factory is oozing with inventories.
HOW TO CUT INVENTORIES
Remove capacity utilization and labor utilization
as key performance indicators.
all requests for storage spaces, racks,
shelves, cabinets, warehouses, and storage
spaces between equipments and work stations;
allow only at most 10% of total plant area
for all types of inventories.
write off 50% of inventories from your balance
suppliers to deliver just in time; at least
double their delivery frequency.
all forecasts, cut lead time by 80%, and
produce and deliver according to demand.