Production leveling

Production leveling, also known as production smoothing or – by its Japanese original term – heijunka (平準化^?), is a technique for reducing the Mura (Unevenness) which in turn reduces muda (waste). It was vital to the development of production efficiency in the Toyota Production System and lean manufacturing. The goal is to produce intermediate goods at a constant rate so that further processing may also be carried out at a constant and predictable rate.

Where demand is constant, production leveling is easy, but where customer demand fluctuates, two approaches have been adopted: 1) demand leveling and 2) production leveling through flexible production.

To prevent fluctuations in production, even in outside affiliates, it is important to minimize fluctuation in the final assembly line. Toyota's final assembly line never assembles the same automobile model in a batch. Instead, they level production by assembling a mix of models in each batch and the batches are made as small as possible.

Production leveling can refer to leveling by volume, or leveling by product type or mix, although the two are closely related.

If for a family of products that use the same production process there is a demand that varies between 800 and 1,200 units then it might seem a good idea to produce the amount ordered. Toyota's view is that production systems that vary in the required output suffer from mura and muri with capacity being 'forced' in some periods. So their approach is to manufacture at the long-term average demand and carry an inventory proportional to the variability of demand, stability of the production process and the frequency of shipments. So for our case of 800-1,200 units, if the production process were 100% reliable and the shipments once a week, then the production would be with minimum standard inventory of 200 at the start of the week and 1,200 at the point of shipment. The advantage of carrying this inventory is that it can smooth production throughout the plant and therefore reduce process inventories and simplify operations which reduces costs.

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