Question

1. One of the objectives of leveling is to sequence production so that smaller batches are made during a specific time period. What improvements have to be done to the process to make this economically feasible? What benefits does this sequencing of production provide for the customer?

Answer 1

One of the most important factors within production is ability to match supply or output to demand for a period which is however difficult to forecast accurately due to constant unpredictable fluctuations of customer demand for any given product or service. Minimization of wastage arising due to excessive production of a single product which may remain unsold due to inaccurate demand forecasting resulting in lost to the company in cost of production and also with subsequent warehousing and handling cost. adoption of lean models such as levelling of production can eliminate the problems associated with fluctuating demand which is unpredictable by reduction of batch size, flexibility to produce exactly what the customer bonds at the time that the requirement arises comma minimization of risk from unsold goods balanced utilisation of labour in machines to minimise loss of input resources due to production of goods not required along with smooth demand on the upstream processes and suppliers due to streamlining of the downstream.

The process to be introduced achieving levelling of production is takt time with facilitates matching of current demand to the output produced through control of the production process buy specification of number of units required to be produced per unit time at each work center to accurately meet the demand. This results in minimization of waste along with being able to undertake production exactly to fulfill the present current demand of the customer leading to optimal customer satisfaction and building of the brand image. Small batch sizes also help to further streamline required features of the product to maximize perceived value for meeting requirements of different target customer groups adequately through changing minimal features for optimising output value.

Thus, Leveling provides various cost reduction opportunities helping to minimise wastages and maximize benefits through optimal production management with simultaneous ability to satisfy customers.