Waste Management

Topics: Manufacturing, Computer, Robot Pages: 58 (19347 words) Published: July 17, 2013
9.1 Introduction and Meaning 9.2 Reasons for Generation and Accumulation of Obsolete, Surplus and Scrap Items 9.3 9.4 • •

Identification and Control of Waste Disposal of Scrap Exercises Skill Development



The industrial waste and scrap consists of spoiled raw-materials, rejected components, defective parts, waste from production departments etc. involves some commercial values. They should be disposed of periodically and proper credit of the amount should be taken in the books of accounts. Hence, waste management places an important role in managing operations. Wastes can be categorised into obsolete, surplus and scrap items. 1. Obsolete items: These are those materials and equipments which are not damaged and which have economic worth but which are no longer useful for the Company’s operation owing to many reason such as, changes in product line, process, materials, and so on. 2. Surplus items: These are those materials and equipments which have no immediate use but have accumulated due to faulty planning, forecasting and purchasing. However, they have a usage value in future. 3. Scrap: It is defined as process wastage, such as, turnings, borings, sprues and flashes. They may have an end-use within the plant having commercial values. Hence, should be disposed of periodically. 9.2 REASONS FOR GENERATION AND ACCUMULATION OF OBSOLETE, SURPLUS AND SCRAP ITEMS

Following are the reasons for the generation and accumulation of obsolete, surplus and scrap items: 1. Changes in product design: This may lead to some items getting invalid so far as the final product is concerned. Hence, the entire stock of such items as surplus obsolete. 227



2. Rationalization: Sometimes raw materials are renationalized so as to minimise variety and simplify procurement. The rationalization process renders some items as surplus or obsolete. 3. Cannibalization: When a machine breakdown occurs, sometimes it is rectified using parts of an identical machine which is not functioning due to various reasons. This process of ‘cannibalization’ is not uncommon in many project-based industries. When continued unchecked, this results in obsolete and scrap items. 4. Faulty planning and forecasting: The marketing department may have projected a sales forecast which might be on the higher side. Any material planning has to be based on sales forecasts and this could result in surplus items. Wrong indenting by the user departments also leads to accumulation. 5. Faulty purchase practices: Sub-optimizing decisions like buying in bulk to take care of discounts and transportation economy without taking into account factors such as, shelf life, storage space requirements and technological changes once again lead to the accumulation of surplus and obsolete stocks. 6. Other causes: Many items are held as insurable spares for many years without any consumption. Faulty store-keeping methods, without adequate preservation, lead to spoilage. Inferior materials handling, improper codification and poor manufacturing methods also result in obsolete, surplus and scrap items. Poor maintenance of machine tools may result in excessive tools wear and greater process scrap. 9.3 IDENTIFICATION AND CONTROL OF WASTE

The combing process of combining the stock records and movement analysis has been found very effective in locating such stocks in the total inventory. Stock issue cards should be combed and items which have not been consumed (non-moving) for a period of one year must be isolated. A list of such items and their value in terms of money and time must be made. Similarly, such lists must be prepared for items which have not moved for 2 years, 3 years, 5 years and above. Such lists can then be put up to top management for disposal action. Care must be taken to prepare a separate list of imported spares and insurance items. Such combing and movement...
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