WASTAGE CONTROL

Submitted to: Prof. Ganachari

 Introduction

WASTAGE CONTROL
 Waste management
The process of managing waste materials. It involves the
collection, transport, processing and/or disposal of waste
materials.

The aim of waste management has been to prevent

or reduce the impact of waste materials on human
health or local amenity and reducing the impact of
waste on the environment and recovering resources
from waste materials.
Waste can be classified in as

 UNAVOIDABLE WASTE (or natural waste), in which

the investment necessary to its reduction is higher
than the economy produced.

 AVOIDABLE WASTE:- when the cost of waste is

significantly higher than the cost to prevent it.
 Classification of Wastes
according to their
Properties
Bio-degradable
can be degraded (paper, wood, fruits and others)

Non-biodegradable
cannot be degraded (plastics, bottles, old machines,
cans, containers and others)

5
 Classification of Wastes according to
their Effects on Human Health and the Environment
Hazardous wastes(HW):-The number of industries that
generate HW are maximum in Maharashtra (30.38%)
followed by Gujarat (22.93%). Minimum HW is reported in
Chandigarh (0.0069%).

 Non-hazardous wastes:- Waste management for non-

hazardous residential and institutional waste streams in
metropolitan areas is usually the responsibility of local
government authorities. And for commercial and industrial
wastes is usually the responsibility of the generator. 
Hierarchy of waste
management
 Modes of WASTE
GENERATION in industry
Overproduction.
Substitution.
Waiting time.
Transportation.
Inventories.
Movement.
Production of defective products.
Concept of Integrated Waste Management
Presents waste minimization conc
Waste Control is a part of
Waste Management
Waste Control

Scrap Control

Spoilage Control

Control of Defectives
Waste Control
Quantity Control:- It involves maintenance of
detailed records of quantities with an object to
detect shrinkage, breakage, loss etc

Quality Control:- Wastage may also occur from

loss of control on process or poor quality of
material.
Scrap Control
Residue material that has a recovery value
 Legitimate Scrap:-
Predetermined or anticipated in advance due to
experience in manufacturing operations.
Administrative Scrap:-
Results from administrative decision e.g. change in
design or withdrawal from saleable lots or for some
other reasons.
Defective Scrap:-
Resulting from poor quality of raw material,
negligent handling of material etc.
Scrap can be controlled in the
following ways:
 Material specification at the product design
stage.
 Selection of right material and equipment.
 Selection of right type of personnel with proper
training and experience.
 Determination of acceptable limits of scrap.
 Reporting the source of waste, quantum of
waste.
 Specific areas of responsibility.
Spoilage Control
Production that fails to meet quality or
dimensional requirements
Control of spoilage can be achieved in the following
ways :
 Control through predetermined standards.
 Control through fixation of individual
responsibility.
 Prompt & systematic reporting of spoilage.
Defectives Control
Part of production that does not meet
dimensional or quality specifications of
a product but which can be reworked by
additional application of material ,
labour and processing
 Control of defective requires a basis for evaluation
of performance.
 Standards may be fixed for occurrence of defective
work
Causes of Defective Control
 Poor quality of material
 Lack of skill or training
 Inadequate supervision
 Damage in material handling
 Defective or improper tooling and equipment
 Deficiencies in product design
 Inadequate inspection
Accounting Treatment of Waste

 Normal wastage is regarded as part of the

production cost and distributed over good units.
 Cost of abnormal wastage is excluded from total cost
and charged to costing profit & loss account.
 Any value realised from the waste is credited to
process account.
 Process ‘P’ Process ‘Q’ Process ‘R’

INPUT 2000 2000 1825

(-) NORMAL LOSS 40 100 183

EXPECTED OUTPUT 1960 1900 1642

ACTUAL OUTPUT 1950 1925 1590

ABNORMAL LOSS/GAIN 10(L) 25(G) 52(L)

Accounting of Scrap
If value of scrap is negligible, the good units
should bear the cost of scrap and any income
realised will be treated as other income.
 Value of scrap will be credited to the job or process
account and any unrecovered balance in the scrap
account will be transferred to costing profit & loss
account.
 If the scrap value is significant and it cannot be
identified with particular job or process, then the
net sales realisation after deducting the selling cost
is transferred to either material or factory overhead
account. This will have an effect in reducing the
factory cost.
Accounting of Spoilage
 If the cost of spoilage is normal then the cost is
charged to the specific order or treated as
production overheads.
 Cost of abnormal spoilage is charged to costing
P&L a/c .
 If spoilt units are reused as raw materials in the
same process, no separate accounting is required.
If spoilage is used for any other process or job, a
proper credit should be given to relevant process
account or job account.
Accounting of Defectives
 Cost of rectification of normal defectives is charged
to good units.
 If the defect is not identifiable to the particular
department, the rework costs are treated as general
overheads.
 If normal defectives are easily identifiable with
specific jobs, the rework costs are charged to that
job.
 Abnormal defectives costs are charged to the costing
P&L a/c.
 SWOT Analysis Of Integrated
Waste Management
Strengths
 Risk may be shared between authorities.

