## The Hidden and not-so-hidden costs of Inventory

Inventory is one of the seven types of waste. There is usually quite a significant cost associated with having inventory, usually much more than what traditional bookkeeping accounts for. Between 30% and 65% of the value of your inventory is spent every year as inventory-related costs! This post looks into more detail at the cost of this inventory.

## Manufacturing – A key stepping stone on the Road to Prosperity

Manufacturing is an important part of most economies. However, during the development of an economy, manufacturing plays different roles at different times. In fact, manufacturing is a key stepping stone on the road to economic prosperity. During the development from an agricultural society to a service society, nations must go at one point through a industrial society.

## The Bottleneck Walk – Practical Bottleneck Detection Part 2

The bottleneck walk is far and wide my most favorite method to detect bottlenecks on the shop floor (not only because it was developed by me, but also because it is really good!). You can detect shifting bottlenecks, using no math whatsoever and no time measurements, simply by walking along the production line and observing the line. It’s almost too easy to believe, but it works like a charm! Due to the length of this topic, I have broken the article into two posts. The first post “The Bottleneck Walk – Practical Bottleneck Detection Part 1” details how to find the current temporary bottleneck. This second post details how to determine the big picture regarding the bottlenecks. See below for a complete list of posts on this series on bottlenecks.

## Mathematically Accurate Bottleneck Detection 1 – The Average Active Period Method

This post describes an accurate way to detect the bottleneck in manufacturing systems, based on the average times a process is waiting or active. The method determines the primary bottlenecks in the system much more accurately than other methods commonly used in industry. The method was developed by me during my time at the Toyota Central R&D Laboratories in Japan. Subsequent posts look at other bottleneck detection methods that actually DO work!

## The Bottleneck Walk – Practical Bottleneck Detection Part 1

The bottleneck walk is far and wide my most favorite method to detect bottlenecks on the shop floor (not only because it was developed by me, but also because it is really good!). You can detect shifting bottlenecks, using no math whatsoever and no time measurements, simply by walking along the production line and observing the line. It’s almost too easy to believe, but it works like a charm! Due to the length of this topic, I have broken the article into two posts. This first post details how to find the current temporary bottleneck. The second post details how to determine the big picture regarding the bottlenecks. See below for a complete list of posts on this series on bottlenecks.

## Mathematically Accurate Bottleneck Detection 2 – The Active Period Method

This post describes a second accurate way to detect the bottleneck in manufacturing systems, based on the precise times a process is waiting or active. The method is highly accurate, not only giving the likelihoods of different processes being the (temporary) bottleneck, but also estimating the improvement of the entire system capacity if the bottleneck(s) are improved. It is also possible to observe the shifting of these bottlenecks over time. The method was developed by me during my time at the Toyota Central R&D Laboratories in Japan. See below for a complete list of posts on this series on bottlenecks.

## Common Bottleneck Detection Methods that do NOT work!

To improve your system capacity, it is a must to find and improve your bottleneck. However, finding the bottleneck is difficult. Most methods used in industry fail at finding the bottleneck. As discussed in my previous post on Shifting Bottlenecks,  this is mostly due to bottlenecks being dynamic and frequently shifting from one process to the next. In this post we will look at common bottleneck detection methods used in industry. More importantly, we will find out more about failures of bottleneck detection methods commonly used in industry. Subsequent posts look at bottleneck detection methods that actually DO work!