Professional Documents
Culture Documents
11
WASTE PREVENTION THROUGH MANAGEMENT EXPERTISE
MANY FORMS of non-physical waste occur in contexts where the em-
ployment of management skills can actually prevent such waste. These
wastes are generated largely through activities that depart from or
ignore well established guidelines in the management sciences for the
optimum solutions of recurring management problems. These wastes
are considerable in magnitude. In the innumerable applications of
such relatively new disciplines as operations research, systems theory,
cybernetics, linear programming, input-output analysis, queueing the-
ory, etc. (fields in which there is much overlap), we tend to focus our
attention upon the analytic skills developed for applicable problems.
If the best practical solution to a given managerial problem is achiev-
able by the application of an available methodology, but the manner
in which we actually sdve that same problem is a glaring departure
from it, then waste of some sort occurs.
For example, various types of scheduling problems are optimally
solved by different types of mathematical linear programming ap-
proaches. Usually different factors in any given scheduling problem
are to be maximized or minimized, as in industrial production sched-
ules, certain types of transportation problems, the scheduling of ware-
house operations, of employment in retail stores, of certain classes of
retail mechaodise stocks, of working capital, etc. (!0).
Failure to use the optimal solution to a scheduling problem will
often result in 1. less than maximum production of certain commodi-
ties per unit time; 2. excess costs in filling a given commodity order
or providing a given service; 3. excess depreciation of plant and
equipment per unit of revenue realized, and 4. excess direct and in-
direct burden per hour of warehouse operations, etc. All involve
waste of money, or of materials, time, power, energy, labor time,
human talents, etc. In principle, all t h e ^ types of waste are mea-
surable.
Today, in tens of thousands of factories, shipping firms, maritime
agencies for the distribution of cargo, farm operations, highway de-
Concept of Waste 277
Ill
HIGH LEVEL, NON-INDUSTRIAL MANAGEMENT SKILLS
SOMETHING SHOULD BE SAID about the range of meaning which the
term, "management," carries in the present context. By and large the
focus of meaning consists of the various production contexts in the
organization of work. But there is another different and higher level
of management where errors, mistakes in judgment, improper methods
for data collection, incorrect methods of analysis, wrong priorities, etc.
may even produce disaster. I am thinking here of the enormous
variety of decision-making that takes place in what we now call
"think tanks"organizations such as Rand, the System Development
Corporation, the Hudson institute and Arthur D. Little, Inc. In
1969 the National Science Foundation reported that in 1967 there
were 11,355 Research and Development (R&D) companies in the
nation. A substantial proportion of these were sufficiently prestigious
intellectually to deserve the designation "think tank" (14).
The management type of decision-making which takes place in
"think tanks" is often hidden under the euphemism of development.
The intellectual skills of the managerial type needed for the "think
tanks" are often, in many respects, of a higher order than those used
for the organization of work in industry and in the complex decision-
making activities of industrial management. They are also most fre-
quently applied to problems that are quite different in structure and
nature from those faced by managers in industry. Nevertheless they
occasionally also have a clear potency for creating waste, if improperly
employed. More importantly, however, they are able to unearth
wastes of various sorts that are incurred in contexts that lie outside of
industrial milieus.
An example of the abuse of high-level managerial skills occurred
in the 60s when a report, produced by the Logistics Management In-
stitute (LMI) of the Pentagon, was promoted by Clark Clifford, then
Concept of Waste 279
The request was put into the hands of Albert Wohlstetter, who has
been described as a mathematician/economist. Wohlstetter did not
treat the request in the expected, straightforward manner. Instead
he chose to examine critically the assumptions that were inherent in
the original problem posed by the Air Force. Wohlstetter and his
staff translated the problem into the question of determining the
options that were open to the nation in positioning its strategic forces.
Wohlstetter concluded that adding such bases was not only too risky
because aircraft positioned overseas, closer to the Soviet Union, were
too vulnerable to surprise atomic attack on the ground. They were
also more costly, less of a deterrent and more of a problem for U.S.
international relations than a plan proposed by Wohktetter. He
recommended the building of more bases in the U.S. and only sup-
plementing them with small overseas installations for refueling air-
craft (16).
The impact of Wohktetter's report was tremendous. His recom-
mendations were carried out by the Air Force, and it signiiicantly
changed American strategic thought. It had a substantial influence
on certain aspects of American foreign policy. It altered in great
measure our defense policy, since it led to the doctrine of second strike
capacity. But it is the cost savings generated by the Wohlstetter
report that must be emphasized here. The Air Staff concluded that the
report had saved over a billion dollars in construction costs. By impli-
cation, it lays bare or unearths the waste of money, men and material
that had taken place in the years preceding the report, when the Air
Force had used less appropriate methods for its vital activities in con-
nection with our national defense. The Wohlstetter plan saved addi-
tional, very large amountsperhaps tens of millions of dollarsin
annual operating costs that would otherwise have been incurred.
