Overproduction Waste Is One Of The Seven Deadly Sins

Distinctive areas of waste inefficiencies that could be a threat to any company's profitability

, and therefore to sustainability, has been identified by Toyota, one of the leading auto manufacturers in the world. Essentially, these areas could kill a company's sustainability due to excesses that could pull down profit, including: poor quality control, movement (or motion), transport, waiting time, overproduction, process and inventory.

It can be deceiving to think that just because you can't see any waste, then waste is not there. A very bad example of how the majority of establishments nowadays just pay lipservice to the principles of sustainability is the overproduction waste. In fact, many organizations believe that overproduction is a necessary part of doing business.

Overproduction waste is simply the production of goods in quantities that are greater than demand. This position will be especially aggravated during an economic slowdown and will become very difficult to reverse. For a single item to be considered to have been "overproduced", it has to incur additional waste elements throughout the entire lifecycle process.

In corporate culture, there is a feeling that if a production line is not utilized 100% of the time, or if particular employees are allowed to be idle at all, that this is more wasteful than letting them operate 24/7. This is a popular misconception and will at the least require a more educated assessment of equipment ROI.

Any company will have the risk of draining its resources if it continues to neglect the overproduction waste and the overall excesses in its operations. Remember that every item produced carries a cost in terms of backup, support, administration, finance and other overheads and as it sits on a shelf, the company's profit potential also gathers dust with it.

It is possible to minimize overproduction waste through integrating a waste management system that includes auditing of excesses and correlating production to the work order chain. Quite simply, if a sale is not made or projected, the production equipment should be constrained from engaging.

In the modern era, economic pressures lineup alongside environmental awareness to force every company to consider its own sustainability. Other than carbon emissions reduction, sustainability could also involve other areas such as water use consolidation, waste reduction, and minimizing any form of excesses.

Fully inclusive sustainability management tools could help to educate the company's management and identify areas of inefficiency, such as overproduction waste. Such systems will almost always pay for themselves in short order.

by: Daniel Stouffer

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