More materials, parts, or products on hand than the customer needs right now
This sixth waste can be physically and visually identified. (See our previous blog posts for the first five of the seven Wastes: Over-Production, Transportation, Motion, Waiting and Processing.)
Inventory in the form of raw materials, unfinished product or parts, or finished goods sitting on a pallet are non-income producing capital outlays. These build-ups can also be indicators of production problems and will uncover hidden constraints in the manufacturing process. Common causes of inventory build-ups include raw materials being stockpiled to compensate for supplier lead times, a lack of flow for work in process, long set-ups for finished goods, excessive lead times for consumable supplies and paperwork delays for purchased components.
Inventory Waste in PMs:
Carrying too many PM related spare parts. Pulling PM parts from stock instead of ordering them as needed, wrong PM task type.
Carrying too many Repair related spare parts. Repairing discovery when found.