Inventory

Where it comes from

One of Ohno's original seven wastes at Toyota, and the one that just-in-time production was designed to expose and drain away.

What it looks like

• Aisles and racks full of raw material bought long before it is needed.
• Piles of half-finished work waiting between stations.
• Finished goods sitting in a warehouse while they wait for orders.

Why it matters

Excess stock ties up cash and floor space, ages or spoils, and hides the real problems (breakdowns, defects, long changeovers) that a leaner buffer would force into the open.