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CMA Intermediate · Operations Management and Strategic Management · Lean Operations and JIT

A Pune auto-component plant makes batches far larger than customer orders need, so finished goods pile up in the warehouse. Which category of lean waste does this best illustrate?

This is overproduction, the waste of making more or earlier than customers require. It is considered the worst lean waste because it breeds other wastes such as excess inventory, storage space and handling. Waiting, over-processing and motion refer to idle time, excess work on a unit and unnecessary movement.

  1. AWaiting
  2. BOverproductionCorrect
  3. COver-processing
  4. DUnnecessary motion

Explanation

Producing more or earlier than the customer demands is overproduction, regarded as the most serious waste because it causes excess inventory, storage and handling. Waiting concerns idle time, over-processing concerns doing more work than required on a unit, and motion concerns operator movement.

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