Waste Management
9
WASTE MANAGEMENT
CHAPTER OUTLINE
9.1 Introduction and Meaning 9.2 Reasons for Generation and Accumulation of Obsolete, Surplus and Scrap Items 9.3 9.4 • •
Identification and Control of Waste Disposal of Scrap Exercises Skill Development
9.1
INTRODUCTION AND MEANING
The industrial waste and scrap consists of spoiled raw-materials, rejected components, defective parts, waste from production departments etc. involves some commercial values. They should be disposed of periodically and proper credit of the amount should be taken in the books of accounts. Hence, waste management places an important role in managing operations. Wastes can be categorised into obsolete, surplus and scrap items. 1. Obsolete items: These are those materials and equipments which are not damaged and which have economic worth but which are no longer useful for the Company’s operation owing to many reason such as, changes in product line, process, materials, and so on. 2. Surplus items: These are those materials and equipments which have no immediate use but have accumulated due to faulty planning, forecasting and purchasing. However, they have a usage value in future. 3. Scrap: It is defined as process wastage, such as, turnings, borings, sprues and flashes. They may have an end-use within the plant having commercial values. Hence, should be disposed of periodically. 9.2 REASONS FOR GENERATION AND ACCUMULATION OF OBSOLETE, SURPLUS AND SCRAP ITEMS
Following are the reasons for the generation and accumulation of obsolete, surplus and scrap items: 1. Changes in product design: This may lead to some items getting invalid so far as the final product is concerned. Hence, the entire stock of such items as surplus obsolete.
227
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PRODUCTION AND OPERATIONS MANAGEMENT
2. Rationalization: Sometimes raw materials are renationalized so as to minimise variety and simplify procurement. The rationalization process renders some items as surplus or obsolete. 3. Cannibalization: When
WASTE MANAGEMENT
CHAPTER OUTLINE
9.1 Introduction and Meaning 9.2 Reasons for Generation and Accumulation of Obsolete, Surplus and Scrap Items 9.3 9.4 • •
Identification and Control of Waste Disposal of Scrap Exercises Skill Development
9.1
INTRODUCTION AND MEANING
The industrial waste and scrap consists of spoiled raw-materials, rejected components, defective parts, waste from production departments etc. involves some commercial values. They should be disposed of periodically and proper credit of the amount should be taken in the books of accounts. Hence, waste management places an important role in managing operations. Wastes can be categorised into obsolete, surplus and scrap items. 1. Obsolete items: These are those materials and equipments which are not damaged and which have economic worth but which are no longer useful for the Company’s operation owing to many reason such as, changes in product line, process, materials, and so on. 2. Surplus items: These are those materials and equipments which have no immediate use but have accumulated due to faulty planning, forecasting and purchasing. However, they have a usage value in future. 3. Scrap: It is defined as process wastage, such as, turnings, borings, sprues and flashes. They may have an end-use within the plant having commercial values. Hence, should be disposed of periodically. 9.2 REASONS FOR GENERATION AND ACCUMULATION OF OBSOLETE, SURPLUS AND SCRAP ITEMS
Following are the reasons for the generation and accumulation of obsolete, surplus and scrap items: 1. Changes in product design: This may lead to some items getting invalid so far as the final product is concerned. Hence, the entire stock of such items as surplus obsolete.
227
&
PRODUCTION AND OPERATIONS MANAGEMENT
2. Rationalization: Sometimes raw materials are renationalized so as to minimise variety and simplify procurement. The rationalization process renders some items as surplus or obsolete. 3. Cannibalization: When