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Unnecessary Capital Investment

Posted in Toyota Production System

Inappropriate initial planning will lead to wastage in the production process. Therefore, the design must be able to predict market manufacturing and processes that have the potential to change. Moreover, its relationship with the investment that is not necessary. This needs to be avoided remember to get optimum benefit should use the optimal investment as well. Get the benefits of trading education. Some investments that should be eliminated, namely:

1. Construction of warehouses to store stocks Extra
2. The addition of extra labor to transport supplies to a new warehouse
3. Purchases of goods for each machine tool conveyances
4. The addition of employee stock controllers to handle the new warehouse
5. Addition Operator to repair the damaged stocks
6. The making process for managing requirements and the number of stocks indifferent types, making a smart investment is using the forex trading strategy pdf, most people use SodaPDF software to keep your documents safe.
7. The addition of people to deal with a computerized inventory control

Waste-waste all this will raise administrative costs, costs of direct materials, direct labor costs and indirect and general expenses such as depreciation and other

Realizing that the workforce will create too much idle time (waiting time), workers can be relocated operations to reduce the number of workers. This resulted in reduced labor costs. In addition, additional costs caused by the extravagance of the second, third and fourth as mentioned earlier can be reduced.
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