AH these same types of cost wastes were also prevented abroad, to the
extent that other nations were able to inaugurate practically some of
the features of the Wohlstetter plan. It is in all these senses of cost
savings that we can say the analytic methods of the management
sciences can, and do, prevent waste.
tv
PROCESSES, SITUATIONS AND CONCEPTS RELATED TO WASTE
BUT WHICH MUST BE DISTINGUISHED FROM IT
MANV PROCESSES AND SITUATIONS related to waste must, at the same
time, be' distinguished from waste. These are often regarded as ex-
Concept of Waste 281
and losses that are clearly the social costs of "progress" but where the
same progress could have been achieved through alternative approaches
that would not have generated the same social costs (20).
There are other numerous situationsnot classifiable as processes
or lossesthat are said to be waste when, in fact, they are examples of
human error, misjudgment or folly, wrong choices in priorities, lack
of wisdom and foresight in the choice of values, etc. These situations,
of course, may eventually lead to some kind of waste. Among situa-
tions not properly classifiable as processes or losses, we might include:
failure to act on futuristic predictions which, at the time they were
made, were expected to be reasonably reliable, and where such failure
to act has ushered in sequelae that have produced reductions in goods
and/or services that fall within either the public interest or large areas
of private interest; public actions that lead to unnecessary reductions
in the standard of living or the quality of life; public actions and
decisions that lead to benefit/cost ratios greater than one but where
other public actions and decisions in the same context and for the
same goals could have led to B/C ratios that would have been much
greater; setbacks suffered by communities in trying to deal with major
stressful problems, where the setbacks were the result of choosing
wrong or improper social indicators to monitor the expected alleviation
of the social problems in question; erroneous public solutions to prob-
lems of distributive justice, such as, for example, social security legis-
lation that failed to take into account changing population trends,
changing ratios of the active labor force personnel to retirees receiving
social security benefits, or increased social security taxes coupled with
higher tax brackets for social security recipients, so that both the dis-
posable income and the total purchasing power of such recipients have
been reduced; improper balances struck between activities regulated
by centralized decision-making and activities governed by decentralized
decision-making, where the public welfare is at stake; and the setbacks
to general welfare produced by the creation of dysgenic, social systems
or dysgenic, administrative procedures.
Finally, it should be noted that the losses in lives and property
produced by war are often regarded as one of the leadingif not the
majorsources of waste by man. Such losses are not, I believe, most
adequately treated by regarding them as waste. The need to charac-
terize our failure to beat swords into ploughshare should, I feel, be
looked at differently. The costs of war and other failures in conflict
Concept of Waste 285
referred to would prove too copious to be of any practical value and too detailed
to provide the general features of the processes and situations we are seeking to
emphasixe. However, a feeling at least for the types of managerial misjudgments
that are often tal^en to reflect wasteful practises and activities (to which, of
course, they do sometimes lead) but which, in fact, reflect more often had hahits
of judgment, a poor sense of priorities, or an irrational and obfuscated sense of
values, can be provided by certain writings. Let me mention three. One is the
excellent volume entitled Valve Systems and Social Process, by the versatile
British administrator and thinker, Geoffrey Vickeis, Value Systems and Social
Process (Harmondsworth, Middlesex, England: Penguin Books, 1970), 221 pp.
This volume seeks to improve judgment by exatnising the essential features in-
volved in such processes as choosing, planning, controlling, revaluing, appreciat-
ing, learning and surviving. A second contribution is the deeply thoughtful vol-
ume by Yehezkel Dror, entitled Design For Policy Sciences (New York: American
Elsevier Publishing Company, 197J), 156 pp. Chapter 3 {"Particular Weak-
nesses of Management Sciences," pp. 12-16), is of particular relevance.
19. R. Buckminster Fuller, Nine Chains To The Moon (London and Amster-
dam: Fefier and Simons, 1970), fifth printing, 375 pp.
20. The previous paragraphs of the text have stressed the concept of "loss"
as only one of the central concepts that must be distinguished from the many
different meanings that we customarily attach to the term, "waste." Here again,
any effort to illustrate each type of such loss would demand too extensive and
detailed a set of examples. The term, "loss," is used in too many difierent senses.
But a general impression of what thinkers have in mind when they describe
losses in various types of contexts & always obtainable. Let us mention the
notion of loss as it is invoked otUy in an environmental or ecological context.
For such a context a few outstanding works have appeared which, in whole or
in part, give some substance to the notion of loss. Among the more technical
or scholarly works of environmentalists, in this context, see Paul R. Ehrlich and
Anne H. Ehrlich, Population Resources Environment: Issues In Human Ecology
(San Francisco: W. H. Freeman and Company, 1972), 509 pp., and Robert Leo
Smith (ed.). The Ecology of J/on. An Ecosystem Approach. New York:
Harper & Row, 1972. 4S6 pp. Among the setni-popular volumes available are
Barry Commoner, Tke Closing Circle: Nature, Man & Technology (New York:
Bantam Books, 1974), 343 pp., and Gordon Rattray Taylor, The Doomsday
Book: Can the World Survive! (Greenwich, Conn.: Fawcett Publications, 1971),
320 pp.
For a context that ii preoccupied both with environment and resource man-
agement and their relationship and which will provide numerous ideas succinctly
related to potential losses, the reader will find richly rewarding a highly scholarly
and technical voiume by Kenneth Watt, Ecology and Resource Management:
A Quantitative Approach (New York: McGraw-Hill, 1968), 450 pp.