With the continuous increase in population, demand for production is growing at an exponential rate. Per capita consumption has a direct relationship with population, thus pressing manufacturers to produce more in a timely manner. The expectation is to perform at a certain level in order to maintain both quality and quantity standards. With such a high demand from consumers, it is crucial for manufacturers to be efficient in their processes, leaving minimal room for waste. While acknowledging the issue, many come to realize the impact that production waste causes in a more holistic view. Having an understanding of the benefits of waste reduction can have is an essential part of success. 

For manufacturers, “waste” is the production of undesired or faulty products, and waste minimization is one of the leading challenges manufacturers are facing today across all industries. The ‘fully loaded’ cost of waste is huge – a general rule of thumb is to multiply the cost of scrap by 10x to arrive at the true cost of waste to the business.   

Much of this waste is due to the hidden wastes that are often overlooked in manufacturing. Understanding the benefits behind minimizing waste and preventing losses is crucial for profitable/successful manufacturing.  

The causes of production  waste and the steps necessary to mitigate it

Much of the losses manufacturers are seeing today is unintentional. The root causes of the waste – specifically in process manufacturing industries – often stem from process inefficiencies in the production line. 

The solution to reducing waste in manufacturing begins with Industry 4.0. 

Although the blame for losses and waste falls on process inefficiencies, often, people tend to blame it on technology, or rather lack of technology. This is why It is important to understand the crucial role technology  plays in reducing waste for manufacturers. 

Today, many industry leaders have begun adopting solutions to help reduce their waste. Manufacturers from around the world are undergoing major transformations in order to decrease manufacturing losses. The adoption of Industry 4.0 has helped  many manufacturers in this mission.

Artificial intelligence plays a strong role in their efforts. Having the ability to predict and prevent production waste using automated root cause analysis and predictive analytics is a great way to reduce quality losses and defects.  By introducing process-based machine learning to your factory, you will be able to see an accurate representation of your production floor, having the ability to monitor each stage of the production process. This is all enabled with a digital twin, which replicates a company’s production floor to better analyze processes. Having these insights allows to mitigate waste, and as a result leads to many short and long term benefits. 

How reducing waste can maximize Short and Long Term benefits for manufacturers

As a result of waste reduction practices, productivity is automatically increased. Having the ability to monitor your production in real-time contributes largely to this. This relates to the efficiency and use of raw materials, labor hours, and time, all of which will reduce costs for manufacturers. By taking the steps necessary to mitigate waste and increase throughput, manufacturers will see large savings in all of these categories. 

There is also an incentive for waste reduction in regard to environmental and sustainability efforts that cannot go ignored. Companies that are putting effort into promoting a greener approach to manufacturing create a better brand image for themselves. With the strong push towards sustainability in society today, this is a great marketing approach with a long-term return for manufacturers moving forward. 

The task of implementing these waste reduction solutions may seem daunting, but understanding both the long and short term benefits of doing so will convince you to make the switch immediately, leaving no time to waste (pun intended).


Whether your objective is to comply with environmental initiatives or to save money, there are many reasons to take part in waste minimization with many resources available to do so. 

It is also important to recognize that the complete elimination of waste is near impossible, but taking the steps to reduce waste as much as possible is the ultimate goal, having a lasting impact. 

Don’t WASTE an opportunity moving forward. 


To take action with production optimization and begin to see the benefits of waste minimization in manufacturing, click here.