However this is one of the most surprising facts which inventory is sometimes a

However this is one of the most surprising facts

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However, this is one of the most surprising facts which inventory is sometimes a symptom of problems in the process. Inventory costs money, every piece of product tied up in raw material, work in progress or finished goods has a cost and until it is actually sold that cost is yours. The waste of Inventory hides many of the other wastes in your systems. Inventory has to be stored, it needs space, it needs packaging and it has to be transported around. It has the chance of being damaged during transport and becoming obsolete 6. Unnecessary/Excess Motion Motion waste is somehow related to the transportation waste. In this case the waste is produced by movements of man or machine which are not as small or as easy to achieve as possible within a process. This waste is related to ergonomics and is seen in all instances of bending, stretching, walking, lifting and reaching. Producing is always apparently good because it is productive. However, producing too much involves strategical risks. Excessive quantities of products or stock fabricated too early will create inventory wastes. Instead of that, the production time and labour can be used for adding value to the product and the company. For example, improving the processes or reaching new customers. The production must be limited with a clear horizon: the demands of the customer. Nothing more should be generated, nor earlier than that. 7. Defects The most obvious of the seven wastes, although not always the easiest to detect before they reach your customers. Rework or scrap have a direct impact to the bottom line and can result in a tremendous cost to organizations. Defects on deliverable products not only affect your reputation but also produce severe delays and warranty costs.
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Reworks and adjustments of the products or the equipment are unproductive processes since they are not adding real value to the final product but cause invariably cost far more than expect. Every defective item requires rework or replacement, it wastes resources and materials, it creates paperwork, and it can lead to lost customers. The waste of defects should be prevented where possible, better to prevent than to try to detect them, implementation of poka yoke systems and automation can help to prevent defects from occurring. Also the source of the problem must be analysed and solved, instead of putting efforts into repairing what should be already correct. Toyota Production System ( TPS ) The Toyota Production System (TPS) is an integrated socio-technical system , developed by Toyota that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers.
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1. Standardisation Toyota believes standardized work is the basis for empowering workers and innovation in the work place. If the process is shifting, then any
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