Lesson 3: The Final Three Wastes
<1 min
About This Lesson
Master Overproduction, Over-processing, and Defects—including why overproduction is the "king."
Video 1: Overproduction — The Clean Claim Myth
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Video 2: Over-processing — More Than Required
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Video 3: Defects — The Rework Loop
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What percentage of claims at your organization need rework due to errors?
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Video 4: Why Overproduction is Worst
<1 min“The most dangerous kind of waste is the waste we do not recognize.”
Ohno identified overproduction as the worst waste precisely because it hides other wastes.
Explore: The 7 Wastes (Muda) in Revenue Cycle
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How do the 7 wastes affect revenue cycle metrics?
The seven wastes directly impact key performance indicators.
- Transportation waste increases days in AR through unnecessary routing
- Inventory waste (backlogs) directly impacts cash flow and aging metrics
- Defects create rework loops that multiply labor cost per claim
These technical impacts compound: high denial rates create backlog, which creates rework.
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