Utilization vs. Flow paradox
2. Why "High Utilization" is an Operations Trap It Creates the Ultimate Waste: Overproduction Overproduction is the "mother of all wastes" because it breeds and hides every other operational failure. When you run machines just to keep utilization metrics high, you create excess inventory. The Cost: That inventory requires warehouse space, material handlers, forklifts, and tracking software. The Risk: It risks obsolescence, damage, and engineering change reworks. It Blinds You to Real Capacity When a plant is choked with Work-in-Progress (WIP) inventory caused by over-utilization, lead times skyrocket. Workers spend half their day moving parts out of the way just to find the parts they actually need. High utilization creates an illusion of a busy, high-capacity plant, when in reality, the plant is drowning in its own excess. It Destroys Flexibility and Responsiveness If a machine is booked $100\%$ of the time with long production runs to achieve "economies ...