7#OVER PRODUCTION

7# OVER PRODUCTION

Over production described as making more  products then the customer...
Example:
- Making extra to cover for scrap
- Forecast production
- Economic order quantity lot sizes
- Piece rate production
- Maximizing utilization

Causes over production:
a. Just-in-case thinking.
b. Misuse of automation.
c. Long set up times.
d. Inadequate forecasting.
e. Keeping busy.
f. Using p extra materials.
g. Local vs overall optimization.

Cost of over production:
a. Obsolete finished goods.
b. Product sold at discount or "clearance" price.
c. Lack of visibility of true capacity.
d. Multiplier effect on all other wastes.

Tools to battle over production:
a. "Kanban" system.
b. Visual management.
c. Quick changeover.
d. One piece flow lines.
e. Talk time...