Deliveries to the customer are often delayed due to lack of appropriate product mix. Meanwhile the factory floor looks like it could serve the same number of customers or more for the next two years without replenishing any inventory. Raw material fed into the production unit seems to be never enough. WIP goods are stacked along walls and corridors or any available space – until a new warehouse is available. Work centres are filled beyond capacity and people and machines work around the clock to make the next customer order.
Sounds somewhat familiar?
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