Measures the percentage of waste reduction in the production process over a defined period.
What it Measures ?
How much waste we’ve reduced over time.
Relevant StakeHolders
Operations Manager, Production Manager
Why it Matters ?
Encourages waste reduction in operations.
In-depth Use Case / Real-world Example
Waste Reduction Percentage tracks how efficiently a manufacturing process minimizes waste during production. For example, if a factory reduces waste from 10% to 5%, the waste reduction percentage is 50%. This is calculated by comparing the amount of waste produced before and after a specific improvement. Waste reduction helps companies lower costs, optimize resource usage, and contribute to environmental sustainability. By identifying and eliminating inefficiencies, businesses can reduce raw material consumption, lower disposal costs, and improve overall profitability.
KPI Definition
Business Value
Movement Direction
Sample Formula
(Initial Waste - Current Waste) / Initial Waste * 100
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