The easiest way to define overprocessing is doing more to a product than what the customer, specification or transformative process requires the first time through.  Overprocessing is sometimes referred to as inappropriate processing because it includes steps that are not needed, extra handling, duplication of activities and processes that are just not statistically capable of producing the desired results.

  A Defect is any output from a service or a product that does not meet the customer required specifications, standards or requirements.  Defects can occur at any stage of a value stream or production process.  A defect is not the same as defective.  There may be more than one defect in a defective product or process.  A Defect is also one of the 8 forms of waste or muda. 

See: Pipeline Inventory

  Programs like six sigma, lean and total quality management are effective ways to manage continuous improvement strategies and create quality in an organization.  Over the years these fundamental strategies have proven to be drivers of success.  With this in mind, every organization needs quality at all levels of a business.  In today's global economy quality is a common desire.  Everyone wants it.  So, where did this desire for quality come from?

  Finished goods are products or end items that are sold as a complete item or unit.  These items are commonly subject to a customer order, sales order or purchase order that is linked directly to a customer.  Finished goods and products are an extension of your inventory. They are materials or products that have reached a point in either the manufacturing or transformative process where they are available for consumption. You can calculate finished goods using a formula that will also help create an inventory ratio which determines the value of your goods for sale.  Finished goods inventory is generally considered a short term asset.  Short term assets are expected to sell in less than a year as opposed to long term assets which are typically investments that will be kept for longer than a year.  Let’s look at an example of finished goods.

  Overproduction is one of the 8 major forms of waste.  It occurs when materials, services or information are created earlier or in excess of the needed demand.  Overproduction is oftentimes referred to as the deadliest form of waste because it directly causes and enlarges other forms of waste, while indirectly contributing to many others.

​  In Transit or Pipeline Inventory is Inventory that is in transit.  Typically the inventory that has left the shipping dock of the seller or supplier, but not yet reached the receiving dock of the buyer or customer.  Any inventory that is in the “pipeline” is inventory that is moving within the supply chain.

  The 8’th form of waste was identified and added to the other 7 forms of waste by Dr. Jim Womack in the book Lean Thinking.  This type of waste suggests that we go to a great effort in order to obtain well qualified and experienced employees that eventually end up working behind a desk from nine to five.  While the work that these individuals do on a daily basis is very important, it is guaranteed that almost every individual is capable of much more than what he or she does.  The waste of underutilized skills also applies to machine talent.  Too often we use the same systems and procedures because it is what we normally do and we rob those computers or machines of their full potential.  Like our computers and machines the same goes for our most important asset, people.

  A component could be a raw material, subassembly or a part.  However the identifying difference is that a component which could be a part, raw material or subassembly goes into a higher level assembly, item or part.

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  A raw material is any purchased, supplied or extracted item that will eventually be transformed via a manufacturing or transformative process.  The raw material or materials are generally converted into components or a finished product.