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Waste Management in Manufacturing Industry

Chapter – 2


“To undertake a literature review of Current research in the area of waste management in manufacturing industry”.



Before understanding of term waste management, we should know about types of manufacturing industries because every industry has different kind of wastes and they use different strategies for waste management. Types of manufacturing industries are

  • Metal Manufacturing
  • Food Production
  • Electronics, Computer and Transportation
  • Petroleum, Chemicals and Plastics
  • Clothing and Textile
  • Wood, Leather and Paper

Metal Manufacturing

Metals industry linked to heavy industry, while the outstanding segments are generally known as light industry or customer oriented industry. The production of metals consists of all kinds of iron, aluminium and steel manufacturing, as well as forging, engraving, coating and stamping.


Food Production

This addition of agriculture into manufacturing in current society shows how agriculture has changed over the centuries, reproducing more of a food production factory than an organic style farming of just a century ago. As the modest of all manufacturing industries, in includes all forms of food production. From the farm to the Kitchen all including that work as canning and purifying.

Electronics, Computer and Transportation

However, these fields are closely linked, they are generally known as different sectors of manufacturing. First of all, the products in this sector of the manufacturing industry use electric power, and all require a power source. Inside this sector of manufacturing, you will find all applications and microprocessors, semiconductors, chips and the audio-visual equipment. The transportation area is self-defining, as it contains all automobiles, trains and planes that do not fall under other sectors, like metalwork and chemical manufacturing.






Petroleum, Chemicals and Plastics

The process of turning chemicals, coal and crude oil into usable products, along with the making of soaps, resins, paints and pesticides and medicines belong to this sector of manufacturing. But rubber manufacturing is considered a part of plastic work. This sector of industry also includes the use of crude oil to make certain plastics, as well as gasoline and other chemicals.

Clothing and Textile

Companies that process raw wool, cotton and flax to make cloth are categorized under the clothing and textiles sector. This also applies to using wool and cloth to make clothes, outerwear, upholstery fabrics and bedding. The output of seamstresses and tailors belongs to the clothing and textile sector. Synthetics such as polyester fall under chemical manufacturing. The material, not the product, is at the centre of defining this sector.




Wood, Leather and Paper
Wood production includes all forms of manufacturing floors or housing, as well as sawing and laminating. Under leather industries, you’ll find all tanning and curing, but the creation of leather clothes falls belongs to clothing and textiles. The paper production process is typified by the cleansing of raw wood pulp into paper products of various kinds.


What is waste in manufacturing term?

Waste elimination is one of the most effective ways to increase the profitability of any business. Processes either add value or waste to the production of a good or service. The seven wastes originated in Japan, where waste is known as “Muda.” “The seven wastes” is a tool to further categorize “Muda” and was originally developed by Toyota’s Chief Engineer Taiichi Ohno as the core of the Toyota Production System, also known as Lean Manufacturing. To eliminate waste, it is important to understand exactly what waste is and where it exists. While products significantly differ between factories, the typical wastes found in manufacturing environments are quite similar. For each waste, there is a strategy to reduce or eliminate its effect on a company, thereby improving overall performance and qualityWe’ve all heard the phrase, “you can’t make something out of nothing.” Resources are necessary to accomplish anything great or small. However, problems arise from using resources unproductively, applying the wrong resources, failing to tap into necessary resources, or directing resources toward the wrong outputs. In each of these instances, waste is created. Costs are incurred, time is consumed, opportunities for value creation and growth are lost, and customers are left less than satisfied. Everything that is done in the company is divided into two groups: value-adding and waste. Generally speaking, value-adding is anything the customer pays for, and waste is anything the customer does not care about. All non-value added activities are belongs to waste.


Types of Wastes in Manufacturing Industry

  1. Overproduction

overproduction is to manufacture an item before it is actually required. Overproduction is highly costly to a manufacturing plant because it prohibits the smooth flow of materials and actually degrades quality and productivity. The Toyota Production System is also referred to as “Just in Time” (JIT) because every item is made just as it is needed. Overproduction manufacturing is referred to as “Just in Case.” This creates excessive lead times, results in high storage costs, and makes it difficult to detect defects. The simple solution to overproduction is turning off the tap; this requires a lot of courage because the problems that overproduction is hiding will be revealed. The concept is to schedule and produce only what can be immediately sold/shipped and improve machine changeover set-up capability.

  1. Waiting

Whenever goods are not moving or being processed, the waste of waiting occurs. Typically more than 99 percent of a product’s life in traditional batch-and-queue manufacture will be spent waiting to be processed. Much of a product’s lead time is tied up in waiting for the next operation; this is usually because material flow is poor, production runs are too long, and distances between work centers are too great. Goldratt (Theory of Constraints) has stated many times that one hour lost in a bottleneck process is one hour lost to the entire factory’s output, which can never be recovered. Linking processes together so that one feeds directly into the next can dramatically reduce waiting.

  1. Transporting

Transporting product between processes is a cost incursion which adds no value to the product. Excessive movement and handling cause damage and are an opportunity for quality to deteriorate. Material handlers must be used to transport the materials, resulting in another organizational cost that adds no customer value. Transportation can be difficult to reduce due to the perceived costs of moving equipment and processes closer together. Furthermore, it is often hard to determine which processes should be next to each other. Mapping product flows can make this easier to visualize.

  1. Inappropriate Processing

Often termed as “using a sledgehammer to crack a nut,” many organizations use expensive high precision equipment where simpler tools would be sufficient. This often results in poor plant layout because preceding or subsequent operations are located far apart. In addition, they encourage high asset utilization (over-production with minimal changeovers) in order to recover the high cost of this equipment. Toyota is famous for their use of low-cost

automation, combined with immaculately maintained, often older machines. Investing in smaller, more flexible equipment where possible; creating manufacturing cells; and combining steps will greatly reduce the waste of inappropriate processing.

  1. Unnecessary Inventory

Work in Progress (WIP) is a direct result of overproduction and waiting. Excess inventory tends to hide problems on the plant floor, which must be identified and resolved to improve operating performance. Excess inventory increases lead times, consumes productive floor space, delays the identification of problems, and inhibits communication. By achieving a seamless flow between work centres, many manufacturers have could improve customer service and slash inventories and their associated costs.

