlso on this siteContent category
Source URL
/content/how-implement-process-efficiency-improvements
Links
Continually improve processes to reduce inefficiency and waste
How to review and improve your business processes to continue to reduce wastage on an ongoing basis.
Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.
You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.
If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.
Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:
- forming a team
- describing the problem
- containing the problem
- identifying the root cause
- formulating and verifying corrective actions
- correcting the problem and confirming the effects
- preventing the problem from reoccurring
- congratulating the team
It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.
Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.
You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.
HelpAlso on this siteContent category
Source URL
/content/continually-improve-processes-reduce-inefficiency-and-waste
Links
What are Lean methods?
What are Lean methods?
The origins of lean methods and using lean tools to maximise the use of resources in your business processes.
The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.
Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.
Lean tools
The main tools used in Lean are:
- 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
- Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
- Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
- Kaizen - the method of making continuous incremental improvements
- KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
- Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
- Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
- Takt time - the time in which one unit of work must be completed in order to meet customer demand
- Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
- Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
- Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
- Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified
Balancing efficiency and environment with Lean
Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.
You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.
HelpAlso on this siteContent category
Source URL
/content/what-are-lean-methods
Links
What is Six Sigma?
How implementing Six Sigma on a project-by-project basis can improve quality and reduce waste in your business.
Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.
The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:
- define the customers, their requirements, the process or the project boundaries
- measure the performance of the current process
- analyse information and identify where improvements can be made
- improve the process to achieve required performance
- control the implementation, monitoring results and introducing training and incentives to maintain process improvements
To successfully implement Six Sigma in your business you will need:
- a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
- support, talent and financial resources from senior management
- championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
- employees trained to Six Sigma black belt or green belt
- financial resources committed to training employees
- regular planning and review meetings to ensure successful and on-target implementation
- monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary
Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.
HelpAlso on this siteContent category
Source URL
/content/what-six-sigma
Links
How to use Lean and Six Sigma together
How Lean methods can be used alongside Six Sigma working methods to improve the efficiency of processes.
Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.
At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).
Lean involves numerous methods of working, rather than different tools.
What is Lean Six Sigma?
Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.
This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.
Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.
HelpAlso on this siteContent category
Source URL
/content/how-use-lean-and-six-sigma-together
Links
How to identify process inefficiency and waste
How to use tried and tested methods to identify and reduce waste and improve the efficiency of your business' processes.
Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.
What is TIM WOODS?
The acronym TIM WOODS has been used as a helpful way of identifying waste:
- Transport - minimise movement of materials so processes are near each other
- Inventory (stock) - aim for 'just-in-time' production
- Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
- Waiting - aim for smooth flow to eliminate waiting periods
- Overproduction - aim to make what the customer orders, just in time
- Overprocessing - use resources of appropriate capacity to achieve required quality
- Defects - aim for zero defects
- Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas
The following are also considered as waste for Lean methods:
- inappropriate systems
- energy and water
- materials
- service and office wastes
- customer time
- losing customers
It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.
The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.
- Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
- Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.
Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:
- replacement of raw materials
- scrap products
- delays while faults are identified and remedied
- labour costs for making replacement components and products
- staff costs in dealing with customer complaints, including possible discounts on further sales
- lost business from customers who go elsewhere, or from potential customers who hear of your quality problems
You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.
HelpAlso on this siteContent category
Source URL
/content/how-identify-process-inefficiency-and-waste
Links
How to implement process efficiency improvements
Identifying ways of improving process efficiency and reducing waste to increase the profitability of your business.
Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.
It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.
It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.
Analysing process waste problems
It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.
To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.
There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.
HelpAlso on this siteContent category
Source URL
/content/how-implement-process-efficiency-improvements
Links
Continually improve processes to reduce inefficiency and waste
How to review and improve your business processes to continue to reduce wastage on an ongoing basis.
Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.
You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.
If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.
Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:
- forming a team
- describing the problem
- containing the problem
- identifying the root cause
- formulating and verifying corrective actions
- correcting the problem and confirming the effects
- preventing the problem from reoccurring
- congratulating the team
It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.
Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.
You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.
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Create an energy efficient work culture
How to monitor your energy use
Measure how your business consumes fossil fuels and electricity in order to identify savings and cut your energy bills.
