Just-In-Time/Kanban Systems AlliedSignal Just-In-Time/Kanban Systems AlliedSignal Just-In-Time/Kanban Systems AlliedSignal How does leveling work? As previously mentioned, fluctuations in the amount of work required occurs in the production process. Theoretical axis represents the work required. The horizontal axis represents the work days. If the production capacity is adjusted to the highest output (No. 3), there will be wasted capacity at the low output requirement time. If the capacity is matched to the low workload level at No. 2 or No. 4, high level production will be impossible to achieve, as sales will be lost. The ideal situation is to establish and maintain a leveled production schedule with as little fluctuation as possible (see next slide.) Just-In-Time/Kanban Systems AlliedSignal Leveled production is the process of taking the customer demand for a product to be produced in a given time period (e.g., 1 month) and then spreading the manufacturing of that product evenly over that period of time. Why is this process so important? Because it is customer oriented rather than production oriented. The traditional production philosophy is to manufacture its product varieties in large batches. These large batches are designed to maximize the operating efficiency of the production processes. The problem with this philosophy is that it does not take into consideration the changes in demand of the consumer. This is a very selfish approach to satisfying the product’s market. Traditional production systems that use batch manufacturing push the product on the consumer. The attitude is: “This is what we are going to build this month. What we build is what you get.” Obviously, an organization that uses this philosophy today will not survive. The competition realizes this will not work in today’s world market and is changing its philosophy to comply to the demands of its customers. This customer-driven philosophy is commonly referred to as a Modern Produ
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