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Otto Environmental Systems North America, Inc.

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Company Background
Otto Environmental Systems North America, Inc. is a plastic manufacturer of waste and recycling containers we are tier one supplier for some parts to GM and Electrolux. Our mission is to provide innovative products created for today’s collection needs and customized services developed with technology and experience.
Problem
Current Situation
Inventory is the plaque in my organization; as we continue to follow the production practices as was being done in the past. The fundamental cause of such trend is based on the fact that all the machine/equipment and also the available manpower have to be kept busy irrespective of actual requirements. Almost all the managers in the organization have the wrong notion that large batch sizes reduce the element of setup time that is a reduction in throughput time. In fact, the results achieved go contrary to expectations. One of the important reasons is a wide variety of products, varied demand for each category including rationalization of production numbers by the planning department to match with the sales requirements. e.g. If we have an order for 400 95 gallon carts then the planning department plans for 410 generating overproduction. Besides the overruns, the demand we are placing on our machines to be busy without solid orders from customers by generating genetic products.
Wasteful Impact to the Organization
Products overruns hurt the organization on all levels, some may be visible others may not, the core effect

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