Overproduction
waste and inventory waste are kin. Overproduction increases work-in-process
(WIP), thus the overall inventory is increased. From the section
on Inventory Waste, we explained that excess inventory is a symptom
-- a measure of total manufacturing effectiveness.
Overproduction
is defined as:
Making
MORE than is required by the next process
Making EARLIER than is required by the next process.
Making FASTER than is required by the next process.
Potential
causes of overproduction are: misuse of automation, long process
setup, over-engineering, etc. Overproduction doesn't promote
a teamwork atmosphere and can add to low morale, which may lead
to some potentially undesirable habits. Product quality can suffer
in overproduction which creates defects and rework (extra processing).
The
next time you enter a McDonald's, observe the changes they made
in how they assemble the hamburger or other main course of the
meal. Until a few years ago, when you ordered a Big Mac the counter
person would turn around to the warming shelf and grab the Big
Mac. There it was, pre-made, sitting under a food warmer keeping
it "hot" just for you. Nowadays, that Big Mac is made "fresh" to
order from little individual warming bins that keep your food
hot or cold. Burger King & Wendy's already had this in place
and used it as a marketing tool. Remember Burger King's slogan "hold
the pickles, hold the lettuce, special orders don't upset us,
have it YOUR way..." McDonald's reduced overproduction waste
by modifying their process, which reduced the number of burgers
that had to be discarded due to being too old. This lowered operational
costs and increased profits. One added benefit: your burger is
hot and your lettuce is cold.
Reducing
overproduction will result in lower inventory, improved quality,
less rework and improved productivity. All of these improvements
affect the bottom line.
CITEC
can help identify the causes and sources of overproduction waste
within your operation and provide solutions.
Contact
CITEC's WasteBuster today: Eric Myers.
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