How Much of Your Budget is Spent on Waste and not Education?

How much of your district budget is being spent on waste? You will never know until you start measuring the waste in your organization.  Chances are, however, that 5% to 10% of your budget is being spent on 7 possible sources of waste.  Lean, discussed in my last blog post, achieves improvement on costs and performance through the elimination of waste.  Waste can be found in 7 different sources: inventory, motion, overprocessing, overproduction, rework, transportation, and waiting.  Educational waste can also include the unused or undeveloped intellect of students and even staff.

Each one of these sources of waste, if present, ultimately impacts that amount of money spent on operations.  Wasted motion, due to lack of training, lack of standards or the wrong methods, can make a 25% difference in the productivity of a custodian.  Untracked waste in food service can make the difference between profit, break even or a loss in food service.  Excess absenteeism can add hundreds of thousands to millions of dollars to labor costs and reduce the quality of services and education. Waste removal and reduction will not only give you more funds to allocate to education but also help you resolve those longstanding problems that create their own set of consequences.

Waste is the enemy.  We can help you identify and eliminate it.

 

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