What does Over-production refer to in process management?

Over-production in process management refers to the situation where more products are produced than are actually needed or demanded by customers. This concept is significant because over-production can lead to excessive inventory, increased storage costs, and potential waste of resources. In Lean principles, it is seen as one of the key forms of waste (or 'muda') to be minimized or eliminated.

Focusing on producing only what is necessary helps to streamline operations, reduce costs, and improve efficiency. By addressing over-production, organizations can align their output more closely with customer demand and respond more swiftly to market changes. This aligns with Lean methodologies, which emphasize value creation and the elimination of waste in all forms.

Other options describe different challenges that can occur in production but do not specifically capture the essence of over-production. Delays refer to timing issues, defects pertain to quality problems, and outdated technology concerns process and efficiency rather than the quantity of products produced.