ABSTRACT
Production leveling is one of the pillars of the Toyota production system. It is aimed at producing the quantity taken by one process from the one that precedes it. Moreover, Toyota employs the kanban to synchronize processes at its own plants and parts suppliers. Actual demand is determined through thorough market research; load and capacity are then balanced without resorting to overproduction. Since the master schedule spans a lengthy period, it is generally a speculative plan based on demand forecasts. The intermediate schedule can be a confirmed plan if firm orders are determined before the production cycle. The longer the period of production covered by a production plan, the more likely it is that production will deviate from actual orders. The biggest disadvantage of mixed production is that it increases setup changes. The Toyota production system may be thought of as a very advanced segmented production system — it is quite effective but also very difficult to attain.
