Production ahead of demand, which is captured by the
finished inventory.
Producing
more than is required to meet customer demand, or the next operation in
sequence it is termed to be overproduction.
Causes for
overproduction:
Ø Poor
Planning
Ø Just-in-case
Production
Ø Poor
communications
Ø Processes
which cannot consistently produce the Quantity or Quality required
Ø Lengthy
Set-up and Cycle times
Ø Local
Optimization (Production that primarily benefits a single department’s
interests)
Ø Poor
equipment reliability
Ø Excessive
lead time
Ø Delivery too early
Ø Shortage of Storage space
Solution for this
waste:
Ø Implement
Pull systems
Ø Connect to customer
Ø Synchronize departments for information
sharing.
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