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Excess Production will Advance Procurement of Materials and Parts

Posted in Management, and Manufacturing Waste

In the previous discussion stated that overproduction will lead to stock products abundant in the area of store that can cause uncontrolled 5S condition. Of course, not only that caused by excess production. Procurement is also affected by the production that is not balanced.

Increased procurement would not want to do to replace the materials and parts that had already become a product. This is done to improve production efficiency to avoid waste in other lines.

Lean manufacturing is like a pillar of the house. They mutually support one another. If there is one out of balance it must be corrected, or other elements relating will be damaged as well.

Overproduction problems not only affect the advance procurement of materials and parts, but also cause losses on the other. This will be discussed one by one.

Procurement process is set up in such a way with production needs and customer demand. Everything is managed by well-organized and scheduled. Therefore, if there are problems associated with production (Over or WIP) will affect the purchases of raw materials and spare parts.

This clearly would affect the company’s financial condition. Unexpected costs must be incurred to maintain the manufacturing balance.

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