You can't manage what you don't measure. So, to find out how much energy your business wastes and how much money you can save, you need to monitor your energy use.
Monitor your meters
Take regular meter readings and compare consumption to previous months. Remember:
- When comparing fuel used for heating your premises, consider how cold it's been. The colder the period, the more energy you will use.
- If you're comparing energy used in production, consider your output. The best way to do this is to record energy used per item produced. Or, in offices, by floor spaces or staff numbers.
Plotting these against each other will help you spot where you can make changes. Simple changes can often result in major savings. For example, you could identify equipment that's not used at weekends and make sure it's switched off on Friday evenings.
Advanced meters
There are many types of advanced metering systems available. These can give you a detailed picture of energy use within your business - far beyond that offered by the basic meter provided by your energy supplier. These include:
- half hourly meters record how much energy is used every 30 minutes - useful for analysing energy-use patterns
- sub meters allow you to monitor specific areas or processes
- a plug-in meter can be 'sandwiched' between a power socket and the plug of the appliance to be monitored - these are cheap and handy for measuring small loads
- clamp on meters offer a non-invasive way of monitoring hot water flow - these are often used to identify large consumers of energy in large factories
Smart meters
Smart electricity and gas meters can help businesses and consumers cut their bills. Smart meters give live readings and comparisons which show you instantly how much energy you're using. This will mean you can tailor your consumption to take advantage of cheaper rates for off-peak usage. Readings are also automatically sent to the supplier - so bills will always be accurate.
With some suppliers already advertising these types of meter, there are opportunities to take advantage of this technology now.
Find more information on the types of smart meters available and the benefits they offer.
Perform a walk-round survey
A good way to assess your business' energy use is to carry out a walk-round survey. This will help you spot equipment and processes that are inefficient.
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Create an energy efficient work culture
Advice on how to win the support of your employees when implementing energy-saving practices in your business.
Saving energy will require your employees to take on some of the responsibility. So it's important to consult them and get their buy-in before changing your practices.
Energy-saving measures that are difficult, inconvenient or impractical to implement are likely to be ignored or withdrawn. This will undermine any future attempts to reduce energy use.
You might want to consider appointing an energy champion who is in charge of finding new ways of cutting the amount of power you use. Their responsibilities could include:
- reporting any energy waste they notice - for example, equipment left on unnecessarily
- ensuring equipment and machinery are well-maintained and working efficiently
- contributing and gathering ideas for improving the way things are done
- testing and implementing processes that are found to be more efficient
- communicating good practice and improvements
Remember to bear in mind any health and safety issues before you implement any changes. For example, could reducing lighting in an area of your premises make it difficult for your employees to move around safely?
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Energy efficiency tips for different types of business
Tips for specific energy-saving interventions you can make in different industry sectors and where to find out more.
You can take specific additional measures to improve energy efficiency, depending on your business type.
Manufacturing businesses might look at:
- fitting more energy-efficient motors and ensuring those not in use are switched off
- using variable-speed drives (inverters) on motors - you may be able to claim an enhanced capital allowance
- ensuring compressed air systems are well-maintained and run at minimum pressure
- disabling unused air pipes and setting systems to switch off automatically
- changing work schedules to maximise the full capacity of equipment like heating tanks and ovens, instead of running half loads
Warehousing businesses could investigate:
- improving insulation
- lighting systems and controls
- replacing hot air heating systems with radiant heaters, which heat people and objects directly
- installing rubber seals around 'docking bays' to reduce the need to open large access doors for delivery and loading
Office-based businesses should ensure that:
- monitors are switched off during breaks and energy-saving modes are enabled
- screensavers are disabled - they're a waste of energy
- lights are only switched on when needed - consider automatic lighting controls
- heating and air conditioning systems are well controlled and never allowed to 'compete'
Transport and distribution businesses should make sure that they:
- are using fuel-efficient vehicles and 'greener' types of fuel, such as biodiesel
- plan routes, looking for return loads
- encourage drivers to use more efficient driving techniques
- are using their warehousing effectively
- have considered rail freight for larger consignments
Retail businesses can:
- install automatic doors to prevent heat escaping
- improve and update display lighting
- check heating and cooling set points
Hotels and other hospitality businesses can:
- check that energy-using facilities, for example kitchens, laundry or leisure facilities, are managed in a way that minimises energy use
- consider using movement-triggered light switches and taps in guest and staff facilities
- ensure heating and cooling systems are adequately controlled and operating at the right temperatures
- maintain freezer efficiency by defrosting them regularly, keeping doors closed as much as possible and filling unused spaces with bubble wrap
For certain industries that use energy intensively, the government has negotiated climate change agreements with trade bodies. This can mean up to an 80 per cent discount from the climate change levy in return for meeting legally binding energy-efficiency targets.
