Production leveling

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.

It is here that the discussions on economic order quantities take place and have been dominated by changeover times and the inventory this requires.

This meant that the demand for components could be leveled for the upstream sub-processes and therefore lead time and total inventories reduced along the entire value stream.

Demand levelling does not include influencing activities designed to clear existing stock.

The much later arrival of forecast product demand volumes makes demand leveling irrelevant since the issue has now switched to disposal at best price possible products that are already created and possibly paid for.

Reliable, flexible manufacturing will then mean that low stock levels (if any) do not interfere with customer satisfaction and that incentives to sell what has been produced eliminated.

Where this cannot be agreed then it can be simulated and the benefits gained through frequent deliveries and a market location.