A
Th e
Component Manufacturing dverti$er
June 2017 #10215 Page #48
Adverti$er
Don’t Forget! You Saw it in the
Ben Hershey, President, Coach, & Mentor 4Ward Consulting Group, LLC
Open Your Eyes to Overproduction Part 5 in our TIMWOODS Series
P
iles and piles of production all around you. No, I am not talking about inventory, I am talking about WIP, finished goods/staged jobs—Overproduction. Overproduction is making products in too great a quantity or before actually needed, leading to excessive inventory. Considered one of the worst wastes in some circles, overproduction can obscure all of the other problems within your processes. Walking through or working with many operations, this is a waste I see often. It can go unnoticed because focus can be on any number of other areas; or you think you are working to keep ahead of your customer, but are you really?
Coach/
TIM WOODS: Our “friend” and acronym for the eight wastes in Transportation, Turn Inventory, Motion, Waiting,to Over-the com Processing, Over-Production, Defects, professionals th and Skills.
4Ward Consulting Gr
Costs of the waste of Overproduction
Boots on the Gr
How many businesses have you walked into and, seeing items produced ahead of time, thought, “wow, they will never survive like that.” You don’t walk into a McDonald’s® and see the fry bin piled high with cooked French fries. That never happens because they focus on delivering hot fries every time and do not want to waste cost. So why would we be any different? Overproducing causes you to tie up your capital in stock, raw materials, WIP, and finished goods. Your cash is king and what you rely on running your business, big or small—if you are going to be competitive, offer that additional service or add automated equipment, don’t tie up cash paying charges to your bank for using your credit line. The other waste in the cost of overproduction is space, including the storage and movement of the material. And remember, it took someone in your operation to do this, unless you have a robot.
PHONE: 800-289-5627
Read/Subscribe online at www.componentadvertiser.com
FAX: 800-524-4982