Alternative costs in lean production

JIT production is the pursuit of today's manufacturing industry, the so-called excellence, in order to achieve lean

The first thing to know is what is waste. Here I will compare the corresponding cost increase factors with those “waste”:

The first is the waste of waiting, non-value-added operation is the increase of no cost, and there are those who wait for it:
The switching of machines on the production line, the imbalance between workstations, the failure of machinery and equipment, the lack of materials, and the unbalanced use of production schedules.
This type of single item does not seem to be the case, and the corresponding difference in cost is mainly reflected in the overall situation, resulting in the transfer of production capacity, so that the workers' wages, equipment idling, etc., have no substantial increase.

The second is the waste of inventory backlog. It will directly result in a backlog of funds. Look at those unnecessary inventory increases, which will lead to those results?
1. Produce a lot of unnecessary handling, warehouse management accumulation, search and removal work
2. Occupancy of the site, increase of warehouse rental expenses, and increase of management expenses
3. Insufficient production capacity is obscured and first-in first-out operations become difficult.
The immediate cause of the overstock is the over- or under-purchasing of the procurement. Over-manufacturing can also result in a backlog of inventory. When the in-process and backlog increase the cost of transfer and the cost of transportation, it also directly leads to a backlog of funds.

Finally, excessively precise processing is also a waste. It will cause unnecessary manual waste, use more than the working time and other equipment, and increase the additional personnel, manpower, production resources, utilities, etc., and the processing of management hours. Also increase accordingly, time waste will also affect the completion of production.

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