Inventory reduction in a factory means to control and maintain an optimal amount of inventory such as purchased items, equipment spare parts, materials, consumable goods, raw materials, etc. If you cannot control the inventory in the optimal amount, you will have large inventory.
Solve these issues
with inventory reduction in a factory
for inventory reduction
“What you need, when you need it, as much as necessary”. The preceding process eliminates the waste of inventory by producing only instructed by the following process.
The precondition for inventory reduction is “Heijunka production (leveling production),” which levels production volume and manufacturing methods.
Elimination of the product stagnation in the process and between processes enables the one piece flow production.
The idea of market-oriented (focus on consumer needs) is necessary for inventory reduction. It means to provide the products customers want (products with required and desired functions) when customers want at the reasonable price for customers.
“Heijunka production (leveling production)”, which levels production volume and manufacturing methods is one of the preconditions for Just-in-time production, which is the basic idea of the Toyota Production System, “to produce and deliver what you need, when you need it, as much as necessary”.
Excessive inventory interrupts the flow of materials and increases lead time. In the production shop floor, having some inventory is justified in order to meet delivery deadlines, but it covers the bad points of the shop floor and masks the problems.
Inventory can be reduced significantly by eliminating the stagnation of materials through the one piece flow production.
Specialist of inventory reduction
After working as a leader in work restructuring and system restructuring at a major electronics manufacturer and as a consultant (executive officer) at Japan Excel-Management Consulting Co., Ltd., he is currently the business manager of IMOC (Inventory Management Operation/Outsourcing Center). He has a doctor of engineering.
He has engaged in supply chain reform, inventory reduction/optimization, BPR (Business Process Re-engineering), ERP (Enterprise Resource Planning), and other consulting related to system restructuring etc. for over 20 years. He implements consulting in the field of structural innovation, including human resource development and raising awareness.
Case example of Genba Kaizen Consulting RESULTS
Acquired orders from two new customers
by improving quality.
We reduced most work-in-progress inventories and defective inventories, which were found throughout the factory, and reduced manpower, and now we almost no longer receive customer complaints that we had every month before. (Automobile industry / Plant manager)
Turn the factory into a showroom
in order to improve profitability
We improved 250 cases out of 300 cases pointed out by the 5S patrol conducted for one year. The factory was realized to be the showroom and also achieved cost reduction of 30 million yen per year. (Metal processing / Director)
Productivity Up to 169.6%
by 6 months of improvement activities
the Japanese president decided to outsource a shop floor improvement consulting to have their shop floor checked, and asked us, Hirayama Consulting.（Auto parts manufacturer/Managing director）
3 reasons why we are chosen REASON
Improvement experience of
more than 1,500 companies in 40 countries
There must be the shop floor issues that cannot be solved by your own company alone. Improvements and reforms for manufacturing industry to survive, regardless of country or industry, need development of your human resources through practical experiences of improvement, and strengthening of your production system base.
Consulting that shop floor workers
acknowledge our superiority and be pleased
In conventional consulting styles, there was a distance between consultant and the shop floor because it was promoted mainly consultant and management executives. Our consultant can provide a guidance without a distance between consultant and the shop floor through the guidance based on the "seeds of improvement" in a concrete way, instead of "finding fault" like a critic.
Continuous improvement will continue
even after the end of guidance
While strengthening "human resource development", we focus on the "overall flow" from design to purchasing, manufacturing, logistics, and production control, and provide guidance that matches the actual situation of your company. Continuous improvement will continue even after the end of guidance through the guidance that is acceptable to the shop floor workers.