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Component Manufacturing dverti$er
Adverti$er
Don’t Forget! You Saw it in the
March 2017 #10212 Page #50
Inventory Could be Costing You More Than You Think Ben Hershey, President, Coach, & Mentor 4Ward Consulting Group, LLC
Part 3 in our TIMWOODS Series
Our friend, TIM WOODS, has been busy in many LBM and component operations and, as we continue our series, he has been seen sweeping “Inventory” down several operations’ drains. Inventory is another waste word in our TIMWOODS acronym for the eight deadly wastes (Transportation, Inventory, Motion, Waiting, Over-Processing, Over-Production, Defects, and Skills). TIM WOODS keeps the focus on eliminating the time waste, thereby adding value in the process, eliminating process time, and reducing lead time. While no one wants inventory going down the drain, many of us have just that – we may not see some of the hidden forms of the waste (muda) of Inventory. So what is Inventory Waste?
What kind of inventory that we carry can be considered waste? •
Stock lumber, OSB, EWP products, glue-laminated products, steel, plates, etc.
•
WIP (work in progress) for millwork and component operations which is in excess of what’s needed to meet Just-in-Time production
•
Unnecessary inventory that accumulates before or after a process where continuous flow has not been achieved
•
Long change-over times
•
Excessive stock ordered for projects
•
Large batch sizes
•
Excessive designs which have not been reviewed/value engineered to maximize inventory
•
Lack of balance in work flow which forces inventory build-ups
•
Stagnant materials where associates are neglecting first in/first out inventory rotations
•
Finished goods which sit in your yard for long periods because you are not being paid.
The list could continue, but you should see the pattern – excess raw material, WIP, or finished goods causing longer lead times, these are wastes of Inventory.
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