  1. Unnecessary / Excess Motion

This waste is related to ergonomics and is seen in all instances of bending, stretching, walking, lifting, and reaching. These are also health and safety issues, which in today’s litigious society are becoming more of a problem for organizations. Jobs with excessive motion should be analysed and redesigned for improvement with the involvement of plant personnel.

  1. Defects

Having a direct impact to the bottom line, quality defects resulting in rework or scrap are a tremendous cost to organizations. Associated costs include quarantining inventory, re-inspecting, rescheduling, and capacity loss. In many organizations, the total cost of defects is often a significant percentage of total manufacturing cost. Through employee involvement and Continuous Process Improvement (CPI), there is a huge opportunity to reduce defects at many facilities.

What is Waste Minimisation?


There are many ways to define waste minimization. In its broadest sense, waste minimization includes all practices (including waste prevention, reuse and recycling) that reduce the amount of waste entering the environment. More specifically, waste minimization in industry means practices, including, but not limited to:

• Product design modifications,

• Inventory management changes,

• Operational & maintenance procedure changes,

• Material changes,

• Equipment replacement or modifications,

• Reuse/recycling of waste materials.

3399 Waste in manufacturing process is characterised by those operations that consumes resources but do not add value to the demanded product. It consumes a lot of valuable energy and materials to produce and manufacture products and the resulting industrial waste can be hard to manage.  From small medium size to large public limited industries are trying to reduce waste and maximise their output in production and manufacturing by adopting various approaches of waste management. Waste management techniques helping a manufacturing industry to eliminate waste and helping companies to take control on their cost. Waste in manufacturing industries whether it’s a metal, plastic and food industry needs to be reduced and eliminate by applying waste management techniques. Waste in production decrease productivity and a non-value added to product. So now days, every manufacturing industry has Total waste management Program which is helping an industry to reduce and eliminate waste, hence increase in productivity and keep low cost over per unit of product. Industries applying various waste management strategies to eliminate waste during manufacturing.  Procedure and commodities waste can take large amount of a manufacturer´s profits, and old problems solving has failed to eliminate the cause of waste. Any new production engineer follow traditional methods to solve wastes related problems. Unfortunately, the traditional ways of solving problems, mostly in respects to investigate and minimizing waste, are not always the right ways. To fill the space left by old methods, Dupont has discovered a methodology that analytically identifies prospects to minimize the amount of waste that the manufacturer produce [1]. He does this by probing the waste production process in opposite, starting with the waste streams and working back to their cause, asking vital questions at each step as to how the waste may be minimized or eliminated overall. The procedure acts as a showing tool for possible waste reduction processes, decisive which processes are best and how they can be applied.

Reducing waste should be on any manufacturer’s list of significances. There are three main different types of waste produced by the manufacturing development. The initial type, process wastes, are those that outcomes from transforming lower value input materials into higher-value final products. After that, utility wastes, are those that result from the utility systems that are needed to power the manufacturing procedure. Another type outcomes from startups and shutdowns, maintenance and other spontaneous operations.

Process wastes are the very expensive out of the three types and therefore could be the first type that manufacturers attempt to minimize. By minimizing process wastes, manufacturers can decrease the cost of producing a certain product and reduce their asset in treating the wastes that manufacturing the product. Moreover, utility wastes, which can take the form of free steam, a wasteful boiler, or air and nitrogen leaks, has a direct association with how much process waste is generated.


Dupont Methodology

The Dupont methodology examines each waste stream in four cycle. The first is to list all of the waste stream’s apparatuses. Secondly, the parts triggering the concern could be identified, including dangerous air pollutants and toxic compounds. Third, the highest volume products must be identified. These materials often governor the investment and functioning costs associated with last treatment of the waste metal. The source of these waste metal within the process must be determined and then waste minimization options must be developed to reduce or eliminate them completely. The fourth step is to know about the next set of components that has an impact on the investment and operating costs of the end-treatment.

The goal of the methodology is to guide the manufacturer to a state of efficiency in which all of the materials that are added to or removed from a process are appreciated. In order to do this, the raw goods that the manufacturer uses, the products themselves, must accomplish the functions beforehand performed by input streams such as milling, grinding and drilling To accomplishing the result, the manufacturer needs to commence a process analysis. The first step in this process analysis is to list all metal products, all raw materials after finishing products and any intermediates. The second step of the process analysis is to enumerate all of the other materials created in the process, such as non-salable byproducts (waste), on a second list. Third, for each compound in the second list, the process engineer should ask, “how can we use a material from the first list to do the same work?” or “how can we change the process to eliminate the need for this material?” Finally, in considering the materials in the second list that result from producing non-salable products, the process engineer should ask, “how can we modify the chemistry or process to minimize or eliminate these wastes?” This method of analysis, when correctly used in collaboration with the application of fundamental engineering and chemical practices, can help in developing a technology plan for achieving a manufacturing state that generates the minimum amount of waste.

Dupont methodology is that it uses a minimum amount of time and money to define process improvements and to conduct starting point analysis. In addition, it uses existing process information to define process enhance opportunities and process characteristics.




Company’s strategies for the wastes and recycling

For small and medium size manufacturing industry for manufacturing products with increase materials it is likely to reduce waste production. When waste minimization has been introduced, innovative and commercially successful products are consumed as replacements. This term “waste management” is a great benefit for not only industry but also the environment.

Waste minimization never comes free of cost and investment is required. This investment is remunerated by savings but it is known fact that if a portion is processed for waste reduction then it is possible that other portion may get in to the excessive production of waste.

Government is putting forward incentives for waste reduction and focus on the benefits for environment over the adoption of strategies for waste reduction.

Following is mentioned the list for the waste reduction or minimization process:

  • Utilization of resources: waste reduction at individual and institutional level goes side by side with the proper utilization of raw materials.
  • Reuse of the Scrap Material: this is the process in which individual and industry reuse the waste material as much as possible it is produced. This keeps it from becoming a waste material.
  • Quality control improvement and process monitoring: this technique is to ensure that products produced are kept from rejection and this is increased by the inspection of frequency and monitoring point’s inspection.
  • Exchanging Waste: this is the technique in which the waste product, which comes out of a process, becomes a raw material for another process. This is another way for reducing waste.
  • Supplychain: to maintain and making deliveries for the raw  materials to be used with the manufacturing process, at the point of assembly with fewer packages and wrappings can save from the waste production.







