Your factory is oozing with inventories.

HOW TO CUT INVENTORIES

  • Remove capacity utilization and labor utilization as key performance indicators.
  • Disapprove all requests for storage spaces, racks, shelves, cabinets, warehouses, and storage personnel.
  • Eliminate spaces between equipments and work stations; allow only at most 10% of total plant area for all types of inventories.
  • Mentally write off 50% of inventories from your balance sheets.
  • Demand suppliers to deliver just in time; at least double their delivery frequency.
  • Mistrust all forecasts, cut lead time by 80%, and produce and deliver according to demand.

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Product quality stinks your own employees won't buy them.
Your factory oozes with inventories.
Employees are not talking to one another.
Goods are delivered on time accidentally.
Your company suffers from information overload.
Your customers are falling out of long slow moving queues.
Your factory and offices are dirty and disorganized.
Your board meetings are long and boring
Your company is always in a firefighting mode.
 
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