Organizational Waste-over Production

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OVER PRODUCTION
Overproduction is producing more or faster than the required demand or speed. It usually starts by getting ahead of the work required. Overproduction is mainly occurred when; Tact time>Cycle time Tact time=(time available)/(customer demand)

When the cycle time which is the time taken by the production line to create a unit of product is very much smaller than the tact time, the time which is expected to be taken by the production line to meet the demand, overproduction is occurred. Reasons for overproduction

Measuring productivity by calculating the amount produced
Unreliable process
Unstable schedules
Unbalanced work load
Lack of reuse and recycling
Woking for inaccurate information on actual demand
Installing new machinery but using the same process of manufacture Consequences of overproduction
The fall of the price of the product
Difficulty of selling all of the goods
Loss of business profit
High utility cost
Disposal charges
Unnecessary waste handling cost
Excessive raw materials
Unnecessary inventory and storage costs
The money is unnecessarily stuck in the warehouse

How to eliminate overproduction
First of all the waste of overproduction within the organization must be identified. Then mainly the cycle time must be matched with the tact time. The most successful way to reduce overproduction is to implement the principles of lean manufacturing, identify the value stream using tools such as value stream mapping, process mapping, spaghetti diagrams and a host of analytical tools that are available to us. Then the work place must be rearranged accordingly by reengineering new more suitable production systems designs using machinery with suitable technology, not high tech machines too advanced for the process. Also practise the just in time principle which will contribute to the reduction of overproduction.
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