Overproduction occurs when more products are made than needed, leading to excess inventory, wasted resources, and unnecessary costs. Kaizen aims to eliminate overproduction by aligning production with actual demand, ensuring that resources are used efficiently and that products are only made when needed. This results in reduced waste and cost savings.
Quantification:
- Reduce the volume of overproduced products (measured in units or monetary value).
- Measure the reduction in storage costs and the improvement in inventory turnover.
- Increase production efficiency, measured by the ratio between production and actual demand.