Essay On Inventory Waste

3. Excess inventory consumes a lot of time and needs a bigger storage thus increasing the cost. Causes of inventory waste are over-production, imbalanced line, big batch sizes, long lead times, local optimization, large minimum order quantities, high rework rate, JIT-incapable suppliers, and lack of material requisition and issuance standards. Inventory wastes come from the purchasing, issuance, storage of excess or excessive supplies, materials, and other resources. This waste can also be caused by overproduction as excess materials and work-in-process. Inventory waste is often due to lack of planning and failure to match purchases with the actual consumption or usage rate of a particular resource. Another example is the storing of slow-moving

Defects lead to a rework operation or a destruction of the units produced; consequently to a waste of products and time. Causes of this waste are unclear customer specifications, incapable processes, lack of process control, unskilled personnel, and incapable suppliers. Quality is doing the right thing right the first time. It is about prevention and planning, not correction and inspection. Bad quality or defects do not only result in customer dissatisfaction and damage to company image, but also in wastes due to additional costs and time to recall, rework, repair, and replace the defective items. Continuous quality improvement and preventive measures are the most effective means to cut defect

Motion includes movement of the employees in addition to health and safety issues . Causes of this waste are poor lay-out and housekeeping, disorganized work place and storage locations, unclear, non-standardized work instructions, and unclear process and materials flow. Motion waste happens when unnecessary body movements are made when performing a task. Examples are searching, reaching, walking, bending, lifting, and other unnecessary bodily movements. Workers commit this form of waste by searching for tools or documents when their workplace is cluttered or disorganized. Motion waste often delays the start of work and disrupts