There’s just something about having a neatly organized, fully stocked inventory that still appeals to some business owners. It may be because they have a fear of running out of products, or it may be due to the belief that since they have the space (warehouse) that they must fill it up with products. Whatever the reason, overproduction is overrated. Overproduction is a phenomenon that occurs in nearly facet of life. Consider the holidays for example. During the holidays, many people make a lot of food and in many cases it is usually much more food than is ever typically needed. However, the fear of running out of food is far too daunting than just throwing out the extras after the meal. While some people do choose to save the leftovers and eat them later, there still is quite a bit food that is destined for a quick trip right into the trash can. This is the epitome of waste. Perfectly good and edible food being thrown into the trash is waste. Waste can be anywhere, it occurs with food, time, money, and basically any sort of product or practice. Creating waste is fairly straightforward and simple, however, reducing and/or eliminating is where it becomes more difficult.
Tips to Stop Overproduction in its Tracks!
There are a few helpful strategies out there that have proven to be quite beneficial when it comes to putting a stop to overproduction. Consider these tips:
- Believe in Making a Change – If you are a true follower of overproduction you must first make the leap of faith towards a more supply and demand mentality. While a fully stocked warehouse may provide a false sense of security, it is actually adding no value to the business whatsoever. When extra product simply sits on a shelf it is not only taking up space, but it is also tying up useful funds that could be used more wisely in other places. In order to eliminate overproduction a true valiant effort must be made.
- Prepare in Advance – Many business owners believe that they must keep their employees busy at all times, and often have them continuously producing product. While it seems like a good choice to keep employees productive since they are being paid, it is not wise to keep them producing products when there are already enough products being stored in the first place. Instead, try adjusting employee work schedules to follow the natural supply and demand rhythm of your business. For instance, during busier times it may be easier to simply hire temporary or seasonal employees, then during slower times there aren’t tons of employees just sitting around with nothing to do.
- Expand Product Possibilities – Consider the possibility of making new products or expanding your product line. Many businesses have the machines, tools, and capabilities to create new products but hesitate to do so. It may be a smart choice to look into other options so employees can be kept busy making a variety of different “in demand” products versus overproducing a few specific products.
If you are serious about adding value to your business, it is imperative that overproduction be eliminated. There is no value to overproduction and in the end it will rob you of funds, space, and time. Explore the options and alternatives to overproduction to enhance the success of your business.
- Lean: Is Forecasting Feasible?
- Going Lean: Five Common Misunderstandings
- Decision-Making: Is Quicker Always Better?
- Employee Involvement: It can Make or Break LEAN
- Lean Eliminates Waste, Not People
- Small Changes Add Up!
- What Is a Kaizen Event?– creativesafetysupply.com
- Value-Added vs. Non-Value-Added Activities– creativesafetysupply.com
- Warehouse Management– creativesafetysupply.com