 Focuses on cost benefits from a holistic point of

view.

 Operational efficiencies.

 Economies of scale and reduced overheads.

Weakness
 Loss of proximity principle.
 Time and costs to secure funding and for procurement
process.
 Requires authorities to take on some risks impacting
other partners.
 External risks impacting on individual authorities may
not be shared.
 Few economies of scale.
Opportunities
 Authorities can change contractors/services more
easily and frequently.
 The scope of contracts may be tailored to encourage
greater market appetite from smaller specialist or
locally based companies.
 Shared Targets.
 Greater market appetite for larger contracts, more
competition.
Threats
 Individual authorities constrained from influencing
services beyond its boundaries.
 Likely to require more frequent tendering with less
long term stability.
 Short term focus may lead to higher costs in the long
term.
 Potential loss of community involvement and interest.
Case Study of Building Companies
Name of companies: Formoso,Isatto,Hirota.
Brazilian companies.
Formoso : Developers & Builders
Isatto : Developers & Builders
Hirota: Contractor for private clients.
Small organization
Sites are managed by a Civil engineer & Forman
Under graduate: Responsible for data collection
Objective of case study
Environment damage.

Results in reducing the future availability

Scare resources.

Identify and controlling waste for future availability of

material and energy.
 Concept of Waste In Building
Industry
• Any inefficiency that results in the use of

 1. Equipment,

 2. Materials,

 3. Labour

 4. Capital

 in larger quantities than those considered as necessary

 in the production of a building.

Waste Include

Incidenc Executio
e of n of Addition
Material unnecess al Costs
Losses ary work

•Not add value to the product.

•Waste should be defined as any losses produced by activities that
generate direct or indirect costs but do not add any value to the
product.
Classification of Waste (In General)
Unavoidable waste : In which the investment
necessary to its reduction is higher than the economy
produced.

Avoidable waste : When the cost of waste is

significantly higher than the cost to prevent it.
Classification of Waste In Managerial
Point of View
Overproduction
Substitution
Waiting time
Transportation
Processing
Inventories
Production of defective product
Study Analyzed Cause of Waste
The waste of building materials is far higher than the
nominal figures assumed by the companies in their
cost estimates.
There is a very high variability of waste indices from
site to site.
 Company do not seem to be concerned about material
waste, since they do not apply relatively simple
procedures to avoid waste on site.
None of them had a well-defined material
management policy.
Contd…
Most building firms did not know the amount of
waste they had before the development of the study.
Problem in flow in the management system, and have
very little to do with the lack of qualification and
motivation of workers.
 waste is usually the result of a combination of
factors, rather than originated by an isolated incident.
Inadequate design, lack of planning, flaws in the
material supply system.
Contd…
Data collection was very expensive, involving a large team of
researchers, including people who are heavily involved in
monitoring the work on site.
The results of data collection take a long time to implement.
This limits the impact of those studies in terms of corrective
action.
The results of such surveys take a long time to be produced,
usually after the work being monitored has finished. This
limits the impact of those studies in terms of corrective action.
Little involvement of people from the company in both data
collection and analysis. Because of that the learning process
tend to be very limited.
Tool to control waste
A protocol was developed for data collection, involving
the application of quantitative and qualitative
techniques.
Feedback from the site must be as much transparent
as possible and the people directly involved in the
process.
 Those people could learn from their own experiences
and commit themselves to the reduction of waste in
the process.
Contd…
After identifying causes method used has to be pro-
active, allowing the processes to be controlled during
the life span of the production process.
Post method emphasizes on learning how to learn
from process control in order to encourage the
learning process to happen in the whole system.
 Protocol used to
Preliminary meeting
define and monitor
to present the
the production
objective of study process

Related to Direction given

definition of to in charge of
control cycle data collection

Collecting Gets information

productivity data of
workers and usage of
about the output
materials of each activities.

Weekly data, Data: usage of

converted into material and man-
monthly and then hours spent,
analyzed data Periodical inventory

Audit
Monitoring Tools
Audit Tools
 No waste is best.
Waste has to be separated as
directed to use it.
Find Resources in Waste.

THANK YOU