Doron Levin on Overproduction

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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
Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.

2 COMMENTS

  1. 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?

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