Quality control for waste minimization

In a survey, Rao (2002) found that 77 percent of the surveyed companies

agreed or strongly agreed with the adopting of ISO 14001 system benefits

recycling. [4]

Recyclable materials can be treated and profited by companies in five different ways:

putting them in trash, stocking them somewhere in the facility, giving them to another

company without any purpose, recycling them in the company’s own facility, and

giving them to another company for recycling purposes. The first one is the worthless

one for both a company and a society. The second and third one can serve recycling

purposes only indirectly. The purpose is directly recycling in the fourth and fifth ones,

however. These last two are also the most adaptable ones to sustainable production


One of the significant findings of this study is that some affecting characteristics

of manufacturing companies may cause some aforementioned treatment options of

companies are more preferential than the others are. For both PWs and NPSWs,

these characteristics are QC ownership, using a SP for returns, employing an engineer,

being of a specific size, and operating in a certain industry. Another very interesting

finding of this study is whether or not collaborating with other companies when

dealing with those recyclable wastes is or is not related to a company’s treatment

options on them. Turkish companies usually give PWs and NPSWs to other companies

for recycling purposes. On the other hand, although those recyclable wastes are given

to another company for recycling purposes, they are mostly put in the trash by the

companies that have no QC, do not employ any engineer, are micro- and small-sized,

and operate in the furniture industry. Giving recyclable wastes to another company

without any purpose is the least preferred option among companies because

profitability from compensation for these wastes increasingly gains attentions among


 Prevention of waste

Our production and consumption lead to large quantities of waste. An important element in work on over production is therefore sustainable waste management. Sweden considers it necessary for the volume of waste to decrease if we are to come close to sustainable management of waste [5]. Manufacturer must already take account of a product’s environmental impact in a lifecycle perspective when it is manufactured. Design and material selection, as well as energy consumption in manufacturing and use must be taken into account. In addition, sustainable cycles can only be achieved if a greater proportion of waste can be reused and recycled. Which can saves both materials and energy, while also reducing the use of hazardous chemicals and environmental problems in waste management.

















Reduced landfilling of waste together with increased sustainable recycling of waste

Waste can be both a resource and an environmental problem. Sweden considers that waste management that works poorly involves considerable wastage of valuable material and can lead to environmental and health problems [3]. where waste management not work, this can lead to problems related to sanitation and health, as well as soil and water pollution. The goal as far as possible is to make use of the resources contained in waste. At the same time, it is important to reduce adverse effects in the form of emissions of methane gas from landfills and carbon dioxide from

combustion, as well as emissions of heavy metals and organic environmental pollutants. This primarily means that we must try to produce as little and as non‐hazardous waste as possible. Material recycling is prioritized over energy recycling for waste that nevertheless arises, where this is environmentally justified. The waste ultimately must be disposed of by landfilling. There are no obvious answers as to what method is preferable for all types of waste in choosing material recovery and incineration. Several analysts generally support material recovery that lets materials and nutrients enter a cycle. Sweden considers the waste hierarchy to represent a good starting point for achieving sustainable waste management.

An all‐embracing perspective on the area of waste is required to attain sustainable waste management. Various measures that reduce the volumes of waste and control waste streams according to the hierarchy for different methods of treatment are required. The key is to increase the material recovery of waste. Recycled raw material saves energy compared with the use of new raw material, in addition to which material recycling often leads to lower emissions than other methods of treatment. When producers start to recover material a valuable link also arises to environmentally oriented product development in order to improve the efficiency of manufacturing. Several measures have been taken to promote biological treatment, in part to reduce greenhouse gas emissions from landfills and be able to make use of the plant nutrients contained in food waste. The ban on landfilling organic waste and the targets for increased biological treatment of food waste and for waste from the food industry have been most effective.

The production of waste and its disposal through end-of-pipe means (e.g., land fill, incineration or off-site treatment) is an increasingly undesirable outcome for firms and their stakeholders.

Landfill disposal generates costs for the firm in transport and disposal fees. It also represents an opportunity cost owing to the loss of material that has potential reuse value. Waste reduction, rather than waste disposal, offers a range of benefits to a firm’s environmental and financial performance (King and Lenox, 2001).Reducing waste in processes or reusing waste as raw material can reduce costs for firms (Doonan et al., 2005).Simpson and Power(2005) have demonstrated that investments in resources that allow firms to improve their waste reduction performance have implications in terms of competitive advantage. There is widespread agreement in the waste management literature that waste management alternatives can be ranked in chronological order, although slightly different hierarchies have

been proposed (Table 2). These hierarchies set out the priorities for waste management. As early as Allen (1994),defined the five echelons of a waste hierarchy. First, disposable usually landfill or in conation is the least attractive waste management option. The second level is the recovery of value or energy from waste materials. This includes material recycling, composting and the recovery of energy from waste.

Third, reuse involves putting objects back into use so they do not enter the waste stream. Reduction is the main priority for sustainable waste management: the reduction or minimization of waste at the source. The final aim is the total elimination of waste by radical process changes (usually an unrealistic expectation). This hierarchy of action is commonly called“3R”(Reduction, Reuse, Recovery).Dan Azimi Jibrila et al. (2012)state that the 3R hierarchy is a strategic approach to solid waste management. 3R practices comprise different measures and skillful techniques to minimize the volume of discarded waste materials. The waste management hierarchy is the internationally accepted policy for waste management practice, and emphasizes reducing waste at the source(Schroeder and Robinson, 2010).As such, the 3R hierarchy can be regarded as a reference method for operating a waste management progress plan. In addition, conceptual frameworks for waste minimization have been developed. Hicks et al. (2004)present a generic functional model for modeling the material and flow of waste from both a physical and cumulative cost perspective. A three-step sequential approach is described by Museeet al. (2007): waste source identification and quantification, qualitative evaluation of waste causes, and finally, a feasible development of alternatives for waste minimization. Similarly, Darlington et al. (2009)propose a waste analysis methodology tailored to the specific requirements of food manufacturing, which consists of the following: waste inventory analysis to highlight and monitor the sources of waste throughout the production processes, cost and environmental impact analysis to perform a cost analysis and to prioritize the importance of cost management, and reduce recycle disposal analysis to formulate a detailed step-by-step solution for reducing, reusing, recycling and safe disposal of the waste. To support such a framework, Darlington et al. (2009) describe a set of tools for waste minimization: IDEF0(Integrated Definition method) representation, a physical flow  and an input (raw materials)/output (wastes) diagram through the various stages of manufacturing. Other researchers (Hoagland and Stenis, 2000; Maxime et al., 2006) produce a similar deliverable: input and output flows, flows of solid residues and of materials and energy. Many studies have developed optimization methods, but without doing a quantitative study of the impact of the 3R hierarchy or any other particular tool to minimize solid wastes in manufacturing. This is why, in this paper, the impact of the 3R hierarchy on a waste minimization program is precisely measured and compared with the “seven deadly wastes” of lean management.





