ABSTRACT

Early Monday morning, Mark arrived at Tires for All, knowing that at the end of the week he had to travel to Corporate Headquarters to report on the financial status of his company. He wasn’t as worried as he had been on previous trips, simply because his profit margins were only one point away from the magic number of 20 percent that the Board wanted. He was concerned that his on-time delivery metric was still too low, but he truly believed that it would improve with time. He decided to walk through his facility and look at things like the level of work-in-process (WIP) inventory, rework levels, and, of course, the scrap levels that currently existed. As he walked through his plant, he was pleased with the rework and scrap levels, but the WIP levels did not look good.