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Energy efficiency: sources of advice and financial help
Where your business can go to for help, advice and support in order to improve your energy efficiency.
There are several organisations that you can approach for advice or financial assistance with energy efficiency.
Invest Northern Ireland offers a range of financial and advisory support services to local businesses looking to effectively manage energy and waste issues and improve efficiency and profitability - find out more about Invest NI energy and waste services.
The Carbon Trust provides advice to businesses and the public sector on saving money through energy efficiency. It provides site energy surveys, support and information on energy efficiency.
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Checklist: using energy efficiently
Efficiency steps you should take to help your business to save as much money and energy as possible.
Using energy more efficiently will save your business money by cutting your energy bills. To help identify potential savings you should:
- Conduct a walk-round survey of your business to spot immediate money and energy-saving opportunities.
- Assign responsibility for energy efficiency to someone within the business and give them the necessary time and resources to do the job thoroughly.
- Take regular meter readings to get an accurate picture of how much energy your business is using and where the biggest savings could be made - see how to monitor your energy use.
- Contact organisations like the Carbon Trust. They offer telephone consultancy and on-site visits to businesses that use a lot of energy - see energy efficiency: sources of advice and financial help.
- Check that you are on the correct energy tariff. For example, if you have a 'day/night' tariff but do not use electricity overnight, it's likely that your bills are higher than they need to be.
- Talk to alternative suppliers of energy about the tariffs they could offer you and whether these beat the terms offered by your current supplier.
- Consider inviting energy companies to tender for your business.
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What are the alternatives to burning waste?
Controls on burning waste in the open
How burning waste in the open, including bonfires, is controlled and the restrictions on dark smoke.
Burning waste in the open can cause air, land and water pollution and so needs to be controlled to limit this risk. You should find alternative methods of waste management wherever possible.
Burning waste may release harmful gases, grit and dust. Residues of harmful chemicals such as lead paints, tars and oils that remain in the ashes can be washed into the ground by rain. This may lead to contamination of the soil, groundwater and surface waters.
Waste management licences for burning waste
If your business burns waste in the open, such as on a bonfire, you may need a waste management licence or a registered waste exemption. You must have the correct permissions before you burn waste and you must make sure that burning the waste does not create pollution or cause a nuisance.
In some cases, burning waste is forbidden. For example, you may not be allowed to burn waste in an area with poor air quality.
Burning waste plant tissue and untreated wood
You may qualify for a waste exemption from waste management licensing to burn certain waste plant tissue and untreated wood if you burn no more than 10 tonnes in a 24-hour period at the place where it was produced. You must register this paragraph 30 exemption with the Northern Ireland Environment Agency (NIEA). If you have an exemption, you must comply with the exemption conditions.
You must ensure that your activity does not:
- endanger human health or risk harm to water, air or soil
- risk harm to plants or animals
- cause a noise or odour nuisance
- adversely affect the countryside or places of special interest
Read about the paragraph 30 exemption for burning waste on land in the open.
Burning construction waste
You must not burn waste on a construction site unless you have a pollution prevention and control permit, waste management licence or a registered waste exemption that covers the activity.
Burning farm waste
You must not burn non-natural farm waste, such as plastic and tyres, in the open. You are no longer allowed to use a drum incinerator to burn agricultural or veterinary containers that are contaminated with pesticides or other toxic substances.
You can burn some waste, including plant tissue waste and untreated wood, in the open. However, you may need to register a paragraph 30 waste exemption for this activity with NIEA.
Burning straw or stubble in the open is strongly discouraged. If you have no other alternative then you will be allowed to burn straw or stubble only if you have registered an exemption with NIEA and follow Department of Agriculture, Environment and Rural Affairs (DAERA) guidelines.
