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Reduce WIP & inventory

WIP levels have become one of the top 5 KPIs most manufacturing companies are focusing on. Why think about ways to reduce WIP? If you have high WIP, it slows down your cash flow. If you don’t have cash, you cannot invest. High WIP also usually means longer lead times and more opportunities for mistakes in the production process.

Lean production is all about waste elimination; about producing what is needed and when it is needed. High inventory represents one of the obvious wastes in the manufacturing process.

What are the main disadvantages?

  • high costs
  • large storage space required
  • visual management is difficult
  • machine breakdowns are harder to detect
  • additional administrative costs
  • increased time and financial costs related to searching
  • increased risk of having to deal with runout and expired parts

Find out about other ways to improve your factory performance

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I want to improve my factory performance

Reducing WIP with Productoo

It’s not necessary (and sometimes not even possible) to set strict WIP limits. Start by mapping and understanding your value streams. You can analyze your current production with Production Tracker – and identify your weak points. Use the tool to monitor your stock as well as the overall material flow.

If you have a good overview of your production process, it’s easier to optimize your planning. Production Control helps you create optimal plans that reflect production capacity and customer demand. Thanks to stock level projections as well as real-time production status updates, the solution enables you to avoid overproduction and optimize your WIP levels.

If you digitize the material flow, your work centers become more connected, which helps reduce your product lead time. Following the principles of pull system, the solution allows you to start new work only when it’s needed (either due to customer demand or e.g. safety stock replenishment).

The benefits of implementing Productoo solutions include:

  • better use of production capacity
  • optimal pace of work & shorter lead time
  • improved cash flow

Take a look at some examples of the solution:

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