Why is excess inventory regarded as waste in manufacturing?

Excess inventory is seen as waste in manufacturing primarily because it requires resources and employee labor. In a lean manufacturing context, excess inventory ties up capital and space, and it can lead to increased costs for storage, handling, and management of those materials. The resources spent on maintaining this surplus inventory, such as labor for tracking, moving, and organizing it, do not contribute to the value creation process. Instead of adding value, excess inventory often results in inefficiencies that can hinder production flow and lead to wasted resources.

Additionally, maintaining surplus stock can divert employee focus from more critical tasks that directly impact production efficiency and quality. This unnecessary allocation of labor and resources represents a drain on the overall operational effectiveness, making it important to minimize excess inventory to streamline processes and maximize value in the manufacturing environment.

Options suggesting improved employee morale or customer satisfaction are not linked to the reality of excess inventory; instead, these conditions can often be negatively impacted by the burdens of managing unnecessary stock.