The composting industry is coming of age. From municipalities to the general public, people are discovering multiple ways to use the organic material. To capitalize on the growing number of opportunities for compost, producers need to adopt manufacturing processes that are efficient and cost-effective. And, according to Ted Dirkx, applications specialist for Recycling and Forestry at Vermeer Corporation, there is a lot the composting industry can learn from other sectors’ manufacturing processes.
“Having spent a significant amount of time visiting customers throughout the world, I believe there are many similarities between the composting industry and other types of manufacturing — including our company,” Dirkx said. “For Vermeer to get to where it is today, it was more than just adding people and other resources. More than 20 years ago, the team at Vermeer began to incorporate Lean Manufacturing principles to help improve our processes and the quality of the machines we produce.”
What is lean manufacturing?
The most straightforward definition of lean manufacturing is the relentless pursuit of waste elimination. When effectively implemented, adopting lean manufacturing principles can help improve quality, bring efficiency to production and delivery times, and lower associated costs.
“At the end of the day, lean manufacturing is the ability to identify and eliminate waste in the production process,” Dirkx explained. “I have visited a lot of growing composting companies that are focused on adding people and wheel loaders to keep up with demand instead of looking for ways to improve the setup of their operation. For example, with a few adjustments to the layout of their operations, they could reduce the amount of time spent moving material, which could reduce labor costs.”
Basic principles
To successfully implement a lean manufacturing process, there are a few basic principles that organizations need to adopt.
Lean is:
- A change in culture
- Customer-focused
- A growth strategy
- A journey, not a destination.
“There are many, many books and trained experts around the world that can help an organization implement lean manufacturing processes,” Dirkx explained. “However, lean manufacturing is only successfully implemented if everyone in an organization is on board with uncovering and subscribing to better production methods to meet the needs of customers. And, it has to be an ongoing process — as customers’ needs change, a company has to be able to adapt.”
Identifying waste
To begin the process of identifying waste, company management needs to understand how their employees perform their job. “Companies need to divide their work into three categories: Tasks that add value, non-value-added work and necessary non-value chores,” Dirkx suggested.
Value-added work
- Transforms material into an end product
- Customers are willing to pay for it
- Done correctly the first time
- Example: Grinding and turning material
Non-value-added work
- Doesn’t produce an end product
- Customers aren’t willing to pay for it
- Creates waste and consumes resources
- Example: Excessively moving material or producing a product that won’t sell
Necessary non-value-added work
- Activities necessary to run the business
- Needed to meet regulations requirements
- Example: Training and ensuring the facility meets safety requirements
According to Dirkx, most companies only spend around five percent of their time doing direct value-added work and necessary non-value another five percent. “The vast majority of employees’ time is spent doing non-value-added work, so there is a tremendous amount of opportunity for a company when waste is eliminated,” he said. “Even the most efficient operations still only spend around 15 percent of its time performing value-added and necessary non-value-added work.
“It’s impossible to eliminate 100 percent of non-value-added work,” Dirkx continued. “The real goal is shrinking the time frame to get from point ‘A’ to point ‘B’ without sacrificing quality.”
Eight forms of waste — “DOWNTIME”
There are several common forms of waste that companies need to be on the lookout for, including:
D: Defects — production that results in scrap or rework
O: Overproduction — producing without an order
W: Waiting — delays between activities
N: Non-utilized talent — underutilizing employees’ unique abilities
T: Transportation — unnecessary movement of material
I: Inventory — excess stock
M: Motion — unnecessary motion of people or equipment
E: Excessive processing — processing that uses more time, effort or investment than needed
Dirkx said transportation is one of the main forms of waste he sees at composting facilities. “Many composting companies accept material at the front of their yards,” he explained. “And, as it’s processed, the material moves toward the back of the facility until it is ready to sell. It is then moved back up to the front of the facility. Tweaking the layout of an operation so material is processed toward the front of the yard and asking customers to dump in the back can help reduce the number of times material has to be handled.”
Visual management
According to Dirkx, an effective way to control waste is by setting established visual cues for employees. “Just like the lines in a parking lot gives drivers a visual reference, composting companies should establish ways to let their team know what’s expected of them using visuals and standardized operating procedures. It is also helpful to remove any unnecessary items on the jobsite,” he added.
Lean manufacturing example
Adopting lean manufacturing principles have helped many manufacturers over the years, including Vermeer Corporation. Since first implementing lean manufacturing in 1997, Vermeer has held more than 2,700 continuous improvement events, reduced the number of forklifts used at its facility by 33 percent and had a 64 percent improvement in production per worker.
“Before 1997, a certain machine took on average 52 days and required around 80 hours of direct labor to produce from raw steel to the finished machine,” Dirkx said. “With the help of lean manufacturing principles, the same machine on the same line now takes around two and a half days. This example just shows what’s possible with lean manufacturing.”
To learn more about lean manufacturing, Dirkx encourages composting companies to contact their local Vermeer dealer or talk to their nearest Vermeer Recycling and Forestry specialist.
This article contains third-party observations, advice or experiences that do not necessarily reflect the opinions of Vermeer Corporation, its affiliates or its dealers. Testimonials and/or endorsements by contractors in specific circumstances may not be representative of normal circumstances experienced by all customers.
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