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Your
factory is oozing with inventories.
HOW TO CUT INVENTORIES
-
Remove capacity utilization and labor utilization
as key performance indicators.
- Disapprove
all requests for storage spaces, racks,
shelves, cabinets, warehouses, and storage
personnel.
- Eliminate
spaces between equipments and work stations;
allow only at most 10% of total plant area
for all types of inventories.
- Mentally
write off 50% of inventories from your balance
sheets.
- Demand
suppliers to deliver just in time; at least
double their delivery frequency.
- Mistrust
all forecasts, cut lead time by 80%, and
produce and deliver according to demand.
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