

Inventory Waste: The "Hidden Killer" in Manufacturing
by Andrew QuibellIn 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.
Ernie Richardson
Mark Hamel
Dear Scott, Link is in the text above: here it is again (copy & paste in browser) http://sho.co/17BYB
Reply »
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 »
Thanks Andrew, this will help me convince a 'very cash rich business' owner that his safety blanket of inventory is not a good thing.
Paul.
Reply »
Ernie Richardson
Mark Hamel
Please post a link to the video.
Reply »