Expenses are very complex enterprise, ranging from raw material costs, production costs, maintenance costs, labor costs and others. With the manufacturing waste, the company will increase the cost burden. Therefore, all waste must be managed and removed from manufacturing.
How big is the burden borne by stocking waste which occurs in the production. This is a variable that is difficult to quantify because it involves the habits, activities conducted daily. Savings derived from lean manufacturing activities and reduce waste may be calculated if the tangible gains and losses can be known.
Actually, when analyzed more detail can be known with real profits and losses caused by reducing waste and other lean manufacturing activities.
For example, an irregular accumulation of goods will lead to wastage as follows:
1, the collection of goods which are at the bottom will add a few steps / movement to get her out. Should be enough with one step, because it is located at the bottom of the pile into 5-6 steps. If you can follow one step only, the saving of energy and time can be saved is a 5-step/movement
2. Without an orderly and clear labeling the time needed to find stuff will last long.
3. Placement of items that are not appropriate places because a lot of stock then placed without considering that the product is placed partially covering the road. So the rate of distribution of goods will be hampered and operator motion was also inhibited.
From the examples above may be little time can be saved, but if it can be done as a daily habit, and because it is done repeatedly even to thousands, the savings effects will be felt.