Strategos Lean Briefing

The Newsletter of Lean Manufacturing Strategy
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Kansas City

OCT 2002

Issue# 4

Inventory--Why All The Fuss?

Inventory reduction is a persistent theme in Lean Manufacturing; but, why so much ado? Some of the answer is that inventory devours cash like a black hole. Operating with less inventory frees cash for more constructive use.

Inventory is expensive to keep. In addition to the interest cost on money it requires space, insurance, computers and stock-keepers. It is susceptible to damage and obsolescence. The total annual carrying cost often runs 20%-60% of the inventory value.

But there is much more. The practices, techniques, policies and decisions that reduce inventory also eliminate many other forms of waste. By reducing inventory, your operation becomes more productive, more profitable and more responsive to customers.

Our latest “White Paper” explores some of these issues and offers new perspectives. You can find it on our website at

Best Regards,

Quarterman Lee

"The Strategos Guide To Value Stream & Process Mapping"

163 pages - Detailed Steps - Facilitation - Strategy

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The Strategos Guide To Value Stream and Process Mapping goes  beyond symbols and arrows. In over 163 pages it tells the reader not only how to do it but what to do with it.


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