Normally, you must not burn animal carcasses in the open. You can only burn carcasses if you have permission from DAERA. Permission may be granted in certain circumstances, such as when a disease outbreak occurs.
Dark smoke restrictions
You must not cause or allow emissions of dark smoke from your site.
There are some exemptions from this requirement, but only if your activities won't cause emissions that could damage health or cause a nuisance. Materials that are likely to emit dark smoke when burned include:
- tyres and other rubber-based products
- plastics such as polystyrene
- cable and wires with plastic insulation covering
- oils and paints
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Requirements of the Waste Incineration Directive
What the Waste Incineration Directive is, what your business needs to do to comply with it, and exclusions.
The Waste Incineration Directive (WID) is a European law which aims to prevent or limit the negative effects of waste incineration on the environment. If you burn solid or liquid waste then the WID is likely to apply to you.
The WID places strict conditions and minimum technical requirements on operators. If the WID applies to your plant you will need to have strict controls on your emissions.
Complying with the Waste Incineration Directive
The WID applies to the burning of waste in a technical unit - see controls on types of waste burning units.
If you burn waste that is subject to the WID, you must have a WID-compliant Part A pollution prevention and control (PPC) permit for your incinerator.
Your permit will list the types and quantities of waste that you are allowed to burn. It will also include operating conditions, emission limits and monitoring requirements. You must comply with the conditions of your permit.
Exclusions from the Waste Incineration Directive
The WID does not cover the following types of waste burning plant:
- Experimental plants used for research, development and testing. These are excluded only if they are used to improve the incineration process and burn less than 50 tonnes of waste per year. They are excluded because of the nature of the plant, not because of the types of waste they burn.
- Plants that burn only waste in gaseous form. However, if a pyrolysis or gasification plant treats solid or liquid waste to produce a gas which is subsequently burned, both the initial unit and the gas combustion unit will be covered by the WID.
- Plants that do not fit the definition of a technical unit.
- Plants that do not fit the definition of an incineration plant or a co-incineration plant - for instance, if the primary activity is cleaning or drying equipment which also happens to combust waste, but where any burning of waste is incidental. Examples include cleaning paint from paint jigs, drying swarf to make waste metal suitable for feeding into a furnace, and using afterburners in emission abatement from a plant which is not an incineration plant.
The WID does not apply if your installation burns only the following types of waste, either on their own or in combination with non-waste fuel:
- vegetable waste from agriculture and forestry
- vegetable waste from the food processing industry - if the heat generated is recovered
- fibrous vegetable waste from pulp making - if this happens on the site where the waste is generated and the heat generated is recovered
- wood waste - excluding wood waste which has been treated with wood preservatives or coatings
- cork waste
- radioactive waste
- animal carcasses
NIEA or your district council can give you guidance on whether your plant is an incineration plant or a co-incineration plant.
If you burn any other waste in combination with these excluded wastes, the WID will apply.
If you have an animal carcass incinerator you will require an authorisation issued under the Animal By-Products Regulations.
Even if your plant, activity or waste is excluded from the WID it may still require a PPC permit, waste management licence or a registered waste exemption.
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Controls on types of waste burning units
An overview of the different kinds of containers, plant and equipment that your business can use to burn waste.
You may need a permit from the Northern Ireland Environment Agency (NIEA) or your localcouncil if you burn waste as a fuel on your site to produce energy or steam in a generator, furnace or boiler.
The Waste Incineration Directive (WID) applies to the burning of waste in a technical unit. Although any sort of container, eg a drum, could potentially be described as a technical unit, NIEA's interpretation of a technical unit is 'any piece of equipment that has been specifically designed or adapted for combustion of materials will be regarded as falling within the meaning of technical unit'. The WID does not apply to units which burn only exempt waste - such as some vegetable waste, clean wood waste and animal carcasses.
Waste may be burned in several different types of devices. NIEA or your district council will consider each type of device used to burn waste on a case-by-case basis.
Incineration plant
An incineration plant is any stationary or mobile plant or equipment used for the thermal treatment of waste, whether or not the heat generated from combustion is recovered.
Thermal treatment processes include pyrolysis, gasification or plasma processes where substances produced by the treatment are then incinerated.
