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Surveys indicate that 60~80% of the cost of meeting customer requirements are attributed to poor, inefficient administrative functions in the non-manufacturing areas. We are aware that Lean Manufacturing practices and tools facilitate free flow and as a result, non-value adding activities are minimized. While much focus is paid on manufacturing processes to minimize wastes, It is quite common that organizations ignore the wastes that happen in non-manufacturing processes. Identifying the non-value adding activities in an administrative process is difficult unlike those in the manufacturing process as they are not too obvious. It is quite essential to have a high performing, waste-free offices just as we need waste-free manufacturing processes. The tools are same how ever, right practices fetch the right benefits.


Inventories consume cash and show up as ‘Interest on working capital’ to damage the balance sheets of most manufacturing organizations! In addition, inventories cost more money to store, move, track & insure! The paradox is that high inventories co-exist with two universal problems – overstocking & stock-outs!


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