hävikin

Hävikin is the Finnish term for waste or loss in production and supply chains. It refers to the portion of inputs that cannot be converted into saleable products due to defects, damage, spoilage, obsolescence, or other forms of waste. The concept is used across manufacturing, logistics, and inventory management to describe inefficiencies that raise costs and lower usable output.

Typical categories of hävikin include scrap and rework, spoilage of materials or products, obsolescence of inventory, packaging damage, and shrinkage from theft or misplacement. It can be measured as a percentage of material input, production output, or value-added, and is commonly reflected in cost accounting and performance metrics.

Causes range from process variability and quality-control gaps to poor forecasting, long lead times, and inadequate storage conditions. Hävikin can accumulate at inbound, in-process, or outbound stages, making its management a cross-functional concern.

Reduction strategies draw on lean manufacturing, Six Sigma, 5S, and total productive maintenance. Other important practices include strengthening supplier quality, improving forecasting and inventory control, applying FIFO, optimizing packaging, and leveraging automation or recycling to recover value from waste.

Significance: Lowering hävikin improves profitability, capital efficiency, and environmental sustainability. It is a common key performance indicator in modern manufacturing and is closely related to lean and circular economy objectives.