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Part 7

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Over-Production Cont.

Symptoms: Extra copies / equipment

Single sided copying Extra storage for duplicate files,

drawings, and slides Working ahead of deadlines, just-in-case Additional information to cover lack of

communication/direction Recruiting more candidates than

necessary Overlapping mailing strategy Inventory stockpiles Systems requirements not needed or

used Production of un-needed systems or

tools

Causes: Lack of communication Lack of consistent schedules Lack of flexibility Focus on expectation (Forecasted Sales)

versus Customer Demand (Consumption) Bonus systems that reward production

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2. Excess Inventory

Ties up capital. Requires moving. Difficulty in finding material.

Reduces customer responsiveness. Examples:

– Populating Hard disks with old data – NAS– Lots of inventory on shelves, racks, and

floors– Having a package of paper waiting for

approval– Large delivery quantities instead of

frequent deliveries (in or out)– Unnecessary record retention

Takes valuable space.Obsolescence.Losses due to damage.

Multiplies quality problems.

Efficient use of inventory… Not Just-in-Case inventory

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Inventory Cont.

Symptoms: Piles (backlogs) of work Massive re-do campaigns when

problems surface Additional resources to handle

Information (people, equipment, storage, office space, system capacity)

Slow response to changes in customer demands

Retaining information not needed – Intranet, Outlook, Network, Client information, Document systems

Creating product before demand Excessive supplies Personal data bases, systems Obsolescence

Causes: Incapable processes (bottlenecks) Incapable suppliers Management decisions Local optimization Inaccurate forecasting systems Economy of scale – limited

production Available storage areas

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3.Unnecessary Processing• Consumes valuable resources – Disk Space• Creates delay – In data Retrieval• Opportunity for more defects – Wrong data retrieved• Examples:

• Unnecessary approvals– Processing beyond specification limits or customer requirements– All Stress contour plots than what is needed

Eliminate excess work

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Processing waste Cont.Symptoms: Endless refinement Redundant approvals Redundant data entry Reports with too much

information Reports never used or not

needed Excessive distribution lists (e-

mail) Proceeding w/o proper

information Collecting data never used Excessive number of meetings Over-Engineered systems Presentations created but not

used Assignment of “projects” that

are not needed

Causes: New technology used

inappropriately Decision making at inappropriate

levels Ineffective policies and procedures Lack of customer input concerning

requirements Inconsistencies in processing

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4.Unnecessary MotionSymptoms: Looking to find information or supplies Excessive reaching/bending (poor layout) Customers/suppliers too far apart (travel or

delivery time) Confusing motion with work (busy instead of

productive) Traveling vs. conference call Processing transactions using multiple systems,

tools Mouse clicks needed to access information

Causes: Equipment, office layout Lack of work place

organization Inconsistent work

methods Large batch sizes

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5.Defects

Creating and correcting defects robs resources “chokes” flow, and must be minimized or eliminated.

Examples:

Wrong parts from supplier Incomplete and / or Incorrect Inputs

Rework

Six Sigma mentality….Reduce Defects

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6. Waiting

• Adds to cycle.• Consumes valuable resources. • Increases work in process.• Slows response to customer.• Examples:

– Waiting for downloading files from IMAN– Waiting for Peer reviews– Idle time due to lack of “standard” operations– Waiting for Inputs & decisions (dispositions, inspection , Feedback,

Approvals…)

When Inventory Waits Your Customer Waits

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