Co-incineration plant
A co-incineration plant is any stationary or mobile plant that burns waste mainly to generate energy or produce a material product. The plant either:
- uses waste as a regular or additional fuel
- thermally treats waste to dispose of it
Wastes used in a co-incineration plant include:
- tyres
- secondary liquid fuels - oils, non-halogenated and halogenated solvents, organic acids, glycols, distillation residues, solvent-based inks, paints, adhesives, organic mixtures, viscous organic liquids, toxic solvents, organic sludges, amines and alkali
Small waste oil burners
If you operate a small waste oil burner (SWOB) you must have a Part A pollution prevention and control (PPC) permit from NIEA.
Drum incinerators
A drum incinerator that does not fall under the definition of a 'technical unit' is not subject to the WID. However, if you use a drum incinerator you may have to register it as an exempt activity.
Open burning of waste
Bonfires and open burning are not subject to the WID, but you may need a waste management licence or a waste exemption and you must not cause a nuisance or pollution.
Air curtain incinerators
You can only use an air curtain incinerator (ACI) to burn waste that is not subject to the WID. ACIs are also known as air curtain destructors, air curtain burners or air burners.
Regardless of the type of waste being burned, an ACI capable of burning more than 1 tonne per hour requires a Part A (mobile plant) permit. In most cases the use of an ACI would not be considered the best available techniques so a permit may not be granted.
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Do I need a permit for burning waste?
The different types of permits and licences that your business needs for burning waste in Northern Ireland.
In most circumstances you need a pollution prevention and control (PPC) permit, waste management licence or a registered waste exemption for burning waste. You must have the correct permits, licences or exemptions in place before you burn waste.
Most activities that involve burning waste are subject to the Waste Incineration Directive (WID). Even if the WID does not apply to your plant, you may still require a PPC permit or waste management licence if the capacity of the plant exceeds set limits, or a registered waste exemption.
Depending on the capacity of your plant and whether you are burning hazardous or non-hazardous waste, your permit will be from either the Northern Ireland Environment Agency (NIEA) or your district council.
Your plant may also need to comply with other legal requirements, such as the Animal By-Products (ABP) Regulations.
Burning waste in a WID plant
If you burn waste that is subject to the WID, you must have a WID-compliant Part A PPC permit for your incinerator - see requirements of the Waste Incineration Directive.
Your permit will list the types and quantities of waste that you are allowed to burn. It will also include operating conditions, emission limits and monitoring requirements. You must comply with the conditions of your permit.
Burning non-hazardous waste in a plant excluded from the WID
If you incinerate non-hazardous waste in a plant that is excluded from the WID, which has the capacity to burn no more than 50 kilograms per hour, your activity may be covered by a paragraph 29 waste exemption - see exemptions for burning waste. If you cannot meet the requirements of the exemption you must have a PPC permit or waste management licence.
If you incinerate non-hazardous waste in a plant that is excluded from the WID on premises which have the capacity to burn between 50 kilograms and 1 tonne per hour, you will need a Part C PPC permit.
If you incinerate non-hazardous waste in a plant that is excluded from the WID, which has the capacity to burn 1 tonne or more per hour, you may need a Part A PPC permit.
Burning hazardous waste in a plant excluded from the WID
If you incinerate hazardous waste in a plant that is excluded from the WID, regardless of the quantities or capacities involved, you will need a Part A PPC permit.
Burning waste gases
If you incinerate gaseous compounds containing halogens (other than incidentally when burning solid or liquid waste) you will need a Part A PPC permit. You also need a Part A PPC permit to burn gaseous compounds containing nitrogen and sulphur.
Other parts of your PPC permit or waste management licence covering combustion activities may apply to your plant.
Burning waste in the open
You must not burn waste in the open unless you have a waste management licence or a registered waste exemption. You must not burn waste material that produces dark smoke - see controls on burning waste in the open.
Incinerating animal carcasses
Your incinerator is excluded from the WID if it burns only whole animal carcasses, parts of animal carcasses that have been cut up for ease of transport or to make incineration easier, or unprocessed parts of carcasses. If it is excluded from the WID you will not need a WID-compliant permit. However, you may still require a PPC permit or a waste management licence, depending on the size of the activity.
