One of my favorite brain teasers when giving Lean training is the question of whether having a large order backlog is a good thing or not. It is rare for anyone to immediately say that it is a bad thing, and this is why it is such an illuminating example of how to think Lean.
Many companies that are doing well like to tell how their order backlog has increased and is at a high level. This is commonly seen as a sign of success, but it is not necessarily so. To see why this is so, we need to look at the issue from the point of view of both the company and the customer.
Continue reading “Having a large order backlog is actually not a good thing”