Chapter 3


“To undertake literature review of current research area of the operations management strategies designed to eliminate waste in manufacturing.”



There are various operations management strategies which can help operations manager to reduce waste in production. Now days Lean tools are playing major role manufacturing industry to eliminate waste and increase productivity with respect to quality. Lean Production tools can help reduce the wastes of manufacturing companies. For the past few decades Lean Production has been considered a well-consolidated strategy for cutting down costs, especially costs related to production processes. Lean Production stems from the so-called Toyota Production System (TPS).According to Ohno (1988), former Executive Vice President at Toyota who can be considered the founder of TPS, these seven wastes are:


-Excessive inventory


-Unnecessary motion


-Waiting and delay

-Over processing.

If we take care of these seven wastes an industry can reduce its production costs and accelerate product lead time inside a plant layout overcome with waste reduction. Lean Production offers several tools to help companies reduce wastes. It is out of the scope of this paper to investigate in what ways these tools affect the wastes. The vital Lean Production tools are Value Stream Mapping (VSM) for identifying the wastes in plant layout.5S for setting in order and cleaning up workplaces, cellular manufacturing for grouping machines and workplaces [2].Single Minute Exchange of Die (SMED) for reducing machine set-ups and Total Productive Maintenance (TPM) for reducing failures of the machines and equipment. Lean Production seems also to have effects on the reduction of environmental impacts such as emissions into the air, water and soil, as well as efficiency of water and energy consumption. In fact, every time a Lean tool or principle is applied, there are also benefits concerning environmental management. However, it is not clear exactly what kind of relationship exists between a specific Lean tool and the environmental impacts and whether or not this relationship can be measured.

The next section will review the literature to assess the current knowledge on Lean and environmental management or green management. The five case studies are described in as well as the methodology and the theoretical findings derived from the literature review. The practical implications and limitations of this research with an agenda for further research.

The research is based on deep observation inside five European companies that manufacture motorcycle components and which are also committed to Lean and waste management [3]. Waste in the production processes of the five companies were observed and measured before and after the implementation of five Lean tools: Value Stream Mapping (VSM), 5S, cellular manufacturing, Single Minute Exchange of Die (SMED) and Total Productive Maintenance (TPM). Comparison of the before and after quantitative results reveals interesting and novel results which contribute to the research on the effects of Lean Production on waste impacts. In particular, VSM can be used to identify the waste impacts of production processes. Cellular manufacturing can lead to a decrease in electricity consumption, whereas TPM can help to reduce several impacts of the machines, such as oil leakage and emissions of dusts and chemical fumes into the atmosphere. By contrast, no significant improvement in waste impacts was measured after implementation of SMED. The result of this empirical research also revealed other interesting positive effects concerning electricity consumption in general as well as standardization of activities and worker behaviour. The originality of this research lies in observing and measuring the effects on environmental impacts of the implementation of five Lean tools, inviting further research toward a general model of Lean Production for the greening of production processes.

In a context in which companies aim to optimize their social and environmental responsibility, they can adopt and combine Lean and Green strategies. This paper offers a quantitative study of Lean/Green integration focused on waste reduction techniques in manufacturing processes. The literature confirms the convergence of the concepts of Lean Manufacturing and Green Management. Specifically, Waste Reduction Techniques are considered one of the main areas of the overlap between the Lean and Green paradigms. This offers interesting possibilities for future research on the development of quantitative studies on Waste Reduction Techniques, especially for a solid waste minimization program in manufacturing. Using the Design of Experiments tool, the present study measures the influence of different methods, derived from both the Lean and Green approaches, on solid waste management performance. Based on these results, a hierarchy of progress factors for a waste minimization program in manufacturing is outlined: the 3R Hierarchy must be preferred to a deadly waste (Muda) analysis and combining the 3R Hierarchy and the deadly wastes of Lean Management improves the performance of a waste minimization program in manufacturing. In addition, the use of a Lean/Green matrix da check-list that integrates Lean and Green best practices was shown to consistently increase the performance of a waste minimization plan and as a result, the impact on the waste reduction can be doubled. This work is of interest to practitioners because they can build upon this experience to implement a waste reduction program using a set of tools to monitor and measure the program’s achievements, which can ultimately lead to balanced performance improvement in terms of environmental, social and economic dimensions.

Lean Manufacturing focuses on the elimination of waste within the production system through continuous improvement and pro- cess changes to reduce non-value added activities (Womack et al., 1990). Cleaner production, on the other hand, introduced by UNEP (2005), is defined as a continuous implementation of an integrated preventive environmental strategy applied to products, processes and services to address the causes of pollution. This approach aims to prevent pollution at its very source, as opposed to the end-of-pipe solutions practiced in many industries (Rao and Holt, 2005).

Manufacturers can simultaneously adopt both Lean and Green strategies in order to create an environmental stance that is a driver for reduced costs and risks, increased revenue, and improved brand image. The pioneering work by Florida (1996) has already argued that the efforts of firms to improve manufacturing processes and increase productivity can create substantial opportunities for environmental improvement. Recent state-of-the-art types of ar- ticles by Martínez-Jurado and Moyano-Fuentes (2014) and Garza- Reyes (2015) confirm interest in a combined “Lean and Green” strategy. Acknowledging that the scope of application for a Lean/ Green approach is very often the supply chain or parts of it, Garza- Reyes (2015) argues that there is a shortage of Lean and Green research focused on the company level, and in particular, “on developing measurement methods or models for specific processes and industries”. The main argument supporting the idea of the virtual convergence between Lean and Green is that using Lean principles in environmental projects will help create a cooperative approach to continual improvement (Pojaseck, 2008). The objective of Lean is to generate a system that is efficient, well organized, and devoted to continuous improvement and the elimination of all forms of waste. There is great potential for benefits to a firm’s environmental management practice (Simpson and Power, 2005). Lean offers organizations a toolbox of methods that can be used to eliminate waste from business processes. Lean practitioners have traditionally focused on what they refer to as the “Seven Deadly Wastes”: defects, overproduction, waiting, transport, inventory, motion, and excessive processing.







