What the eight wastes cost per year
Eight plant-level inputs estimate the annual cost attributable to the eight Lean wastes, and show which three are worth tackling first.
The fields start with example values — replace them with your own.
One question per waste type. Where no measured data exists, a shop-floor estimate is enough — the order of magnitude matters, not the decimal.
We send the full ranking with amounts and the recommended first tool based on the data you submit.
The estimate above stays on your screen. If you ask, we review the inputs and write back what a half-day waste walk would show in the same areas.
The email opens in your own mail client with the details and input values you entered. You send it; the page forwards nothing.
How to read it
The figure is not lost profit, but the annual spend attributable to waste. Typically 20–40% of it can be removed in the first year, with little or no investment.
The ranking matters more than the absolute number. If the inputs are estimates, so is the total — but the order stays stable even with estimated data.
Inventory cost is derived from the stock values you enter, so raw material and finished goods must be given separately.
How it is calculated
Overproduction = finished goods stock × 22% carrying rate Inventory = raw material + WIP × 22% Defects = annual production cost × scrap rate Waiting = hours/week × 48 weeks × hourly cost Motion = people × minutes/shift ÷ 60 × 230 shifts × hourly cost Transport = hours/week × 48 weeks × hourly cost Overprocessing = hours/week × 48 weeks × hourly cost Unused talent = people × turnover × 150 retraining hours × hourly cost
Assumptions: 48 production weeks and 230 shifts per year, a 22% annual inventory carrying rate, 150 hours of retraining per leaver. Use fully loaded labour cost (gross pay + contributions + overhead), not net wages. The carrying rate covers tied-up capital, storage, obsolescence and insurance.
This tool is an estimate, not business advice and not an audited calculation. Actual savings depend on implementation maturity, management commitment and the nature of the process.
Just B · info@just-b-ltd.com · Lean overview · Maturity self-assessment · VSM preparation · A3 priority matrix