The Balanced Plant

Thought this idea was worth mentioning. What is a balanced plant? Sure, you want to minimize inventory and maximize throughput, but if you were to take those things to an extreme, does that mean you should have zero inventory and infinite throughput? Don’t be ridiculous, you silly goon!

The ideal situation is a balanced plant, which is when the market pulls everything through the plant.

That means throughput is generated to meet market demand – no more, no less. When an order is needed, a product is made and shipped. Inventory is pulled in as needed and operational costs are spent as needed.

Everything is in balance with the market. That’s a balanced plant.

This is not a life-changing concept, but it’s mentioned enough in the book that I thought it was worth noting. Now, back to the main stuff…