2. The Smart Buyer
Buy the right material, in the right quantity, at the right time
PPC Journey 3 of 18
From Material to Value
Inventory is not wealth until it becomes customer value.
Keep material flowing until it becomes customer value
Cash and material
What this journey is about
A plant can hold crores of raw material, WIP and finished goods and still struggle with cash, because material sitting still is only potential value.
A component may spend two hours being processed and twenty hours waiting. The factory calls it production time; the customer experiences it as lead time.
This journey is about flow: waiting, bottlenecks, batch sizes and making problems visible, so customer orders keep moving instead of machines merely staying busy.
Key idea
Inventory is potential value. Flow converts potential into value.
Where we look in your plant
Episodes
8 episodes
Each episode follows one factory story, the business numbers behind it, and one action for Monday morning.
- EP 01Material Is Not Value
- EP 02The Cost of Waiting
- EP 03WIP Is Not Progress
- EP 04Find the Bottleneck
- EP 05A Busy Machine Is Not a Productive Machine
- EP 06Every Batch Has a Hidden Cost
- EP 07Make the Problem Visible
- EP 08From Material to Customer Value
Next step
Does this sound like your plant?
We measure where your plant stands today, agree the target with you and work alongside your team until it is reached. We charge on success fees.
Continue the series
Previous and next journey
4. The Revenue Rescue Mission
Recover dispatches blocked by constraints
FAQ
Frequently asked questions
What is PPC Journey 3, From Material to Value, about?
A plant can hold crores of raw material, WIP and finished goods and still struggle with cash, because material sitting still is only potential value. A component may spend two hours being processed and twenty hours waiting. The factory calls it production time; the customer experiences it as lead time. This journey is about flow: waiting, bottlenecks, batch sizes and making problems visible, so customer orders keep moving instead of machines merely staying busy.
What is the key idea of From Material to Value?
Inventory is potential value. Flow converts potential into value.
Which episodes are in From Material to Value?
From Material to Value has 8 episodes: Material Is Not Value, The Cost of Waiting, WIP Is Not Progress, Find the Bottleneck, A Busy Machine Is Not a Productive Machine, Every Batch Has a Hidden Cost, Make the Problem Visible and From Material to Customer Value.