Managing Waste is done through a process called Velocity. Most often this involves Materials you use and keep in your inventory. However, you can also experience waste in Machines or Equipment, Manpower, or your actual workplace design.
Materials and Inventory that are not at the right place at the right time in the right amounts affect Velocity. When Inventory must travel long distances to get to the point of use or the user must wait for additional materials to round out the needs of the job, this delay and wait time is wasteful.
This could be as simple as an ink cartridge for a copier. What is the actual cost per Man Minute for a person to fetch a $20.00 ink cartridge that is in a cabinet 1,200 feet away round trip? If an average adult walks 400 feet per minute and every minute costs $1.80, you may add another $5.40 to the cartridge.
Now the cartridge becomes a $25.00 item. If you multiply every little task in a day by the non-value added space and time it takes to accomplish and you have a pretty nice little amount of money being thrown out the window. Now, some new jobs comes in and rather than looking at where you can be more efficient with the same people, you keep the waste in place, and hire another person which loses even more money.