Home > Community> The Lean Post> Inventory Waste: The "Hidden Killer" in Manufacturing

Inventory Waste: The "Hidden Killer" in Manufacturing

by Andrew Quibell
April 13, 2016

Inventory Waste: The "Hidden Killer" in Manufacturing

by Andrew Quibell
April 13, 2016 | Comments (3)

In my last post I talked about what I see as the four areas in manufacturing where waste can be found: Conveyance, Inventory, Process, and Inspection. When I tell people about this, their first question is almost always the same: “So where do we start?” I say Inventory, and here’s why.

The one-word answer is money. Cash flow in any business is critical so it’s important not to tie it up! If you’re not doing everything right, Inventory has a tendency to quickly absorb cash flow - and it goes without saying that that’s never a good thing. Even worse, it can hide inefficiencies in the other three areas of waste within manufacturing. See my sketch for more details on waste in Inventory and see if there's an opportunity to eliminate Inventory waste.

Once you've reviewed the sketch, I encourage you to check out this animated video I made to go along with it. It’s something I hope you can share with others to educate and convince them where your gemba walks and kaizen events should be focused first.

 

The views expressed in this post do not necessarily represent the views or policies of The Lean Enterprise Institute.
Keywords:  gemba,  manufacturing,  waste
Search Posts:
Gemba Walks - A Management Process for Leading the Organization
Dave LaHote, Dave Logozzo & Ernie Richardson
Kaizen Express
By Toshiko Narusawa and John Shook
Lean Solutions
By James P. Womack and Daniel T. Jones
Was this post... Click all that apply
HELPFUL INTERESTING INSPIRING ACCURATE
4 people say YES
10 people say YES
2 people say YES
4 people say YES
Related Posts
3 Comments | Post a Comment
Scott Thayer April 13, 2016

Please post a link to the video.



Reply »

Lory Moniz April 13, 2016

Dear Scott, Link is in the text above: here it is again (copy & paste in browser) http://sho.co/17BYB



Reply »

Ken Hunt April 13, 2016

Additionally something that is commonly missed is excess inventory in the non-factory areas (offices, etc.). This can be even more of a challenge as it is more "hidden" in these areas as opposed to manufacturing.

This is great awareness, thanks Andrew.

 



Reply »

Search Posts:
Gemba Walks - A Management Process for Leading the Organization
Dave LaHote, Dave Logozzo & Ernie Richardson
Kaizen Express
By Toshiko Narusawa and John Shook
Lean Solutions
By James P. Womack and Daniel T. Jones
The Hidden Waste in Inspection
Getting a Jump on Unplanned Changes
Mapping Out Your Gemba Walks
"Too Busy to Walk the Gemba"
"What Do I Need to Know?"