CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT
A packaging unit in Pune produces 1,000 cartons daily against a daily demand of 700 cartons. The extra 300 cartons pile up in the warehouse every day. In lean terms, which waste does this best represent?
The waste is overproduction, because the unit makes more cartons than customers demand. Producing 1,000 against demand of 700 builds unneeded stock, which in lean thinking is the most serious waste since it leads to inventory, handling and other wastes.
- AOverproductionCorrect
- BWaiting
- COver-processing
- DDefects
Explanation
Overproduction means making more than the customer demands or before it is needed. Producing 1,000 against demand of 700 creates surplus stock. Waiting would involve idle time of people or machines, not excess output.
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