The use KPI’s to determine the waste in production process


In theory and practice of management is well-known Lean approach about forms of

waste from production processes and the method VSM (Value Stream Map), one of the

most effective methods for determining the activities generating value within industrial

companies. It is also obvious concern of the specialists for performance measurement regardless of purview of the organizations. However, the correlation between indicators and the forms of waste that generate changes from the set points is rather nature practical and it depends on the talent and managerial skills of those directing production processes,through which it was has required to will create a system of performance indicators specific to manufacturing activity that to be a useful tool to quantify the losses and to determining ways to improve default losses.
















Use of performance indicators for determining the losses in production processes

Some manufacturing companies use performance indicator to get results about loss in production. performance measurement in companies like small and medium sizes is not done in a proper way. It is obvious that the existence of waste in production processes generate low performance. Low performance is not directly measured by indicators, being considered as the difference between our goals and the realized outcome. This has a major negative impact on the processes lead by managers with little experience. To eliminate this drawback, it is necessary both to establish the relationship between the measured indicators and forms of waste but also quantification of losses. 3399



















Chapter 4


To identify the key types of waste and issues effecting development of operations management strategies to eliminate waste in manufacturing industry.

Eight main steps to eliminate waste using operational management strategies in manufacturing industry should take:

Any company may already have a waste minimization plan or programme in place.

If  company is starting from scratch, it would help you move along step by step in developing and implementing a waste minimization plan for your facility. The steps are as follows:

Step 1: Get Management’s Commitment

Step 2: Select a Waste Minimization Working Team

Step 3: Conduct a Waste Audit

Step 4: Determine the True Costs of Waste

Step 5: Develop Waste Reduction Options

Step 6:  Assess the Scope of Savings & Rank Options

Step 7: Develop a Waste Minimization Plan

Step 8: Implement and Improve the Plan







Step 1: Get Management’s Commitment

To stay competitive, companies need to continually find new ways to improve efficiency and cut costs.

If you are the decision-maker of the company and would like to achieve the same benefits that other companies have reaped, then the first step, which is an essential prerequisite for success, is to give a clear and strong signal of the senior management’s commitment to support waste minimisation efforts.

If you are an environmental engineer or manager (or from any other departments), and believe that there are scope to reduce waste in  your facility, take this first step to propose a waste minimisation plan to your senior management to draw up and implement a waste minimisation plan. You need to collect data on the amount of waste generated by your company and the cost of disposing it and estimate the potential savings today and in the future. You should also find the most effective channel; to present your idea and proposal so that senior management has a chance to study and consider your idea and proposal.

When the senior management has made their decision, it is important to get a clear direction on appointment of the appropriate personnel to take charge of the project and the time frame for implementation.

Request your senior management to demonstrate its support and commitment as follows:

• Circulating  or  make  known  to  all  staff  a  policy  statement  on  waste minimization;

• Announcing the formation of a waste minimization team and give the team the authority and responsibility;

• Keeping staff informed of plan and the progress of the project

• Giving recognition as appropriate to the staff involved; and

• Showing interest and participating in key activities on waste minimization.

The policy statement, which conveys waste minimization plan objectives to employees, may include these main points:

• Reducing waste at source to eliminate waste is the main goal in research, process and product design, plant operations, and is as important to management as quality, safety, yield, and loss prevention.

• Reusing and recycling materials before disposing them as waste.

In the policy statement, you may also want to list certain motivations for waste minimization. These could be product quality improvement, cost reduction, and being an environmentally-responsible corporate citizen.

Following are some examples of policy statements. You may use them as the reference, or amend the language to suit your facility.

Examples of Policy Statements

1. [Your Company]’s policy is to reduce all waste to the minimum levels that are economically and technically feasible;

As both a responsible citizen and [Company] employee, each individual is responsible for reducing waste, and for complying fully with all waste reduction programme goals established by the company;

Employees are urged to come forth with suggestions for further reducing waste in their own work areas, and in any other areas which they may have ideas.

2. [Your Company] is committed to excellence and leadership in protecting the environment. In keeping with this policy, our objective is to reduce waste and emissions. We strive to minimize adverse impact on the air, water, and land, through excellence in waste reduction. By successfully reducing waste at its source, we can achieve cost savings, increase operational efficiencies, improve the quality of our products and services, and maintain a safe and healthy workplace for our employees. [Your Company] promotes environmentally-sound measures to reduce, reuse, and recycle waste.

Once management signs and dates the policy statement, display  it prominently and distribute it widely.

How a company first distribute the written policy to employees indicates its commitment. Posting it unexpectedly at work stations could send a negative message. We suggest that you call a special meeting to explain and distribute copies of your company’s policy, and ask employees for their ideas. This will help to send a positive signal to employees and get them involved and treat the matter seriously.



Step 2: Select a Waste Minimisation Working Team

Following the policy decision, a waste minimisation working team need to be formed to make things happen.

A company needs to select a waste minimisation working team, identify a competent team leader, and give the leader sufficient authority to lead the team. The team leader would best possess the following attributes:

• Familiar with the facility, its production processes, and its              waste management operations

• Familiar with quality control requirements

• Good rapport with management and employees

• Familiar with waste reduction principles and techniques

• Familiar with new production and waste management technology

The size of the team can vary depending on the complexity of the company’s operation. Preferably, the members would be well represented in terms of experience, knowledge, and perception of the issues, and from different sections / departments / divisions  and levels such as :

• Management

• Engineering / design

• Production

• Maintenance

• Purchasing

• Accounting / Finance

• Shipping / Receiving

It may be useful for the team to involve the company’s suppliers in  the planning process. Suppliers would have the technical knowledge about the raw materials, or equipment, or packaging that they are supplying. They may also have experience with their other customers on similar projects and can share information and success stories. For the same reason, it would be helpful to involve your company’s customers in the process.

Step 3: Conduct a Waste Audit

Solid waste in a manufacturing facility is usually generated in three areas:

• manufacturing (wastage of raw material and process waste);

• shipping and receiving (packaging waste);

• office operations (paper and print cartridge waste, etc.);

Understanding the waste generated in these areas is an essential step and can be done through conducting a waste audit.

