Eliminating Waste in Companies

The global economic recession has caused a reduced volume of orders, market saturation and low price competition pressure, so it is the right time for reorganization and optimization of companies and not for dismissal of employees. By dismissing employees the company loses good staff, employees accustomed to the work in their company, the moral of workers decreases and the reputation of the company diminishes. For these reasons, the companies must exploit this global crisis and during this time, with fewer orders, shift as much energy as possible to improve the organization of the company. This primarily means evaluation of processes and problems that have occurred during production and could not be removed before due to the lack of time, or employees were not able to remove them because they did not have enough knowledge. Recession is the time to fix enterprise's internal problems and eliminate waste. In most companies, the share of activities that truly create new value is less than 10%. All other activities that do not create value can be attributed to waste. Eliminating waste is the first step towards automation and introduction of Kaizen system (continuous improvement). The article will summarize the wastes as a stimulation and consideration for companies that want to address and eliminate waste.