Do you have too much inventory? Nearly everyone who has studied continuous improvement methods recognizes that inventory is one of the original seven wastes of lean (transportation, inventory, motion, waiting, overproduction, overpro-cessing and defects). Some might ask, "Doesn't inventory help smooth out those inevitable bumps in the production road and keep things moving along? Why would anyone consider it a waste?" There are three primary reasons: 1. Although accounting rules may regard inventory as an asset, it also can be a significant liability. Inventory represents cash that you are not free to use. It restricts you from investing in areas critical to the growth of your business. That's why many financial people properly recognize it as a frozen asset.
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