Overproduction means a product, part, or service was produced too fast, at the wrong time, or in too much quantity for the process.
Overproduction is most often associated with tangible outcomes from a process.
For Example
Consider a business that prints and mails for their customers. The printer is capable of delivering 1,000 pages an hour, but the folding machine is only able to fold 800 pages an hour. Even if a customer wants 1,000 pages printed and mailed, the printer is overproducing if the first machine is set to operate at maximum speed. The process will take longer than one hour because is contingent upon the slowest machine – the folding machine. In this situation, rather than running the printing machine at the maximum speed to print 1000 pages per hour, it might be better to run it at slower speed e.g. 800 pages per hour to reduce the machine’s wear and tear.
Overproduction can also be associated with intangible outcomes. With regard to reporting, digital assets, and preparation for processes; almost anyone working in a business environment is familiar with reporting requirements – just as almost anyone who has created reports knows the unfortunate truth that the information often goes unread. Creating reports no one reads – or creating highly detailed reports when an overview would suffice – is overproduction.
The key to eliminating overproduction is planning. In the example above, when the owners know how many orders were likely, they were able to plan to reduce waste. When the printer knows the capability of each machine in the process, he or she can plan for the most efficient printing run.