Overproduction

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  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.

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Why is overproduction such a big problem?  

• When overproduction occurs inventory is built up.  This consumes space, time and other resources.  However, at the heart of the waste of overproduction is that it hides problems.  Inventory can be used to buffer late deliveries, hide defects, cover up variability in demand and mask the waste of waiting.  In addition to this, massive amounts of overproduction make it nearly impossible to gauge and understand what your true potential is with regards to capacity.

Examples:

1. ​Producing to much.
2. Producing to fast.
3. Purchase orders not ready to be ordered.
4. Creating orders that are not ready to be processed.

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Challenge:

• Overproduction is considered the deadliest form of waste of all forms of the 8 forms of waste. Why in your opinion is this form of waste so deadly?  Share your thoughts in the comments section below and receive a coupon to one of Lean Strategies International LLC's courses.

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