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Larger Inventory Investment than needed
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Expediting of Purchased Materials
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Expediting
of Production Orders
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Wasted Capacity
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Overtime
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Wrong use of Safety Stock
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Existence of a “Work-A-Round System”
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Multiple Set-ups
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Forecasting Accuracy less than 95%
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Excess and Obsolete Inventory
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Customer requests for delivery faster than
time offered
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Master Production Schedule errors
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Repeated use of “temporary employees”
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Inventory Turns less than “12”
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Shortages & Stock-outs of raw
materials & components
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Back Orders