Agile Factory

Inventory reduction - WIP reduction


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On the chart above you can see the WIP reduction result for one of our mfg. lines. We have reduced 6x times within a few days and since that time we are keeping very low WIP. Do you want to know how we achieved? Read this section

Maybe there is not manufacturing company without WIP reduction activities or even WIP reduction projects. The reduction of work in process seems to be very popular tool for improving company overall performance in order to cut the manufacturing leadtimes, increase flexibility, reduce cost and improve quality. I know there are many articles related to WIP inventory reduction. But almost all are written by consultants :)
There are also well known tools to reduce inventory. The most popular are kanban and DBR by Goldratt.
I am running WIP reduction activity in our company and I would like to summarize my experience, trials and fails, and of course results, and to document the way how we achieved the WIP reduction to reduce WIP to with help of many colleagues from several departments.
I think it might be usefull for you to read about our way. Lets go through following rules.
If you have any comment or question, let me know.

WIP reduction rules