Overproduction Waste Becomes One Of The Seven Deadly Sins
Posted by: Daniel Stouffer / Category: Climate ChangeToyota has long been one of the leaders in the automobile world and long ago they identified seven separate areas of wasteful inefficiency, which can all be attributed to any manufacturing operation around the world today. These areas can really kill your profitability and expose your organization and its lack of planning in the areas of sustainability. Overproduction, transportation, waiting time, processing, inventory, motion and poor quality control must be addressed.
Make no mistake about it, because you cannot obviously see an area of waste it does not mean that it is not there. Overproduction waste is a glaring example and it’s true today that most companies pay only token lipservice to the concept of waste production. In fact, many organizations believe that overproduction is a necessary part of doing business.
Overproduction waste is simply the production of goods in quantities that are greater than demand. This position will be especially aggravated during an economic slowdown and will become very difficult to reverse. Remember that for an item to be “overproduced” it will have incurred additional elements of waste all the way down the lifecycle process, including administrative and financial loss.
In corporate culture, there is a feeling that if a production line is not utilized 100% of the time, or if particular employees are allowed to be idle at all, that this is more wasteful than letting them operate 24/7. This is a popular misconception and will at the least require a more educated assessment of equipment ROI.
Resources will be wasted needlessly wherever overproduction waste and excess is in existence. Whenever an item is produced with the intention of a sale, it has within its making an element of support, admin, backup, finance and other expense. If the item sits on the shelf, where is the profit?
A management system needs to reveal excesses as it tries to tackle overproduction waste, fundamentally by ensuring that no item can physically be produced unless the corresponding work order is actually in possession. Physically this means that the production equipment cannot engage unless it senses that a sale is in the system.
Environmental issues go alongside economic pressures, so that every company must consider how to become sustainable, as a consequence. While carbon emissions are one of the most important elements in the battle for sustainability, the entire concept must include waste reduction, less water usage and elimination of excess throughout the company.
Fully inclusive sustainability management tools could help to educate the company’s management and identify areas of inefficiency, such as overproduction waste. Such systems will almost always pay for themselves in short order.
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