Overproduction
What is the most significant source of waste?
Overproduction
Why do companies aim to reduce inventory waste?
Saves space, reduces costs, and improves efficiency
What is a Kanban?
A visual system/trigger for managing workflow
How does a pull system help prevent overproduction?
It only produces when there is actual demand.
What does FIFO stand for in inventory management?
First in, First out
Why does reducing batch sizes help Lean Production?
Reduces wait time and improves flow
Why does overproduction lead to inefficient use of labor and equipment?
workers and machines operate beyond necessary demand, leading to overtime costs, excessive wear on equipment, and unnecessary energy consumption
What is the primary problem with large batch production when it comes to responding to customer needs?
Large batches reduce flexibility, making it difficult to quickly adjust to customer demand leading to delays, and excess inventory
What is the role of the pacemaker process in a lean system?
The pacemaker process sets the production pace for upstream processes, ensuring a steady workflow.
What is the danger of overproduction when considering defects in a product?
Defects remain hidden in excess inventory, making it harder to detect and correct quality issues early in the process
Give an example of Non-perishable inventory waste
Ex. Overstocking electronics that become outdated. Fashion and apparel that become out of style.
What is Takt Time? And why is it important?
Available production time/Customer demand.
Gives reference as to how fast you should be producing
Why does overproduction lead to higher costs even though producing more might reduce the per-unit cost?
While per-unit cost may decrease, excess production increases storage costs, requires more handling, leads to outdated products, and ties up cash
Explain how a "supermarket system" helps prevent inventory waste
A supermarket system ensures that only the amount of inventory withdrawn by the customer is restocked, preventing overproduction. Ex. Auto dealerships replenish cars based on customer sales rather than overstocking their lots
What is EPEx?
Describes how frequently a process changes over to produce all part variations