PLANT OPERATORS frequently play the role of garbage collectors at the expense of manufacturers. Instead of producing, they're gathering scrapped parts and materials to be recycled, reused or discarded. Facing foreign competitors who already are able to produce parts and materials at a significantly
Although manufacturers expect some scrap will be generated during the production process, truly lean operations strive for little or no scrap. These companies employ a variety of continuous-improvement methodologies, including Six Sigma, Multivariable Testing (MVT) and simple chart analyses, to reach their scrap-reduction goals.
Manufacturers tend to be more successful in their scrap-reduction efforts when they use some type of scientific approach rather than basing their plans of action on experience, says Ralph Rio, research advisor, ARC Advisory Group, Dedham, Mass. "Unfortunately, most manufacturers are going by tribal knowledge, meaning someone has an opinion about how to fix a particular operation or to reduce scrap and, by dominance of their personality, has a change implemented," he says. "Sometimes it works, but usually it doesn't."