The objective of a waste audit is to profile the waste streams by finding out information on the

• types of waste,

• quantity of each waste stream,

• how they are generated,

• why they are generated,

• where they are being generated, and

• how they are managed after being generated.

Doing this alone will not reduce waste, but it helps to identify areas of wastage and problems, and discover opportunities to reduce them in the later stage of planning.

You can obtain information on waste materials through:

• getting material purchasing records, waste disposal invoices, records of waste and rejects produced at generation points in daily operations;

• walking through different operational processing areas;

• surveying the waste in the refuse bins; and

• talking to the relevant employees.

Create a checklist for all waste streams and use a waste assessment sheet for each waste stream identified from all activities / processes / operations. An example of a waste stream assessment sheet is as follows:

Date: Process / Operation / Activity:

Profile of waste:

Type of Waste:

Point of origin:


Physical & chemical properties:

Rate of generation (i.e. kg/unit of product):

Potential  for  contamination  (e.g. mixed with other types of waste):

When conducting the waste audit, an estimate should be made of the resources required to carry out the audit. Your resources requirements may include the following:

• adequate time for assigned people to carry out audit tasks to ensure the quality of your audit data;

• storage containers to isolate, move, and sort waste and recyclables;

• different-colour bags, tags, or labelled containers to identify waste from various generation points;

• space for sorting and storing waste during the audit;

• a weighing scale.

The suggested waste audit approach is not  intended to provide a highly accurate and detailed measurement of all waste, but to identify the major waste and to provide a starting point for your waste diversion initiatives.

If the operation of your company is a highly complex one that needs experienced personnel to conduct the audit, or the resources are limited in your company, you may want to consider hiring consultants specialising in waste audits.

Special attention needs to be given to find out why a waste is generated. It can help to discover the root cause of wastage and identify solutions.

Step 4: Determine the True Costs of Waste

Having identified the waste streams and filled in the related information in the waste assessment sheets, you would have the basic information on the waste produced by your company. The next step is to determine the true cost of dealing with the waste streams from various processes, operations, or activities. This would help to provide a clearer picture of how much it costs the company when these waste are produced and then disposed of. You can then identify the high cost waste streams, prioritise efforts, and track the overall success of the waste minimisation programmes.

There are two broad areas of costs that should be considered. From the analysis of costs below, it can be seen that the true cost of waste is more than what meets the eyes.

Disposal Costs

Hauling Charge is the cost you pay a contractor for collecting and

transporting waste to an incineration plant or the landfill.

Container Rental Fee is the monthly fee for having a compactor, or an

open top container, or refuse bins on-site.

Disposal Tipping Fee is the charge for the amount of waste (tonnage)

being disposed of at an incinerator or the landfill.

These three elements of the disposal costs may not apply in some cases. Some waste collectors may charge a company a flat fee to include all the three elements of the costs depending on the contract agreed upon.

Associated Costs

The true costs of producing waste goes beyond the disposal cost. In its simplest form, we need to add the cost of the raw material in the waste to the cost of disposal. Where more than one material is in the waste, this calculation should be made for each component.

In reality, any business process involves many resources on top of the raw materials used. Hence, when we calculate the true cost of a waste, we need to assign all the associated costs contributing to the true cost of producing a waste, and they can include the following:

  • Purchasing cost of raw materials
  • the raw material that exceeds the shelf-life;
  • the raw material lost / leakage before it gets to the production process;
  • the raw material in the rejects.

Manpower costs

  • operating labour and supervision
  • storage,
  • internal transport,
  • managing waste-disposal contractors;

Although businesses have many elements in common, it is impossible to cover all aspects of costs associated with individual waste. The true costs should be examined for each and every waste.

Experience has shown that many businesses spend around 4% of their turnover generating waste.  The true cost of waste can be between 5 and 20 times the cost of their disposal. And in an average company, it could be around ten times the cost of disposal.

Step 5: Develop Waste Reduction Options

After conducting the waste audit and determining the true costs of waste, the next step is to identify the opportunities to improve efficiency, reduce waste and cut down costs.


Your objective at this step is to generate a comprehensive set of waste minimization options. Consider every waste stream as a reduction opportunity until proven otherwise. Most of the time, an opportunity exists if a waste stream exists.

Prioritizing waste streams

If your company has quite a few waste streams, you may want to prioritise them. One-way of ranking them is in terms of their true cost. Generally, we can target at the higher cost waste streams as they may represent higher cost of raw materials, higher process inefficiency, and thus more potential for cost savings. Other factors, such as whether the high waste cost can easily be reduced, and the payback period for high investment measures to reduce waste, can also play a part. These factors will be considered at the ranking of options stage later.

Tapping on all resources

Identifying potential options relies both on the expertise and creativity of the team members. Much of the information needed can come from their education and on-the-job experience. The team should tap on all resources available and involve as many employees as practically possible. Consulting staff from different departments, such as purchasing officers, engineers, machine operators and maintenance technicians, would be useful too. These people know their working areas best and may be able to suggest good options for waste reduction. Your suppliers / vendors and customers are also valuable resources.

Consider all options

At this stage of developing options, the working team should list all the possible opportunities of reducing waste within the facility. The team should not consider in detail the technical or economic aspects of any particular option. This will be done at the next step. The list may include several options for each waste stream or process.

General areas for waste reduction

In general, we could identify options to reduce waste in three areas: manufacturing (raw material and process waste), receiving/shipping (packaging waste) and office (paper, cartridge etc. general office waste). The waste minimisation techniques or practices listed below may help inspire you to generate ideas on options to reduce waste at your facility.

(1) Reduction of Manufacturing Waste

(a) Inventory management

Proper control over raw materials, intermediate products, final products, and the associated waste streams is an important waste reduction technique. Experiences show that better inventory control and material handling could lead to reduction of raw material waste. You may look for waste reduction options by observing some general guidelines described below.

Inventory control:

• purchase only the amount of raw materials needed for a production run or a set period of time;

• purchase the material in the proper amount and the proper size container;

• approach the suppliers to see if they can take back the excess materials;

• develop review procedures for all materials purchased, to minimise the chances of storing them beyond their shelf-life period.

Material handling:

• Ensure that raw materials reach the production process without loss through contamination, spills, and leaks;

• Ensure that the material is efficiently handled and used in the production process and does not become waste;

• Handle waste or rejects like a product. Allowing a recyclable or clean waste material to be contaminated can reduce or eliminate its recovery potential;

• Encourage employees to separate waste that can be recycled from those that have to be sent for incineration or landfill. Label and place recycling and trash bins in strategic locations of production process areas.

