How We Saved Millions of Dollars from a Scrapyard!
After a quick site visit to a steel company in Malaysia, we noticed that they had an immense amount of scrap! We performed a thorough analysis of their process from start to finish, and after analyzing the waste, we informed the CEO that we could generate millions of dollars in savings.
He was shocked. and asked, “How?”
Simply using Asaichi (finding the root cause of waste) to make the most of every dollar spent.
We went through the scrap to identify the root causes that were generating such immense levels of waste, which had been a result of redundant transportation of materials, causing precious goods to prematurely rust. We then developed a detailed plan that prioritized the adjustments based on eliminating as much scrap as possible.
Within the first 12 months of implementing the plan, the scrapyard saved over a million dollars, with a projected savings of over 10 million in the next decade.
For a case study on increasing your operational efficiency click here or press here to see how you can minimize scrap in your organization.