Overproduction and raw material stockpiling contributed to waste in Taiichi Ohno's company by creating an excess of products and materials that were not needed at the time. This was particularly problematic when consumer demand would fluctuate, as it meant that resources were being used to produce goods that were not being sold, leading to financial losses. Additionally, the stockpiling of raw materials meant that space was being taken up by unused materials, which could have been used more efficiently. This led Ohno to develop a system to signal when a new product was required, to better align production with demand.
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