ABSTRACT
Improved production systems are built on new ideas and on the rethinking of basic notions. The initial step in understanding the new Japanese production systems, therefore, lies in correctly grasping their fundamental concepts. Most people think that improving transport refers to things like using forklifts or installing conveyors. No doubt, the notion of an economic lot is rational. Improvements guided by the economic lot concept are superficial. There are many conceptual blind spots. Japanese production systems are oriented toward non-stock production, and are based on the fundamental concept of assured production. Even with speculative production systems, of course, a certain amount of effort is put into minimizing inventories. Assured production takes the place of speculative production as a fundamental concept, a move that eliminates the losses inherent in guesswork. Production for large orders applies to production where the customer demands a large volume of the same product.
