Every employer, no matter how big or small, knows that waste makes a significant dent in the company’s bottom line. Waste is responsible for the loss of countless manpower hours, materials used in production and also in the amount of damage industry is causing the ecology. There is no end to the harm waste can cause in literally every end of a going concern that it is unfathomable why more companies don’t provide waste reduction and productivity training for their staff. Courses like the first level Six Sigma White Belt do cost money to provide, but the amount of waste eliminated coupled with increased productivity pays for the course many times over. As food for thought, take a look at what waste reduction means to your business.
Reducing Wasted Manpower Hours Increases Productivity
An interesting article published on simplyorderly.com listed some pretty amazing statistics on the amount of wasted time Americans are responsible for. Citing US News and World Report, the article mentions that the average American wastes up to one year of their life looking for things they’ve misplaced or lost. The article includes statistics like:
-Americans spend an average of 6 minutes searching for lost keys some mornings (IKEA)
-Almost one hour spent daily finding things owned but misplaced (Newsweek)
-Average employees spend a total of hours equaling 6 weeks annually looking for things (OrganizedWorld.com)
And those are just a few of the noteworthy statistics on wasted hours. Take a quick look at the amount of time you are paying your employee to ‘look for things.’ That’s right 6 weeks which equates to 1.5 months. What employee wouldn’t love to have a paid vacation for that duration? In effect, you are paying for a ‘wasted hours vacation’ when continuing to pay for the time spent hunting things down.
Wasted Space Costs More than You Think!
Some companies rent their facilities and of course, rent is typically prorated per square foot. Wasted space can quickly add up if you are storing materials no longer needed or wasted from day to day. Some companies store single-side printed papers to be used as scratch paper later and over time this can up to reams and reams of paper. One or two storage rooms that are no longer in use because of waste reduction can significantly reduce the amount of space you need and then that saving is passed on in terms of rent.
Also, consider the cost of climate control in those extra storage areas. To keep a room warm in the winter and cooled in the summer eats up a huge portion of your energy budget. Wouldn’t it be nice to cut that expenditure by as much as 33%? It can be done by conserving the amount of space you keep warm or cool.
Tax Credits for Eligible Energy Efficient Businesses
According to the Small Business Administration, there are several tax credits available for businesses focusing on energy efficiency. Isn’t a reduction in the amount of energy you use a form of waste reduction? You can bet it is a major one! Not only do you save money by reducing waste but you also save money by qualifying for tax credits, thereby reducing the amount of taxes owed.
If you haven’t taken the time to seriously analyze how your business is wasting invaluable resources, now is the time to do so. Learn what waste reduction means to your business and by this time next year you will see a definite improvement in your bottom line. You are in business to make money so learn to reduce waste and watch your profits grow.
