MGT-322: Logistics Management | Online Homework

The question consists of two paragraphs
The first answer to the first question
The second paragraph is to discuss the first response and then the second response and give your opinion on their answer
Q1: What is meant by the term overproduction? Why do you think this has been described as the biggest waste of all?
Submission Instructions:
Q2 Read your classmates’ messages and post at least tow replies:
((( first response: )))
Since the conceptualization of the 7 Wastes, overproduction has long been ranked as the worst of the seven wastes as it obscures all of the other problems within your processes. Overproduction is the result of producing more of a product than required by customer demand or before it is needed leading to excessive inventory. This is common in batch-and-queue and mass manufacturing facilities and can include production happening before the customer demand requires it.
In a way, it can seem like manufacturing as many products as possible is ideal for that “just in case” scenario. However, this approach is likely to lead to a whole host of issues. Overproduction is seen as one of the worst wastes of manufacturing not because it’s more wasteful or costly, but because it can easily lead to the other wastes of Lean including waiting, inventory, extra processing, and defects. Because overproduction results in high levels of inventory, problem-areas and quality issues can easily be hidden.
The principles of Lean Manufacturing require you to make what the customer wants when they want it, pulling only what is ordered through your workflow. Just In Time manufacturing is possible in any industry with ingenuity and improving technology.
Overproducing causes tie up the capital in stock, raw materials, work in progress (WIP), and finished goods. The cash is what rely upon to run a business, so either leave the short or end up paying charges to the bank. Many businesses have failed. After all, they cannot buy raw materials to service a customer because they have already put their cash into materials that are not required.
Another cost associated with Overproduction is to do with the storage and movement of the inventory that has been created, it all requires space, it needs people and equipment to move it around and it needs containers for storage, all of this is a cost.
To eliminate the waste of overproduction, a facility must embrace the just-in-time production method. The JIT method utilizes a pull system instead of the push system that is at the core of mass and batch production. Instead of forecasting the customer’s demand, production is scheduled as requested. Typically used with a Kanban system, manufacturing of a product does not begin or continue
((((((second response: ))))))
The term overproduction is defined as the production of goods that are unrelated to demands (Jasti