2. JUST IN TIME (JIT)
A N I N V E N T O R Y M A N A G E M E N T
S T R AT E G Y T H AT R E D U C E S WA S T E
A N D I N C R E A S E S E F F I C I E N C Y B Y
R E C E I V I N G I N V E N T O R Y O N LY A S
T H E Y A R E N E E D E D F O R
P R O D U C T I O N , N O T A H E A D O F T I M E .
2
4. OVERPRODUCTION
PRODUCING MORE THAN THE CUSTOMER ORDERS OR
PRODUCING EARLY (BEFORE IT IS DEMANDED) IS WASTE.
INVENTORY OF ANY KIND IS USUALLY A WASTE.
EG: WAREHOUSE FILLED WITH PRODUCT THAT DOES NOT
SELL OR HAS NOT SOLD
4
5. QUEUES
IDLE TIME, STORAGE, AND WAITING ARE WASTES (THEY ADD NO
VALUE)
WAITING HAPPENS WHEN THE PERSON OR ITEM IS READY FOR
THE NEXT STEP, BUT THE PROCESS IS NOT PREPARED TO
ACCOMMODATE THEM. HERE ARE SOME EXAMPLES:
-PATIENTS IN WAITING ROOMS
-SOFTWARE SITTING IN THE QA QUEUE
-WAITING FOR RESPONSES FROM OTHER DEPARTMENTS
5
6. TRANSPORTATION
• MOVING MATERIAL BETWEEN
PLANTS OR BETWEEN WORK
CENTRES AND HANDLING THAN
ONCE IS WASTE.
• EG- THE USE OF MATERIAL
HANDLING DEVICES TO MOVE
BATCHES OF MATERIAL FROM ONE
MACHINE TO ANOTHER WITHIN A
WORK CELL.
• THE SHIPMENT OF PRODUCT FROM
ONE “FUNCTIONAL” FACTORY TO
ANOTHER.
INVENTORY
• UNNECESSARY RAW MATERIAL, WORK-
IN-PROGRESS,OPERATING SUPPLIES ADD
NO VALUE AND ARE WASTES.
• EG-INVENTORY CAN BE OBSERVED IN
MANY AREAS OF A BUSINESS, AS EITHER
RAW MATERIALS THAT HAVE BEEN
ORDERED IN EXCESS OF CUSTOMER
REQUIREMENTS DUE TO MISTRUST OF
SUPPLIERS OR TO TAKE ADVANTAGE OF
“BULK DISCOUNTS” TO THE LARGE
AMOUNTS OF FINISHED GOODS SITTING
IN YOUR WAREHOUSE JUST IN CASE A
CUSTOMER ORDERS THEM.
6
7. MOTION
• MOVEMENT OF EQUIPMENT OR
PEOPLE THAT ADDS NO VALUE IS
WASTE.
• EG- A MACHINE THAT TRAVELS
EXCESSIVE DISTANCE FROM START
POINT TO WHERE IT BEGINS WORK.
• HEAVY OBJECTS PLACED ON LOW OR
HIGH SHELVES.
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OVERPROCESSING
• WORK PERFORMED ON THE
PRODUCT THAT ADDS NO VALUE IS
WASTE.
• EG- PAINTING AREAS THAT WILL
NEVER BE SEEN OR BE AFFECTED BY
CORROSION.
• OVER POLISHING AN AREA THAT
DOES NOT REQUIRE IT.
• RETURNS, WARRANTY CLAIMS,
REWORK, AND SCRAP ARE A
WASTE
• EG-SCRAP PRODUCED BY
POORLY MAINTAINED
FIXTURES.
• PARTS ASSEMBLED WITH THE
INCORRECT ORIENTATION.
• MISSING SCREWS AND OTHER
FIXING DUE TO LACK OF
CONTROLS
DEFECTIVE
PRODUCT
