The impact of waste reduction in business : can waste reduction in the manufacturing industry be cost effective for the business?

Abstract

Organizations are inclined to emphasize and invest their resources mainly on research and development, training of personnel and new technology to improve the business. This project will look into other elements which can improve the business, improvement which can reduce expenses and increase profits. It will look into waste reduction, an element which also helps to improve quality and customer satisfaction, two important elements in the manufacturing industry. The evidence is based on the collection of figures (data) from different departments within the company. The data is collected mainly from reports and documents which have been prepared from the different functional and supportive departments. Other data was composed together drawn up using observation methods. The focus of this case study is the cost the firm disburses on different elements to produce the final product. The main two elements which this case study applies are essentially the cost of man hours and the cost of material. The former consists of the cost of remuneration of the employees performing the respective tasks; while the cost of material comprises of the price paid to buy the raw material consumed for the product. To demonstrate the impact of the decisions and actions implemented on the business in the production of the beverages and selected activities all data was converted into monetary value.