(b) Production process modification

Improving the efficiency of a production process can significantly reduce process waste generation. It can be achieved or enhanced through modification in operational and maintenance procedures, material change and equipment.

Operational and maintenance procedures:

• Look for opportunities to further improve efficiency of operational process procedures;

• Document fully improved operating procedures, and make them part of the regular employee training programme;

• Implement a strict maintenance programme, which stresses preventive and corrective maintenance, to reduce waste generation caused by equipment failure. Such a programme can help spot potential sources of release and correct a problem before any material is lost;

• Maintain a strict schedule on all maintenance activities under the programme and keep accurate records.

Material change:

• Consider material change that will lead to the elimination of one step of the process. This could lead to elimination, or reduction of raw material used and waste generated, and improve the process efficiency;

• Consider material change that may have an impact on overall waste reduction;

• Use a less hazardous material in a production process where possible;

• Look for ways to avoid contamination of a waste so that it can be put back into the originating process as a substitute for a raw material;

• Look for ways to use a waste as a raw material in another process;

Process equipment modification:

• Modify existing or install more efficient process equipment to take advantage of better production technologies: New or updated equipment can usually process materials more efficiently, reduce the amount of raw material used, and cut down the number of off-specification products or rejects. This will reduce waste and costs.

In many cases, improved operational procedures and process equipment modifications are used together to improve efficiency, and reduce costs and waste.

(2) Reduction of Packaging Waste

The packaging materials usually include cardboard, plastics, and drums. Your packaging waste will be either from your suppliers, who deliver the materials you need for your production, or in the form of packaging materials you use to pack and ship your products to your customers.

Using packaging materials more than necessary to pack and ship your products costs you more in purchasing, materials handling, and shipping. This generates more packaging waste at your customers’ end.

If your suppliers use packaging materials more than necessary to supply you the goods, or use single-use packaging, it generates more waste at your facility, costs you more time to handle, and incurs more disposal cost to you if the packaging is not recyclable.

Many companies’ experiences have shown that the easiest area to begin waste reduction is most likely in the packaging area. Thus, in waste reduction, packaging waste is often referred to as “low hanging fruit”.

So look into the ways to modify the design or change the material of packaging that can:

• improve packing / shipping efficiency,

• reduce the use of packing materials, and / or

• allow reusable or recyclable packaging.

Work with your suppliers and customers for opportunities to reuse and / or recycle packaging materials.

3) Reduction of Office Waste

In a typical office, usually half of the total waste is paper-based. Paper is therefore a major purchasing and disposal cost to the average office. Yet it is a cost that can be brought down easily through reduction, reuse and recycling. The following suggested practical options could be considered to reduce paper waste in an office:


• Make it a company policy that all printing, photocopying and publications are produced in double-sided format where possible.

• Put reminder posters near printers and photocopiers.

• Cancel subscriptions of unwanted publications to reduce paper waste.

• Avoid  overproduction  of  marketing  and  publicity  material  by  reviewing distribution lists and regularly updating databases

• Use electronic communication where possible to reduce printing and faxing. Ensure that your staff is comfortable with new technology and provide training where necessary. Encourage them not to print out e-mails unless absolutely necessary.

• Eliminate the use of fax cover sheet where possible.

• Ensure  fax  machines  are  set  so  that  they  do  not  produce  unwanted headers or report sheets.

• Reduce confidential waste costs by giving clear instructions to staff as to which material is strictly confidential, and which is general paper waste.

• Use single-spacing for report or memo writing.

• Set narrower margins for drafts.

• Change margins to avoid the last page of your report with little text.

• Edit and proof-read carefully on the computer before printing.

• Share newspapers / magazines.  Reuse

• Collect all paper that has been printed on one side and re-use it for printing in draft or for scrap message pads.

• Re-use envelopes wherever possible, especially for sending information internally.

• Reuse paper file folders.


• Set up a waste paper collection system and send waste paper for recycling. Place paper recycling bins in all office areas. A good guide is one bin between six staff members, and one next to each photocopier and printer. Use paper ream lids as additional staff desk top collection trays.

• Ensure that cleaning staff are in support of the recycling scheme and that emptying the recycling bins is part of their contracted work.

• Promote the scheme to staff by putting up posters around the offices, and on bins explaining the types of paper that can be recycled.

• Provide staff with on-going feedback about the scheme, including figures on the amount of paper collected. Suggest making a donation to charity or planting a tree when targets are met.

Use recycled paper

Paper is a natural resource that can be recycled up to about five times. This substantially reduces the impact on the environment. By using recycled paper, you can help boost the market for recycled products. This will in turn support the recycling industry and reduce unnecessary use of virgin materials.

Today the quality of paper containing recycled fibre (e.g. 51% recycled fibre) has improved and is comparable with virgin paper.  Where possible, you may consider purchasing and using recycled office paper.

Reduction of other office waste

• Reuse paper clips, rubber bands

• Collect print cartridges for recycling. Some local recycling companies can pick up and buy back the used cartridges from you, depending on the quantity and model of the cartridges, and whether they can recover transportation cost.

• Purchase re-manufactured print cartridges from cartridge recycling companies. The costs are much lower, and you could look for the companies that can provide you warranty on the re-manufactured cartridges.

Step 6: Assess the Scope of Savings and Rank Options

Having generated a number of options to solve a waste minimisation problem, and a range of options for various waste streams, the next step is to assess their feasibility. It is also to assess the scope of savings of options, and rank and decide the options that can be implemented.

(a) Technical Assessment

Technical assessment is to determine whether a proposed option will work, and whether there are any facility constraints or product requirements which will make it technically unwise to implement. The completed technical assessment should be reviewed by all affected sections / departments / divisions of the company.

During the screening procedure to assess the options, the following questions can be asked by the team to facilitate the assessment:

• Does the proposed option of equipment / technology change have a good track record in the market? If not, is there convincing evidence that the option will work as required?

• Is the option compatible with the current manufacturing process;

• Does the change maintain product quality requirements;

• Does the change meet shipping / packing criteria to protect the products from damaging;

• Is this option appropriate to the problem (e.g. installing automatic controls where a simple change to operating procedures would be just as good)?

