The 8 types of waste in industry and how to systematically eliminate them

Minimization of waste in industrial processes is a core component of modern transformation strategies. Waste is defined as inefficient use of resources, which significantly increases both production costs and environmental footprint. Studies show that systematic reduction of such misallocation not only boosts competitiveness but also contributes significantly to reduction of CO₂ emissions. So the crucial question is: what systematic approaches and technological tools enable a sustainable minimization of waste?

The ERP and MES solutions from ADVARIS provide a comprehensive concept for identifying and eliminating inefficiencies along the entire value chain. These systems not only boost operational efficiency, but also reinforce sustainable corporate governance.

A systematic overview: The eight types of waste

According to the concept of the Toyota production system developed by Taiichi Ohno, waste occurs in seven forms, which have been supplemented by an eighth through the lean management approach:

1. Transport: non-value-adding movement of materials.
2. Storage: excessive inventories that tie up capital and harbor risks.
3. Movement: Unnecessary physical activity by employees.
4. Waiting time: Inefficiencies due to poorly synchronized processes.
5. Overproduction: Manufacturing in excess of actual demand.
6. Manufacturing process: Additional work or product features with no added value for the customer.
7. Defects: Defective products that require rework or scrap.
8. Unused employee knowledge: Employees' know-how is not fully utilized.

The focused elimination of these types of waste provides a systematic approach to increasing efficiency and productivity. It also enables companies to not only realize economic benefits, but also significantly reduce their environmental impact. A thorough analysis and continuous optimization of processes is the basis for this transformation.

Industry 4.0 as a catalyst for resource inefficiency

The digital transformation at the heart of Industry 4.0 offers significant potential for identifying and eliminating waste along the entire value chain. Smart technologies such as data-driven systems improve operational efficiency and promote the implementation of sustainability strategies. Real-time analyses, AI-supported algorithms and sensor technology make it possible to collect extensive data volumes and continuously optimize processes.

By integrating Industry 4.0 technologies into production systems, companies can respond quickly to deviations and establish a culture of continuous improvement in the long term. Studies by Fraunhofer IAO and Bitkom highlight the immense economic opportunities. At the same time, the analysis of resource efficiency shows that Industry 4.0 not only reduces costs, but also helps to reduce the ecological footprint.

Enhanced efficiency through optimized material flows

Material movements are part of everyday life in every manufacturing company. Raw materials have to be stored and transported to the appropriate machines at a later point in time. Material movements are therefore unavoidable, but are often inefficiently designed. ADVARIS ERP & MES enables precise control of the material flow by means of transport orders created on a demand-driven basis. Real-time information about inventories and requirements minimizes unnecessary transportation and intermediate storage, thereby reducing energy consumption and costs. Visualization of material flows in real time via Shop Floor Control (SFC) enables the identification of bottlenecks and optimization potential.

Reduction of inventories and capital commitment costs

Capital commitment costs arise when paid raw materials or other materials remain in the company. Reducing excessive inventories is a key to boosting efficiency. The goal must be to purchase and store only as much material as is actually needed. At the same time, companies should manufacture products quickly and make them available for transport to the customer without delays. This minimizes capital commitment costs. To put it in a nutshell: every material in the factory – whether raw material, unfinished product (WIP) or finished product – incurs costs as long as it is not sold.

ADVARIS offers high-performance tools for monitoring and optimizing inventories in real time. As early as the planning phase, the system calculates requirements precisely and compares them with the available inventories. This reduces work in progress (WIP) and capital is utilized more efficiently. In addition, the system adapts dynamically to short-term changes in the demand situation – a clear competitive advantage.

Minimization of unnecessary movements

Avoidable work by employees is an often underestimated source of wasted time and energy. Modern automation solutions optimize work processes and boost efficiency. Automation of transport operations, for instance, ensures that materials, coils and tools are provided at machines or removed in good time. Hand-held scanners accelerate operations, while integrated sensors capture and provide data in real time. The technologies of ADVARIS boost productivity, reduce the burden on staff and promote well-being in their everyday working lives thanks to ergonomically optimized operations.

