Principle – Demand orientated production
Method – Customer takt
Tool – Production smoothing and leveling
Production smoothing:
By using standardized buffers, production is decoupled from customer demands. This avoids that short-term variations in demand have an effect on production.
The decoupling will be achieved by defined service classes in connection with a finished products supermarket. Service classes are understood to be standardized supply processes (finished products) from production to customers based on the demands of the customers.
Production leveling:
Leveling of the production will be achieved if the production orders are scheduled in a planned and preferably standardized and recurrent pattern.
Small batches and minimal frozen horizons are required to represent the customer takt over a defined period of time.
Prevent unnecessarily high variations in production output
Shorten lead times, and therefore response times to the customer
Reduce WIP (work in progress) inventory
Increase productivity by avoiding unplanned changes to production scheduling
Reduction and/or elimination of the Bull-Whip-Effect
Ensure continuous flow, to support standardized work
Increase flexibility