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7 Waste Lean

9.9102.QMM

Manufacturing
#7 THE WASTE OF INVENTORY
About Inventory

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Definition
Inventory is the Raw Materials, Work in
Proggres, And finished goods.

Inventory waste is stock and work in


process in excess of the requirements
necessary to produce goods or services.

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CAUSES

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The main causes of the waste of inventory
is that of the waste of overproduction,
making more than the customer wants or
in advance of customer demand, these
two wastes are heavily interlinked and you
should read up on the waste
of overproduction.It can also be caused
by poor layout and lack of balance in your
workflow causing inventory to build up
before or after different processes.

The next causes is there's no clear


SOP related with maximum stock
quantity, wrong setting machine,
bottleneck process, downtime
machine

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Why Stock inventory is
important?
1. To avoid the expired date
due to material.
2. To avoid the deadstock
3. Decrease the cost of
warehouse rent

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EFFECT
Long duration, Defect will be detected that
distact the quality of products.
Solution

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Example
Inventory can be observed in many areas
of a business, as either raw materials that 1. Create SOP for examples spare part
have been ordered in excess of customer warehouse so that inventory can be
requirements due to mistrust of suppliers managed appropriately. The aim is to
or to take advantage of “bulk discounts” reduce the desposite goods but not
to the large amounts of finished goods cause stock out.
sitting in your warehouse just in case a 2. A stirct rejection of PPIC so that
customer orders them.In addition to this products do not enter the  warehouse
we can see levels of inventory building up so that there is no waste in inventory
in front of processes that are slower than 3. Kanban system can be used to help
the preceding processes and visa versa. ensure that we balance our processes
We also see large batches of materials and prevent the build up of inventory.
being moved around due to machine
setups requiring us to run over sized
batches to ensure we make good use of

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our machines.

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