By December 8, 2005 2 Comments Read More →

Doron Levin on Overproduction

Bloomberg.com: Bloomberg Columnists: Doron Levin

Another good column by Doron Levin. “Overproduction” is considered to be one of the “8 Types of Waste”. It is also considered to be the “worst” type of waste by Toyota Production System practioners because overproduction (producing more than the market requires over a time frame) leads to all the other types of waste:

  • Defects
  • Overproduction
  • Transportation
  • Waiting
  • Inventory
  • Motion
  • Unnecessary processing
  • Not fully utilizing people’s talent

Congrats to Doron for using the word “heijunka” (the concept of leveling production). It’s overproduction to build large batches, because you might build a month’s worth of product in three days, which leads to other types of waste. Or, if you’re doing like GM, you’re consistently building more cars than the market demands, which is leading to many forms of waste and pain.

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an eBook titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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2 Comments on "Doron Levin on Overproduction"

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  1. Anonymous says:

    Interesting that he mentions creating “realistic forecasts of demand”…

    The one thing we know about forecasting is it will never be accurate, so why not build to market demand instead guessing?

  2. Anonymous says:

    Even for a “build to order” company like Dell Computer, they still need forecasts for supplier planning, etc.

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