• Who can implement this? (i.e. Is external help needed or can it be done in- house?)

• When can it be implemented? Some solutions may take longer than others to come to fruition.

Any options that are deemed to be technically feasible now require economic assessment.

(b) Economic Assessment

An  economic  assessment  of  a  potential  solution  to  a  waste  minimisation problem includes:

• one-off cost of implementation (i.e. capital investment, costs of design, testing and implementation);

• on-going cost of operating or maintaining the solution (i.e. running costs, maintenance costs);

• savings  from  the  associated  costs  (i.e.  raw  material  cost  and  other relevant costs listed in step 4) and disposal costs;

In many  cases  a  simple  payback  calculation  is  sufficient  to  assess  the economic feasibility of an option or to identify an optimum option.

Calculating payback

The payback can be calculated by dividing the total one-off cost of the project by the net saving of the project (the difference between savings and operating & maintenance costs). This gives a payback figure in years.

In some cases, more in-depth assessment methods may be required. These could include undiscounted and discounted financial analysis. The waste minimization working team could approach the company accountant if there are any doubts about calculating cost and benefit.

There is also a UK guide available which can be found at this website ( called “Investing to Increase Profits and Reduce Waste”. It contains detailed examples of financial appraisal.

(c) Other Considerations

Other factors that could be considered include:

• How much waste could be reduced through the change?

• Is the option easy to implement?

• Does the option ensure the lowest environmental burden or impact compared with other options (e.g. an option that reduces or eliminates waste is better than a recycle route identified for the waste)?

• Does the option ensure that the change will not create problems in other environmental areas (e.g. the decrease of solid waste does not increase liquid waste or hazardous waste)?

The overall assessment based on the technical and economic assessments, and considerations of the factors listed above should lead to the final ranking of the most reasonable options for reduction of waste streams.

Step 7: Develop a Waste Minimization Plan

What to be Included in a Waste Minimization Plan

When the tasks outlined in the previous steps are completed, you can start to develop and write a waste minimization plan for your company including:

• Targeted waste streams for reduction;

• Proposed options to minimize the waste and a description for each option;

• Estimated costs involved;

• Estimated payback period and net savings;

• Estimated volume of waste reduction (i.e. kg) for each waste stream;

• Implementation schedule of the options (steps or phases and timing for implementation);

• Implementation requirements (such as tasks and personnel assignments),

• Training of personnel involved,

• Management requirements,

• Measurable, performance goals

• Target dates for completion of goals

Considerations for Scheduling the Implementation:

Packaging usually provides the easiest reduction opportunities and thus the greatest potential for savings. So you may wish to schedule the easy options first.

Some options, which do not involve equipment change, are inexpensive and quick to implement. Thus, you could schedule such options like operation procedural changes or material changes for implementation as soon as possible.

Also, the options that have shorter payback period and produce greater savings can be scheduled for implementation early.

In waste minimization plans that call for equipment changes, it’s essentially the same as any other capital improvement project. The phases of the project include planning, design, procurement, construction or installation, and you may need to schedule them for implementation at a later stage when resources are available and the team can cope.

Establishment of Goals & Measuring Indicators

In order to measure the success of the waste minimization plan, specific performance goals need to be established and expressed in numeric terms. To measure waste reduction, it would be more meaningful to measure it in terms of actual waste reduction in tones, or kilograms of waste generated per standard unit of production. The following are some useful measurements for setting the waste and cost reduction goals:

• Ratio of  waste generated to production rate, before and after implementation of the       option;

• *Ratio of raw materials consumed to production rate, before and after implementation (an indirect measure of waste reduction);

• Savings on raw materials costs and waste disposal costs;

• Changes in utilities and maintenance costs;

• Changes in manpower and other associated costs;

• Changes in production capacity and product quality;

• The  program’s  actual  costs  and  savings  compared  with  the  initial              programme estimates;

Obtaining good quality data for waste stream volume, flow, and composition can be costly and time consuming. For this reason, in some instances, expressing waste reduction indirectly in terms of the “ratio of input materials

consumption to production rate” may be more practical. These data are easier to obtain although the measure is not direct.

If the establishment of numeric performance goals is not practical, include a clearly stated list of actions designed to lead to the establishment of numeric goals as soon as possible in your waste minimisation plan.

When using suggested measurements to set the waste reduction goals, the team need to try to set the goals that are:

• Understandable

• Acceptable to those who will work to achieve them;

• Flexible to adapt to changing requirements;

• Measurable over time;

• Suitable to the overall corporate goals; and

• Achievable with a practicable level of effort.

Step 8: Implement and Improve the Plan

When the waste minimization plan is firmed up, the implementation is the key. At this stage, several important actions are needed to ensure success.

Firstly, the team should be clear about the goals and objectives of the plan. Assign clear responsibility and authority to appropriate personnel in all administrative, operating and maintenance areas. Make the right resources available, and ensure that the personnel take implementation actions per schedule.

At the same time, the team should develop a waste minimization awareness program to get the key messages across to all employees and gain their support. The following measures could be used for creating awareness:

• Launch the waste minimization plan by the CEO or Managing Director of the company;

• Display the plan and the implementation schedule with explanation of waste reduction goals in prominent locations;

• Organize waste minimization educational  talks  for  staff  in  training sessions;

• Put up educational posters in strategic locations;

• Prepare waste minimization tips for individuals to act and make them available to staff through emailing and notice board;

• Share and update waste reduction results periodically with all employees;

To ensure a sustainable programmed, the team should:

• make all implemented options or measures a functioning part of a company’s standard operating procedures. Include product development, operational procedures, and training;

• make on-going improvements. The team need to monitor waste reduction performance against the goals established and conduct annual reviews to compare the current performance with the pervious year. During the process, additional waste reduction opportunities might arise. More action might be needed or different methods might become available.

So you need to:

• make changes to the planned actions and adjust operating procedures,

• incorporate new options or methods,

• establish new priorities for action, and

• set reviewed waste reduction goals, ideally upwards.

By following the steps in this guidebook, and using the resource information listed in References section, it is hoped that your company can  achieve sizable cost savings and waste reductions, and contribute to solving Singapore’s waste disposal problem.






Chapter 5


To make appropriate recommendations based in 2 to 4 above for the management of the

elimination of waste in manufacturing and to build a model to guide decision making and choice in this field.























































































































































Chapter 6


To conclude and recommend further research.

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