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The Key 4 approach, together with other Keys, enables an organisation to reduce work-in-process (WIP), thereby achieving space savings, reducing working capital, having shorter customer supply lead times, as well as other inventory reduction related benefits Reducing Work-in-Process (WIP) KEY 4 ODI: CONTACT Tel: +27 12 665 0999 • E-mail: [email protected] Have a training workshop with management, and identify operations and strategic improvement opportunities for reducing WIP. Draw up a Key 4 implementation action plan, and start implementation in identified priority areas. Train shopfloor teams in relevant principles for implementation. Implement a measurement system for monitoring WIP levels. Apply the CAPDo cycle for the regular review of the Key 4 implementation action plan, as well as achieving the target maturity level of Key 4 • Continuously reduce work-in-process; all inventory in the process of converting raw material into finished goods stock • Work-in-process causes many problems, and hides other problems • Work-in-process levels are influenced by both operations and strategic issues • Key 4 is highly integrated with other Keys, especially Keys 5, 8, 16 • Process flow mapping • Eliminating the seven wastes • Four-step methodology (create a flowchart, decide what to work on, define the implementation team, implement the improved process) • Rules for reducing WIP (incorporated in the four-step process) • Implement appropriate coupling methods (Key 8) • Implement quick changeover methods (Key 5) • Analysis of the impact on operations (capacities, changeovers, quality, maintenance, coupling, suppliers, scheduling, etc.) and strategic issues (marketing, sales decisions, forecasting, product range, performance measurement, etc.) on WIP levels • Key 4 map www.odi.co.za
