Figure 2.21 How Inventory conceals Problems in the Factory.
pull out the defective products and thereby prevent "passing along trouble" to the next process. But this solution only covers up the real problem, which is the process's tendency to turn out defective goods. The inspection stock (inventory) solves the superficial problem of "passing along trouble" but does nothing to address the real problem. (See Figure 2.21)
The more a factory uses inventory to escape its peripheral problems and avoid dealing with its real problems, the more the real problems will grow, sending roots deeper and deeper into the manufacturing system. Eventually, they begin to weaken the very "character" of the factory. In this way, it is fair to call inventory "the opium of the factory. Like an opium habit, the inventory habit is best never started.
Lesson 15. Inventory Is the opium of the Factory
Inventory and Finance
Just about everything under the sun has some sort of function. One gizmo's function is to take in coins and dole out refreshments, while another's is to conduct electricity and