Waiting time waste is defined as people or things waiting around for the next action. Forms of time waste include, but are not limited to production down time, lengthy processing times, long lead times, and approval processes.
How VMI Services Reduce Waiting Time Waste
Simply stated, the product is at the point of use in sufficient quantity to meet production requirements. The VMI service provider is working behind the scenes with their suppliers to ensure the customer has an adequate supply of inventory and that there is no interruption of production due to stock-outs or delays in lead time. This is especially valuable for custom parts that run on longer lead times.
- There is no need to “chase” parts in the plant or with the supplier.
- Freight/expedite costs are covered by the VMI service provider (since expedites, in theory, should diminish over time).
- Plant personnel can focus on meeting customer delivery requirements.
- Purchasing personnel can focus on the top 20% of their purchases that are 80% of their overall spend.