Reduction of waiting times

Waiting times occur when processes are not optimally coordinated. This results in inefficient utilization of machines and personnel, declining productivity and lower employee motivation. Delays can also occur in the case of customer inquiries: if an order or inquiry is not processed swiftly due to internal deficiencies, this frustrates the customer and undermines trust in the company.

ADVARIS MES minimizes waiting times by means of fully automatic detailed planning which takes into account machine master data such as capacities, setup times and production speed. Maintenance orders are integrated into the planning, while real-time interfaces transmit the current machine status. This means that planning adapts dynamically to changes, and algorithms detect potential bottlenecks at an early stage. This ensures efficient utilization of machines and personnel and increases efficiency.

Preventing overproduction

Overproduction wastes resources, drives up costs and does not create any genuine added value for the customer. Production volumes can be precisely aligned with actual demand using planning software from ADVARIS. Functions such as consideration of individual lengths and optimization of parameters such as wall thickness and diameter avoid unnecessary rework.

Machine learning adapts the processes to changing conditions. The result: lower inventories, less waste, lower costs – and more efficient production offering customers genuine added value.

Avoiding overengineering

Overengineering or overprocessing in a manufacturing process occurs when resources are used for features, processes or systems that do not create any additional customer benefit. Examples of this are over-complex processes, unnecessarily high quality standards or oversized systems with low capacity utilization. To avoid over-engineering, a clear customer focus is essential: only develop and implement what actually meets the requirements of your customers. Tools such as design thinking enable precise analysis of needs and targeted design of solutions. In the field of cable and wire production, the ADVARIS ERP & MES solution contributes to the design of more efficient and cost-effective processes through rule-based engineering of the products, detailed planning and optimization of production lengths, spool sizes and tolerances.

Quality assurance and predictive maintenance

Production processes face two main problems: machine defects and product defects. Both can result in high costs, loss of time and deterioration in quality. Technical defects in machines are often unforeseeable and significantly disrupt the planned process. The consequences range from production stoppages to delayed deliveries.

ADVARIS software solutions combine real-time monitoring and predictive maintenance in order to maximize machine availability and product quality. Anomalies are detected at an early stage, while analysis of historical and current data accurately predicts malfunctions. Automated inspection plans assure quality throughout all production stages, and integration in the detailed planning system minimizes shutdowns and scrap. Data analyses also promote sustainable optimization. The ADVARIS system thus creates efficiency and reliability in one.

Digitization and utilization of employee knowledge

An often-underestimated aspect of waste is the unrealized potential of the knowledge and experience of employees. There is enormous untapped potential in the minds of the workforce, especially in manufacturing companies. Ideas for process optimization, innovative solution approaches and best practices often remain hidden because they can neither be recorded systematically nor integrated into existing workflows.

ADVARIS Product Data Management (PDM) allows central design rules, planning and setup times and other manufacturing parameters to be recorded systematically and made digitally accessible. Knowledge silos are broken up during the implementation phase. In addition, ADVARIS offers a platform with its workflow tool for documenting knowledge and creating standardized operating procedures (SOPs).

The ADVARIS systems thus promote a company-wide knowledge culture that integrates the skills of all employees. This results in more efficient processes, more innovations and enhanced competitiveness.

Conclusion: Avoiding inefficiency as a strategic goal

Reducing waste is more than just an economic obligation – it is a strategic opportunity to combine ecological responsibility with economic success. Companies that make minimizing waste the core element of their strategy not only create efficiency, but also competitive advantages. However, successful implementation requires more than technologies: it demands an integrated approach that integrates processes, people and tools.

ADVARIS combines the strengths of modern Industry 4.0 technologies, such as ERP and MES solutions, with the principles of lean management. This enables companies to systematically identify inefficient processes, reduce waste and significantly improve their environmental footprint. Consistent data analysis and automation enable precise planning, cost reduction and quality improvement along the entire value chain.

With ADVARIS as your partner, you get more than innovative software solutions. You also benefit from the expertise and decades of industry experience of the ADVARIS employees. This combination provides you with lasting support in the digital transformation of your organization and offers you the basis for long-term success – efficient, resilient and future-proof.

Get started now with ADVARIS and optimize your processes to take your production to the next level.