Muda Walk - Week 3 - 09/13 to 09/17

The Theme this week is: Reduce Inventory

This week we are looking for the waste of Inventory. This waste is tied to the waste of over-production.  We order or fabricate too much or too soon. so we have to store it somewhere causing inventory to build.

INVENTORY itself is waste. It costs money – more than you think! Some inventory may be called strategic inventory – inventory that is necessary to keep the crews installing. Any other inventory is excess and waste. The challenge is to “see” the difference.  Any material or parts not being used by the customer is waste. This includes raw material, work in process and final fabrications. This type of waste includes extra parts, excess space and unused tools. Look for stashes and personal stockpiles - they are inventory too.

Inventory is a double serious waste because it produces or hides other wastes. Companies and job sites often accumulate inventory because of unreliable support from the shop, vendors or the material delivery function or because of efforts to save money through a bulk buy. Usually the money saved in bulk buys is spent by the hidden, but real, costs of holding inventory.  Companies also accumulate inventory because of weak planning and poor job site coordination.

When you spot inventory waste ask “WHY” – why do we have to keep this inventory? Keep asking why until you find the root cause and implement countermeasures.

Record your improvements. Find the root cause. Implement improvements. Try something; if it doesn’t work try something else. Stay with the Muda Walk.

dennis sowards
Quality Support Services, Inc.
Office: 480-835-1185
Cell: 602-740-7271