Such an approach, however, does not necessarily lead to the best results. For instance, one facility I visited recounted how its focus on waste reduction led it to slash its inventories by 20 to 30 percent.
The results were severe stock outs and workarounds soon mounted to a point that nearly crippled its operations. What was the lesson?
Although large inventories point to the existence of a problem, addressing only the symptoms is not the answer.
The challenge companies face is not so much in understanding that something must be done but determining what must be done and how best to proceed