Enhancing utilisation of main materials and waste reduction in production companies

Abstract

This thesis explores the implementation of Enterprise Resource Planning software and Lean methodology in managing material leftovers within a Bosnian company specialising in the production of printed and illuminated signs. The primary aim is to improve the handling and utilisation of leftovers to reduce waste and enhance resource efficiency. The research employs a combination of an upgraded ERP system and Lean tools to systematically address issues related to leftovers management. Key findings include a significant reduction in waste, enhanced utilisation of main materials, and improved cost management. Specifically, the time to search for leftovers has been reduced from 49 min to 2 min, resulting in annual savings of 339,19 hours and 5 092,08 €. Additionally, approximately 88 m² of industrial space has been saved. These savings illustrate the efficiency gains achieved. The study also anticipates a 20% or more increase in the utilisation of leftovers. It is concluded that integrating advanced ERP functionalities with Lean principles offers substantial benefits in streamlining leftovers management processes. This approach not only reduces operational costs but also contributes to more sustainable practices by reducing the need for new materials, minimising scrap disposal in landfills, and lowering associated CO₂ emissions. The research highlights the importance of continuous improvement and suggests future enhancements such as integrating ISO 14051 standards for more precise material flow cost accounting.