If your incinerator burns only animal carcasses, and has a capacity of:
- less than 50 kilograms per hour and a net rated thermal input of less than 0.3 megawatts, you may qualify for a paragraph 29 exemption from waste management licensing
- between 50 kilograms and 1 tonne per hour and less than 10 tonnes per day, you need a Part C PPC permit
- more than 1 tonne per hour or more than 10 tonnes per day you require a Part A PPC permit
If you are incinerating animal carcasses along with other types of waste, the WID may apply and so you may need a WID-compliant permit.
If you have an on-farm incinerator burning only whole carcasses, you must meet specific standards set out under ABP legislation and the incinerator must be approved by the Department of Agriculture, Environment and Rural Affairs (DAERA).
If you are incinerating carcasses along with other types of waste you will need a PPC permit, waste management licence, or you may qualify for a paragraph 29 waste exemption. You will also need the relevant ABP authorisation from DAERA.
If you have a WID-compliant permit you do not need a separate ABP authorisation from DAERA.
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Exemptions for burning waste
When you need to register a waste exemption for burning waste in Northern Ireland and how to comply with conditions.
You must have the correct permissions in place before you burn waste. If you burn waste as a fuel or for disposal you may need a pollution prevention and control (PPC) permit or waste management licence from the Northern Ireland Environment Agency (NIEA) or your district council. However, depending on the type and quantity of waste that you burn, and your method of burning, you may qualify for an exemption from waste management licensing.
Waste exemptions are for specific low risk waste activities and so have fewer controls placed on them compared with permits and licences. You may need to register waste exemptions with NIEA.
If you have a waste exemption, you must comply with all of the exemption conditions. You must also ensure that your activity does not:
- endanger human health or risk harm to water, air or soil
- risk harm to plants or animals
- cause a noise or odour nuisance
- adversely affect the countryside or places of special interest
Exemption for burning waste in the open
You may qualify for an exemption to burn certain plant tissue and untreated wood in the open if:
- you burn the waste at the place where it was produced
- you burn no more than 10 tonnes in a 24-hour period
See controls on burning waste in the open.
Exemption for burning waste in an incinerator
You may qualify for an exemption to burn certain plant tissue and untreated wood in an incinerator or a waste combustion plant, if:
- you burn the waste at the place where it was produced
- the incinerator has a capacity of less than 50 kilograms per hour
- the waste combustion plant has a total net rated thermal input of less than 0.3 megawatts
This is a paragraph 29 exemption - find more information on paragraph 29 exemptions for burning waste in an incinerator.
Exemption for burning waste in a small appliance
You may qualify for an exemption to burn certain plant tissue and untreated wood as a fuel in a small appliance if you burn less than 1 tonne of waste as fuel per hour and the appliance has a relevant PPC permit.
This is a paragraph 5 exemption - find information on paragraph 5 exemptions for burning of waste as a fuel.
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What are the alternatives to burning waste?
Alternatives to burning business waste, and how to change your business processes to reduce waste and reuse materials.
When you burn waste in the open you are losing a potential resource and you also risk causing air, land and water pollution. You should find alternative methods of waste management wherever possible.
When considering your waste management options you should follow the waste hierarchy: reduce, reuse, recycle, energy recovery and, finally, disposal.
Better alternatives to burning your waste in the open are to:
- redesign your processes to reduce or eliminate waste production
- implement a waste minimisation programme
- reuse and recycle materials in-house
- send waste for recovery rather than for disposal, eg oils and solvents
- compost biodegradable wastes
- burn your waste in an authorised waste incineration plant or boiler that produces energy from the waste
- burn your waste in an authorised waste incineration plant, furnace or boiler
- dispose of your waste at an authorised landfill site
Industrial symbiosis is another name for exchanging or trading waste for mutual benefit or profit. Your unwanted waste may be a valued raw material for another business.
If you must burn waste on your site you may need a pollution prevention and control permit, waste management licence or a registered waste exemption. You must have the correct permissions in place before you start any burning activities.
Get a free sustainability report
All Northern Ireland businesses with an annual energy and resource spend of more than £30k can get a free assessment of their environmental performance across areas such as raw materials, energy, carbon, packaging, biodiversity and waste - find out more about Invest NI Sustainability Reports.
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