RE: Inventory

[Rip Stauffer <rstauffer@bluefirepartners.com>]

Aren't there more sources of in-process inventory than "just-in-case?"
Just-in-case is certainly one source, but I can think of at least a couple
of others, equally as pervasive:

a. Inventory arising because of batch-and-queue production paradigms. We
produce batches of piece partt and then pass on the batches, rather than
optimize production lines for continuous flow. 
b. Inventory arising because of ABC resource accounting paradigms.
Continually striving to cut cycle times without any consideration of takt
time. Keep everyone producing as many as possible, even if there is no
demand for the pieces produced.

I'm sure there are others, but most organizations I've seen that at least
eliminate these three sources do very well. For my own part, I would not
call this "managing inventory." I would call it better management of the
production system.

Best regards to all,

Rip

Rip Stauffer, Senior Consultant
BlueFire Partners
1300 Fifth St. Towers, 150 So. Fifth St.
Minneapolis, MN 55402
612-344-1027
mailto:rstauffer@bluefirepartners.com
http://www.bluefirepartners.com/